Best performing mutual funds low devistion

The below table shows the NIFTY 50 Returns, Index Fund Returns, and Tracking Difference of the fund over a 5 year period: To better understand this, letвЂ™s take an example. Mathematically, tracking error is the annualized standard deviation of the tracking difference of an Index Fund. So, tracking error indicates the consistency of a productвЂ™s tracking difference during a specific time period. However, in reality, tracking error is actually an indicator of the variability in the performance of an Index Fund. It is commonly believed that tracking error is related to the performance of an Index Fund.

A positive tracking difference means that the Index Fund has outperformed its benchmark. However, the tracking difference of an Index Fund is not always negative. This difference of -0.5% (4.5% вЂ“ 5%) is the tracking difference of the Index Fund.ДЄ negative tracking difference means that the Index Fund has underperformed versus the benchmark. On the other hand, the NAV of an Index Fund that tracks the NIFTY 50 gained 4.5% during the same period.

Suppose the NIFTY 50 Index gained 5% this month. To understand this better letвЂ™s take an example. In simplest terms, tracking difference refers to the difference in performance between an Index Fund and the benchmark index being tracked by the fund. But there is a significant difference between what these terms signify. Two terms related to Index Funds that are often used interchangeably are tracking error and tracking difference.

Best performing mutual funds low devistion