NISM 5B Mutual Fund Foundation Certification Exam Notes

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  • Tracking Error: Measures deviation of fund returns from benchmark.
  • Total Return Index (TRI): Includes dividends and capital gains for benchmarking.
  • Price Return Index (PRI): Only accounts for capital gains, not dividends.
  • Risk-Adjusted Returns: Higher risk should yield higher returns for efficiency.
  • Beta: Measures a fund’s sensitivity to market movements.

NISM 5B Mutual Fund Foundation

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