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Nifty 5023,985.350.04%H 24,041.15 · L 23,954.6|Sensex76,765.920.09%H 76,988.48 · L 76,672.77|Bank Nifty56,755.60.58%H 57,054.2 · L 56,672.4|USD / INR₹95.840.06%H ₹95.91 · L ₹95.62|Gold Intl (10g)₹1,23,837.961.43%H ₹1,25,896.33 · L ₹1,23,764.01|Silver Intl (1kg)₹1,75,777.872.84%H ₹1,81,262.74 · L ₹1,75,331.07|Crude WTI₹7,785.251.67%H ₹7,900.26 · L ₹7,648.19|Bitcoin₹60,37,6043.15%H ₹61,32,788.81 · L ₹59,42,419.19|Ethereum₹1,79,3553.91%H ₹1,82,863.35 · L ₹1,75,846.65|Nifty 5023,985.350.04%H 24,041.15 · L 23,954.6|Sensex76,765.920.09%H 76,988.48 · L 76,672.77|Bank Nifty56,755.60.58%H 57,054.2 · L 56,672.4|USD / INR₹95.840.06%H ₹95.91 · L ₹95.62|Gold Intl (10g)₹1,23,837.961.43%H ₹1,25,896.33 · L ₹1,23,764.01|Silver Intl (1kg)₹1,75,777.872.84%H ₹1,81,262.74 · L ₹1,75,331.07|Crude WTI₹7,785.251.67%H ₹7,900.26 · L ₹7,648.19|Bitcoin₹60,37,6043.15%H ₹61,32,788.81 · L ₹59,42,419.19|Ethereum₹1,79,3553.91%H ₹1,82,863.35 · L ₹1,75,846.65|
BreakingNew Investors: Avoid These 5 Common Stock Market Mistakes1/6

Alpha

The excess return a fund earns over its benchmark.

Definition

Alpha measures how much a fund or portfolio has outperformed (positive alpha) or underperformed (negative alpha) its benchmark index, after adjusting for risk. It reflects the value added by the fund manager's decisions.

Example

If a fund returns 15% while its benchmark returns 12%, it has generated roughly 3% of alpha.

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