To find out which is the case, investors should concurrently examine the Annual Performance Graph. Beta is expressed in percentage terms. Beta is only indicative for funds with a relatively high correlation with the index. In other words, the higher R-Squared is, the more relevant the fund's Beta. Default occurs when companies with weak financial situations have difficulty meeting their debt obligations, in which case bondholders face the risk of losing their principal investment.
Default risk is higher during periods of economic recession or slowdown.
It shows the trend of each fund's MER compared to asset size. If MER decreases as a result of asset growth, unitholders are considered to have benefited from economies of scale. On the other hand, a stable or higher MER means that the fund company has reaped the full benefit of economies of scale and has not shared any of this benefit with investors. If two funds have a similar risk level, the fund that produces the higher return is more efficient, because it makes better use of the assumed risk. Estimated Annual Load is defined as the lower of the front-end fee or the redemption fee.