Quick Summary: Sharpe & Sortino Ratio

The Sharpe and Sortino Ratios are essential metrics for measuring risk-adjusted returns. While the Sharpe Ratio compares excess return to total volatility (standard deviation), the Sortino Ratio specifically focuses on 'harmful' downside volatility. A higher ratio indicates that a fund is generating better returns for every unit of risk taken, helping you identify superior portfolio managers in India.

How to use the Sharpe & Sortino Ratio

  1. Input Annual Return

    Enter the fund's annualized return percentage over your chosen horizon.

  2. Set Risk-Free Rate

    Provide the current yield on safe assets like the 10-year G-Sec (e.g., 7%).

  3. Enter Volatility Data

    Input the fund's standard deviation (for Sharpe) and downside deviation (for Sortino).

  4. Analyze Performance

    Compare the resulting ratios against category averages to gauge manager efficiency.

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Regulatory Disclaimer

Last verified May 2026

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.