▲ 1 r/mutualfunds
Upside and downside ratios in mutual funds
In PPFAS unitholder meets, they use Morningstar data to show how their Flexi Cap has solide downside protection. Their CEO Neil says that they have an average upside and solid downside ratio.
The math:
Upside is 93 - Means fund rises 93 points for every 100 point gain in index
Downside 65 - Means fund falls just 63 points for every 100 point gain in index
But I don't understand why 'Index' here is not 100. Can any pro investor please clear my doubt?
u/Classic_Bathroom2744 — 6 days ago