Investment Consultant Interview Questions and Answers

Look at ratios like expense ratio, Sharpe ratio, alpha, beta, and standard deviation.

• Expense ratio: measures the cost of managing the fund

• Sharpe ratio: measures risk-adjusted returns

• Alpha: measures the fund's performance compared to its benchmark

• Beta: measures the fund's volatility compared to the market

• Standard deviation: measures the fund's volatility

Mutual funds can be evaluated based on their past performance, expense ratio, fund manager's experience, and investment objective.

• Check the fund's performance over the last 3-5 years

• Look for consistency in returns and compare with benchmark index

• Consider the expense ratio and other fees associated with the fund

• Evaluate the fund manager's experience and track record

• Understand the investment objective and risk profile of the fund

Time-Weighted Rate of Return (TWRR) vs Money-Weighted Rate of Return (MWRR) vs Yield to Maturity (YTM) are different performance metrics used in finance.

• TWRR measures the compound rate of growth in a portfolio, unaffected by cash flows.

• MWRR takes into account the timing and amount of cash flows in and out of the portfolio.

• YTM is the total return anticipated on a bond if the bond is held until it matures.

• TWRR is more suitable for evaluating the performance of investment manage...read more