What does a Beta of less than 1.0 mean?

A Beta < 1.0 indicates that the fund is less volatile than the market index. These funds tend to fall less than the market during crashes but may rise slower during bull runs.

Is a negative Alpha possible?

Yes, a negative Alpha means the fund manager underperformed the benchmark after accounting for the risk taken. This is often a sign to reconsider the investment.

How is Jensen's Alpha different from Absolute Alpha?

Absolute Alpha is just Return minus Benchmark. Jensen's Alpha is more accurate as it adjusts the benchmark return based on the fund's risk (Beta).

Beta & Alpha Calculator

Measure manager skill using Jensen's Alpha and evaluate market sensitivity through Beta coefficients.

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Quick Summary: Beta & Alpha Calculator

Beta and Alpha are the two pillars of fund performance evaluation. Beta measures a fund's sensitivity to market movements; a Beta of 1.2 means the fund is 20% more volatile than the index. Alpha measures the 'Manager Skill'—the excess return generated above what would be expected for the risk taken. Consistent positive Alpha is the hallmark of a top-tier mutual fund in India.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.