Karma ratio indicates the ratio of the fund's rate of return to the maximum withdrawal in the fund stage, which can also be called the unit withdrawal rate.
In fact, the calculation formula is very simple, that is, dividing two numbers. If the net value of the fund increases by 15% in a statistical interval, and the withdrawal from the highest point to the lowest point is commonly known as the maximum withdrawal of 20%, then its Calmar ratio is 0.75.
Example of Callmar ratio:
1, E Fund's steady income, the meticulous work of Hu Jian, the star fund manager of E Fund, began to manage from 20 12, with an annualized performance of 1 1.07%, with a maximum withdrawal of 6.36%. Karl Marby is 1.74.
2. Investing in the stock fund managed by Du Meng, the star fund manager, invested in Morgan Emerging Power, with an annualized rate of return of 13%, but the retracement was huge, with a maximum retracement of 54% and a Karma ratio of only 0.25.