What is standard deviation?
Standard deviation is the classic measure of volatility - how far a fund’s returns typically stray from their own average, in either direction. It doesn’t distinguish good swings from bad ones; that’s what downside deviation (used in the Sortino Ratio) is for.
σ = √( Σ(Ri − R̄)² / N )
Lower means a smoother path to the same destination - not automatically a “better” fund, just a steadier one.
Real comparison across 6 funds
CHART
3Y Annualized Std Deviation - 6 real funds
All 6 funds sit in a fairly tight 9.7%-12.5% band - none of these are extreme outliers on volatility alone.
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 Standard deviation alone doesn’t tell you if the ride was worth it - always pair it with a return figure (like Sharpe Ratio) rather than judging volatility in isolation.
METHODOLOGY Annualized standard deviation of daily returns over a trailing 3-year window as of 2026-08-31. Data: Punji risk analytics. Not investment advice.