Risk measures
What is beta?
Beta measures how sensitive a fund has been to moves in its benchmark. A beta of 1 moves with the market; above 1 swings more, below 1 swings less.
How it works
It is worked out from past returns, usually over three years. A defensive fund may have a beta of 0.8; an aggressive one 1.2.
Example
A fund with a beta of 1.2 would, on past behaviour, be expected to fall about 12% when its benchmark falls 10%, and rise about 12% when it rises 10%.
Keep in mind
- Beta is backward-looking and can change.
- It measures market sensitivity, not total risk.
Questions people ask
Is a low beta fund safer?
It has swung less with the market in the past, which may continue, but it is not a guarantee.
Where do I find a fund's beta?
In its monthly factsheet.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.