What is the Sharpe Ratio?
Two funds can post the same return while one took a much bumpier ride to get there. Sharpe Ratio answers “was the extra risk worth it?” by dividing excess return by volatility.
Sharpe = (Rp − Rf) / σp
Higher is better - more return earned per unit of volatility taken.
Real comparison across 6 funds
CHART
3Y Sharpe Ratio - 6 real funds
Same 3-year window, computed against each fund's own benchmark.
Funds compared: Parag Parikh Flexi Cap · DSP Value · ICICI Prudential Value · SBI Focused · Parag Parikh ELSS Tax Saver · SBI Multicap
WHAT THIS MEANS FOR YOU A fund with a lower headline return but a higher Sharpe Ratio delivered a smoother ride per unit of return - don’t compare two funds on CAGR alone without checking this.
METHODOLOGY Computed over a trailing 3-year window as of 2026-08-31, using each fund’s own benchmark for the risk-free-adjusted excess return. Data: Punji risk analytics. Not investment advice.