The number every pro looks at and most retail investors never do
Sharpe Ratio
Allcap Multi Asset
1.79
CAGR 43.57 percent . 5Y backtest
Sharpe Ratio
Nifty 50 TRI
0.79
CAGR 10.68 percent . same window
CAGR shows the size of the win. Sharpe shows whether the win was earned cheap.
One number did 4x the return of the other. The risk-adjusted gap is wider. Most retail investors never look at the second number.
Swipe . the formula and what it actually means →