Top 5 funds with high alpha

Every mutual fund investor carves for high returns from his investment in mutual funds. Usually, while evaluating the performance of the mutual fund schemes, the schemes that beat their respective benchmark or offer higher returns are considered good performers.

To determine the efficiency of the fund manager and the performance of the mutual fund, alpha is used. Alpha is a statistical tool which measures the difference between the actual returns and the expected returns of the fund. A positive alpha indicates the outperformance of the fund against its beta prediction. That is, in layman's language higher alpha suggests a excess returns over the benchmark.

Higher alpha also suggests the potential of the fund manager as well as the ability of the fund's holdings to provide returns. In the current market situation, where volatility is at its peak one need to invest into the scheme which can atleast assure the performance and investors should evaluate the risk measures before making any investment decision.

So to evaluate potential schemes for the investors, we have analysed various schemes from Equity large-cap, Equity Mid-cap and Equity Small-cap categories to determine the schemes with the higher alpha.

According to our data analysis, below-mentioned schemes are the top 5 schemes with a higher alpha. The fund managers of these schemes have managed to score above their benchmark in the last one year.