Open a free Demat account & get ₹500 in stocks.Claim
अ
ArthVani
Nifty 5022,429.90.89%H 22,433 · L 22,294.75upd. 9:43 AM IST|Sensex71,958.90.51%H 72,036.03 · L 71,739.49upd. 9:28 AM IST|Bank Nifty55,129.91.13%H 55,153.45 · L 54,617.2upd. 9:43 AM IST|USD / INR₹96.730.05%H ₹96.78 · L ₹96.67upd. 9:43 AM IST|Gold Intl (10g)₹1,30,723.191.12%H ₹1,30,766.73 · L ₹1,29,252.19upd. 9:32 AM IST|Silver Intl (1kg)₹1,88,011.391.73%H ₹1,88,213.53 · L ₹1,84,885.9upd. 9:33 AM IST|Crude WTI₹8,750.21.13%H ₹8,842.09 · L ₹8,740.52upd. 9:32 AM IST|Bitcoin₹79,69,2810.31%H ₹79,81,572.7 · L ₹79,56,989.3upd. 9:38 AM IST|Ethereum₹2,40,9452.76%H ₹2,44,273.47 · L ₹2,37,616.53upd. 9:38 AM IST|Nifty 5022,429.90.89%H 22,433 · L 22,294.75upd. 9:43 AM IST|Sensex71,958.90.51%H 72,036.03 · L 71,739.49upd. 9:28 AM IST|Bank Nifty55,129.91.13%H 55,153.45 · L 54,617.2upd. 9:43 AM IST|USD / INR₹96.730.05%H ₹96.78 · L ₹96.67upd. 9:43 AM IST|Gold Intl (10g)₹1,30,723.191.12%H ₹1,30,766.73 · L ₹1,29,252.19upd. 9:32 AM IST|Silver Intl (1kg)₹1,88,011.391.73%H ₹1,88,213.53 · L ₹1,84,885.9upd. 9:33 AM IST|Crude WTI₹8,750.21.13%H ₹8,842.09 · L ₹8,740.52upd. 9:32 AM IST|Bitcoin₹79,69,2810.31%H ₹79,81,572.7 · L ₹79,56,989.3upd. 9:38 AM IST|Ethereum₹2,40,9452.76%H ₹2,44,273.47 · L ₹2,37,616.53upd. 9:38 AM IST|
BreakingIndia's GST Reforms Enter Third Phase, Focus on Refunds & Input Tax Credit: PwC1/6

Alpha

The excess return a fund earns over its benchmark.

Definition

Alpha measures how much a fund or portfolio has outperformed (positive alpha) or underperformed (negative alpha) its benchmark index, after adjusting for risk. It reflects the value added by the fund manager's decisions.

Example

If a fund returns 15% while its benchmark returns 12%, it has generated roughly 3% of alpha.

Compare funds

Frequently asked questions

Related terms

BetaCAGRTER
Browse the full financial glossary. Educational only — not investment advice.