Explained: What is Return Due to Net Selectivity Ratio in mutual funds. Why does it matter?

Explained: What is Return Due to Net Selectivity Ratio in mutual funds. Why does it matter?

When evaluating mutual fund performance, one important metric to consider is the return due to net selectivity ratio. This concept captures a manager’s ability to generate excess returns through effective stock selection, beyond what the general market delivers. To understand how this ratio influences the return, it’s essential to grasp the underlying mechanics and factors … Read more