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 zerodhafundhouse.com.
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