What is Alpha?
Alpha — The return a fund generates above (or below) its benchmark, after adjusting for risk — a measure of manager skill.
In simple terms
A positive alpha means the fund beat its benchmark on a risk-adjusted basis.
Why Alpha matters when you invest
Understanding alpha helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Alpha — frequently asked questions
What is Alpha?
The return a fund generates above (or below) its benchmark, after adjusting for risk — a measure of manager skill.
What does Alpha mean in the stock market?
The return a fund generates above (or below) its benchmark, after adjusting for risk — a measure of manager skill. A positive alpha means the fund beat its benchmark on a risk-adjusted basis.
Can you give an example of Alpha?
A positive alpha means the fund beat its benchmark on a risk-adjusted basis.
Put it into practice — open a free account.
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