How to Examine a Mutual Fund’s Fundamentals

Just like how analysts like to measure a company’s stock via the price to earnings ratio, price to book ratio, earnings per share growth, Beta, market capitalization & volume, dividend mutual funds can also be measured in the same manner. i) Price to Earnings Ratio (P/E) The price to earnings ratio of a fund tells us how expensive this mutual fund is relative to the earnings of its holdings. Just like a stock’s P/E ratio, this metric is important in determining the valuation of a fund & its net asset value.