Tracking Errors

Modified on Fri, 21 Jun 2024 at 04:24 PM

What is a tracking error/tracking difference?

Tracking difference (TD) is a metric used to measure the difference between the benchmark return and your scheme returns on an absolute basis.

Tracking error (TE) is defined as the difference between returns from the Index fund to that of the Index.

The formula for the computation of TE is 

Standard Deviation (YTD) * Square root of 252 (no.of trading days)

Where can I see the tracking error?

The Tracking error of your scheme(s) shall be disclosed on the website

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article