What is R-Squared?
R-Squared — A measure (0–100%) of how much of a fund’s movement is explained by its benchmark — high R-squared means it closely tracks the index.
In simple terms
An index fund has an R-squared near 100%.
Why R-Squared matters when you invest
Understanding r-squared 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.
R-Squared — frequently asked questions
What is R-Squared?
A measure (0–100%) of how much of a fund’s movement is explained by its benchmark — high R-squared means it closely tracks the index.
What does R-Squared mean in the stock market?
A measure (0–100%) of how much of a fund’s movement is explained by its benchmark — high R-squared means it closely tracks the index. An index fund has an R-squared near 100%.
Can you give an example of R-Squared?
An index fund has an R-squared near 100%.
Put it into practice — open a free account.
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