![Understanding smart beta funds and how they can boost index returns Understanding smart beta funds and how they can boost index returns](https://i1.wp.com/www.livemint.com/lm-img/img/2024/09/05/1600x900/g1722bec166f2f6868a87d329bfa73437c29137795603d15974b1a3f6e3195d0def2af2b15f9aebcdeda6dcf5dccc328f6f4e14c14581220260892427a75a38fe_1280_1725527437472_1725527445281.jpg?w=600&resize=600,400&ssl=1)
Understanding smart beta funds and how they can boost index returns
Source: Live Mint Beta measures the volatility, or systemic risk, of a security or portfolio compared to the market. For instance, a company operating in a cyclical industry may carry some specific risks. The company’s stock, therefore, may be more volatile than the overall markets and hence have a high beta. The same may be…