Invest Made Easy

Understanding Volatility and Sharpe Ratio in Unit Trust Investing!

Shane My
Publish date: Thu, 07 Mar 2013, 01:53 AM
Shane My
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Like many of us, we seek for financial security and ultimately financial freedom. This blog is intended to act as a journal of investment as I journey towards that dream. At the same time, I hope that the articles written here would also benefit many others who share the same vision as me.

Familiar with the following two jargon in unit trust investing?

 
 
If you're investing Unit Trust with Fundsupermart, I'm sure you noticed these two terms at the bottom portion of each 'fund factsheet' page:
 
 
You might also come across the term 3-year Fund Volatility at the top of any fund factsheet. Here's a sample from AMB Dividend Fund factsheet:
 
 
*Note : 3 Year Fund Volatility and 3 Year Annualised Volatility are the same.
 
So what exactly is a 3-yr Annualised Volatility and a 3-yr Sharpe ratio? 
 
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