Cryptocurrency Q&A
What is a beta fund?
What is a beta fund?
Raffaele
Wed Feb 26 2025
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5
answers
1219
I recently heard about a beta fund and I'm curious to learn more about it. Could someone explain what a beta fund is and how it works in the financial market? I'm particularly interested in its characteristics, risks, and potential returns.
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5 answers
Rosalia
Fri Feb 28 2025
For an index, the Beta value is standardized at 1. This signifies that the index itself moves in tandem with its own benchmark, serving as a neutral reference point.
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Sofia
Fri Feb 28 2025
When it comes to funds, their Beta values can vary significantly. A fund's Beta can exceed 1, indicating that it is more volatile than its benchmark index.
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BlockchainLegendary
Fri Feb 28 2025
Conversely, a fund's Beta can be less than 1, suggesting that it is less volatile and experiences smaller fluctuations compared to its benchmark.
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CryptoAlchemy
Fri Feb 28 2025
Intriguingly, a fund's Beta can also be negative. In such cases, the fund and its benchmark index are inversely related, meaning that when the benchmark increases, the fund decreases, and vice versa.
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KimchiQueen
Fri Feb 28 2025
Beta serves as an indicator to gauge the relative risk or volatility of a fund in comparison to its benchmark index.
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