Beta in mutual funds: how much it moves with the market

Beta measures how sensitively a fund moves relative to its market benchmark. The market itself has a beta of 1.0.

How to read it

• Beta = 1 — the fund tends to move in line with the market. If the market rises 10%, so does the fund (roughly).
• Beta > 1 (e.g. 1.3) — more volatile than the market; it amplifies both gains and losses.
• Beta < 1 (e.g. 0.8) — less volatile; it cushions falls but also lags in rallies.

How to use it

Beta tells you about market risk, not skill. A conservative investor may prefer a beta below 1; an aggressive one chasing upside may accept above 1. Pair beta with alpha: ideally you want decent alpha without taking on excessive beta.

→ Find a fund's beta under "Risk Analysis" on its detail page.