A ratio of portfolio returns above the returns of a benchmark (usually an index) to the volatility of those returns. The information ratio measures a portfolio manager’s ability to generate excess returns relative to a benchmark, but also attempts to identify the consistency of the investor. This ratio will identify if a manager has beaten the benchmark by a lot in a few months or a little every month. The higher the IR the more consistent a manager is and consistency is an ideal trait. The Information Ratio for various categories is calculated using the following Indices : -

Category	Index
Large Cap	Nifty 50
Mid Cap	Nifty Free Float Midcap 100
Small cap	BSE SMALL CAP
Opportunistic	BSE 200
Aggressive Hybrid	NIFTY 50 Hybrid Composite Debt 65:35 Index

A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.

The Sharpe Ratio is a measure for calculating risk-adjusted return. It is the average return earned in excess of the risk-free rate per unit of volatility or total risk. For Risk Free Rate we consider the 3 year average yield of 10 year Generic Gsec from Bloomberg.

Beta, also known as the “beta coefficient,” is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1.0 indicates that the investment’s price will move in lock-step with the market. A beta of less than 1.0 indicates that the investment will be less volatile than the market, and, correspondingly, a beta of more than 1.0 indicates that the investment’s price will be more volatile than the market. For example, if a fund portfolio’s beta is 1.2, it’s theoretically 20% more volatile than the market.

Performance period is 29/12/2023 to 30/09/2024

Market Cap	SEBI Definition
Small Cap	251st company onwards in terms of full market capitalization
Mid Cap	101st – 250th company in terms of full market capitalization
Large Cap	1st – 100th company in terms of full market capitalization

Source: Investopedia, Wikipedia and MFI Explorer

Kotak Mahindra Bank Limited, AMFI Registered Mutual Fund Distributor, ARN 1390

SEBI Equity MF Categories	Definition	Consolidated Equity MF Categorization
Large Cap	min 80% in large caps	Large Cap
Index Funds	Min 95% in securities of a particular index (which is being replicated/ tracked)
ETFs (other than gold)	Min 95% in securities of a particular index (which is being replicated/ tracked)
Large & Mid Cap	min 35% in large caps, min 35% in mid caps	Large & Mid Cap
Mid Cap	min 65% in mid caps	Mid & Small Cap (Mid Cap/Small Cap)
Small Cap	min 65% in small caps
Multi Cap	min 65% in equity	Multi Cap (Multi Cap/ Value/ Focused/ Dividend Yield/ Contra)
Dividend Yield	min 65% in Div Yield cos
Value	min 65% in Value strategy cos
Contra	min 65% in Contra strategy cos
Focused Fund	max 30 stocks, min 65% equity
Sectoral / Thematic	min 80% in that sector / theme	Sectoral / Thematic
ELSS	min 80% in equity	ELSS

SEBI Hybrid MF Categories	Definition	Consolidated Hybrid MF Categorization
Equity Savings	Minimum 65% in equity and minimum 10% in debt.	Equity Savings
	Minimum hedged & unhedged to be stated in the SID
Dynamic Asset Allocation or Balanced Advantage	Investment in equity/ debt that is managed dynamically	Balanced Advantage  (Balanced Advantage OR Dynamic Asset Allocation)
Aggressive Hybrid Fund	65-80% in equity: 20-35% in debt	Aggressive Hybrid

SEBI Debt MF Categories	Definition	Consolidated Debt MF Categorization
Overnight Fund	Securities having maturity of 1 day	Liquid (Overnight, Liquid)
Liquid Fund	Securities with maturity of upto 91 days only
Money Market Fund	Money Market instruments having maturity upto 1 year	Money, Ultra & Low Duration (3 -12M) (Ultra Short Duration/Low Duration/ Money Market/Floater)
Floater Fund	Minimum 65% in floating rate instruments
Ultra Short Duration Fund	Macaulay duration of the portfolio is between 3 months-6 months
Low Duration Fund	Macaulay duration of the portfolio is between 6 months-12 months
Short Duration Fund	Macaulay duration of the portfolio is between 1 year-3 years	Short  Term (1-3 Yrs) (Corporate Bond/ Banking & PSU/Short Duration)
Corporate Bond Fund	Minimum 80% in AA+ or above rated bonds
Banking and PSU Fund	Minimum 80% in PSU, PFI bonds
Medium Duration Fund	Macaulay duration of the portfolio is between 3 year - 4 years (1-4 years*)	Medium & Credit Risk (Medium Duration/Credit Risk)
Credit Risk Fund	Minimum 65% in AA or lower rated bonds
Dynamic Bond	Investment across duration	Dynamic Debt (Medium to Long Duration/ Dynamic Bond/Gilt)
Gilt Fund	Minimum 80% in G-Secs
Medium to Long Duration Fund	Macaulay duration of the portfolio is between 4 years - 7 years (1-7 years*)
Long Duration Fund	Macaulay duration of the portfolio is greater than 7 years	Long Duration (7 Yrs+)
Gilt Fund with 10 year constant duration	G-Secs having a constant maturity of 10 years

*in case of adverse market conditions

Source: Investopedia, Wikipedia and MFI Explorer

Kotak Mahindra Bank Limited, AMFI Registered Mutual Fund Distributor, ARN 1390