Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
The Sortino ratio measures risk-adjusted returns by penalising only downside volatility, unlike the Sharpe ratio which penalises all volatility equally.
A risk-adjusted return measure that only cares about bad (downside) swings, not good ones.
Calculated as (portfolio return − risk-free rate) divided by downside deviation; a higher Sortino ratio indicates better returns per unit of downside risk.
A fund with steady upside but occasional sharp drops may show a lower Sortino ratio than a smoother performer.
A risk-adjusted return measure that only cares about bad (downside) swings, not good ones.
Sortino Ratio helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.