Alpha (Jensen's alpha)
Return above what the scheme's market sensitivity (beta) would have predicted.
Formula
alpha = R_fund − [R_f + β × (R_benchmark − R_f)]
R_f is the risk-free assumption (6.5%), β is the scheme's beta to its benchmark, all annualised over 36 months.
How MFIC calculates it
From 36 month-end returns of the scheme and of its benchmark proxy. The benchmark is an index fund's NAV tracking the category's broad index, because licensed total-return index data is not connected; see the methodology.
How to read it
Positive alpha means the scheme returned more than its beta-adjusted benchmark exposure would suggest over the window; negative means less.
Limitations
Depends heavily on the benchmark chosen and on one 36-month window. Because the proxy index fund already bears its own costs, alpha against it is slightly flattering compared with alpha against the official index.
Alpha (Jensen's alpha) by category today
Spread of alpha (jensen's alpha) across Regular-plan schemes in each category, calculated by MFIC from AMFI NAVs as of 1 Oct 2026. The middle half of schemes falls between the 25th and 75th percentiles.
Use it in MFIC
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Related: Beta · Information ratio · Tracking difference and excess return · Methodology