ilmscore | Prediction Details
"Now one more important point comes up is okay returns are fine but I want to ensure that returns are not taken with a higher risk and for that we typically check sharp ratio. Okay. Now just to give you a comparison of what is return versus risk. Uh these days England versus India matches are going on. So I'll give you an example. Let's say a batsman has hit 100 runs with all the aerial shots something like rishap punt okay versus there is a batsman let's say shuman gil and he is playing all ground strokes and he has also scored 100 now you'll be like returns both have given 100 but who has taken more risk shoil has taken less risk punt has taken more risk so I am interested to go ahead with a fund which is giving me better returns with a specific unit of risk or with a similar uh unit of risk. Okay. And for that we go ahead with sharp ratio. Okay. And you can also see the ratio for I mean formula for sharp ratio. Uh if you want you can check it out. But it's anyways ready made readily available on ticker tape. So let's get back to the screen and here uh let's add one more filter. If you're not sure where it would come ideally it will come in ratios and it is uh but you can also directly search here. Okay. So I'm I'm going to ratios sharp ratio and I'm going to say done. Okay. important higher the better or lower the better higher the better so I'm going to just sort this which are the top three again access liquid fund adas life liquid fund and kotak liquid fund this time okay so top three clear yes now you're saying okay all returns related things clear but what about expense ratio because of course expense ratio lower the better so here again I click here but uh I want to sort it in an ascending fashion from lower to high again access liquid fund at number one then HDFC liquid fund at number two and nipp India liquid fund at number three. Okay."
By CA Rachana Phadke Ranade | July 18, 2025 | Correct
Interpreted Prediction
When selecting liquid mutual funds, a lower expense ratio is preferable.
AI Evaluation Notes
The prediction states that when selecting liquid mutual funds, a lower expense ratio is preferable. This is a generally accepted principle in finance, as lower expenses directly translate to higher returns for the investor, all other factors being equal.

Prediction Details

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