A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility in ...

While choosing mutual funds, we often look at the return and not the risk that the scheme takes to get there. Sortino ratio is a parameter that helps understand how much risk a scheme has taken.

The Sortino ratio aims to provide a snapshot of how a fund has balanced risk and reward by focusing specifically on downside volatility. Recently, we discussed how you can use the Sharpe ratio to ...