Rajinikanth in the elite list

Rajinikanth has been adjudged one of the top 50 powerful men in the country by '4 Ps', a business and marketing fortnight magazine. The survey was conducted using various methodologies by ICMR (The Indian council for Marketing Research) and the 4Ps team. Rajinikanth was chosen based on his visibility in the media over the last year, leadership qualities displayed and positive actions taken by actor. Apart from Rajini, music genius A R Rahman has also managed a place for himself in the elite list.

Sharapova, Roddick no longer at Wimbledon

Maria Sharapova was knocked out of Wimbledon by her fellow Russian Alla Kudryavtseva on day four. The number three seed lost 6-2 6-4. Men’s sixth seed Andy Roddick was also shown the door by unseeded Serbian Janko Tipsarevic who beat him 6-7, 7-5, 6-4, 7-6. Second seed Rafael Nadal beat unseeded Latvian Ernests Gulbis 5-7, 6-2, 7-6, 6-3 while defending women's champion Venus Williams beat British number one Anne Keothavong 7-5 6-2.

Spain will confront against Germany in Euro 2008 final

Spain were the hot favorites of the Euro 2008 and rightly so, they reached the finals in style beating Russia 3-0/ Xavi turned home Andres Iniesta's cross after 50 minutes for the first goal. With 17 minutes left, substitute Daniel Guiza converted a pass from Cesc Fabregas. The Arsenal star who came on as substitute for the injured David Villa set up the third goal as well for David Silva to score after 82 minutes.

Jayam Ravi ready for 'Peranmai'

Who would deny if given a chance to act with five gorgeous heroines? What ever may be the case, Jayam Ravi would not miss it. But despite acting with 5 heroines, Jayam Ravi says he had a tough time while filming the movie. The movie is directed by S.P. Jananathan. Jayam Ravi takes a role of a forest officer in this film.

'Get Smart' tops the chart

The most anticipated movie of this summer, Mike Myer’s The Love Guru failed to impress at the box office. But instead, another movie made its name at the top of the charts. It’s Steve Carell starrer, “The Smart’. The movie grossed $39M at the box office and pushed ‘The Love Guru’ to fourth.

Spain ousts Italy

Spain beat the world champions, Italy 4-2 on penalties to reach the semi finals of the Euro 2008. The match was evenly poised as both the teams failed to score at the end of regulation time as well as extra time. The Spaniards were spot on in the penalties knocking Italy out. Spain takes on Russia in the semis.

Wimbledon starts today

Wimbledon is one of the coveted Grand Slams in tennis. I am sure every tennis player in the world would desire to atleast take part in it. Roger Federrer would be the king of grass, but his recent lack of form would surely put him in a lot of pressure. In the women's tennis, Ana Ivanovic would be the favorite. Wimbledon starts today.

Formula and Purpose

Portfolio turnover rate measures the amount of buying and selling done by a fund. It is defined as the lesser of assets purchased or sold divided by the fund’s net assets. The ratio measures how many times the fund manager urns over his portfolio by buying or selling in the market. A 100 percent turnover implies that the manager replaced his entire portfolio during the period in question.

Suitability of Portfolio Turnover Rate

Turnover ratios would be most relevant to analyze in case of equity and balanced funds, particularly those that derive a large part of their income from active trading. However, it would not be appropriate for equity funds with value-based, long-term investment philosophy, or even a growth fund.

Suitability of Expense Ratio

SEBI Regulations regulate this aspect for funds in India. It is important to note that brokerage commissions on the funds transaction are not included in the fund expenses figure while computing this ratio. The expense ratio is most important in case of Bond Funds or Debt Funds. Since such funds performance can be adversely affected in larger proportion of its income is spent on expenses.

The Sharpe ratio

It is a metric for fund performance, which enables the ranking of funds on the risk adjusted basis This measure is based on the comparison of excess return per unit of risk, risk being measured by standard deviation. Excess return is defined as the actual return of the fund less the risk free rate of return.

Formula for the Sharpe ratio is

Si=(Ri – Rf)Si

Where Si is standard deviation of the fund

Ri represents return on fund,

Rf is risk free rate of return

While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund, a low and negative Sharpe Ratio is an indication of unfavorable performance.

Need for Risk Analysis

Risk arises out of the fact that returns do not remain constant, every change in return is a situation of risk for the investor. The simplest way to measure risk is to find out, over a period of time, what is the average return from investing in a fund. Then finding out how the actual returns are distributed around the average return of the fund. If the actual returns earned by investor are close to the average, such a fund is less risky. If the return varies by larger amounts, around the average, the fund is more risky.

Performance of Funds

Total Return is a measure suitable for all types of funds. Performance of different types of funds can be compared on the basis of Total Return. Thus, during a given period, you can find out whether a Debt fund gave better returns than an Equity Fund. It is also more accurate than simple NAV change, because it takes into account distributions during the period. While using Total Return, performance must be interpreted in the light of market conditions and investment objective of the fund.