This document compares the Sharpe Ratio and Information Ratio as measures of fund performance. The Sharpe Ratio compares a fund's returns to the returns of a risk-free benchmark, while the Information Ratio compares the fund's returns and risk to a relevant market index. This difference is illustrated through an analogy comparing cricket players' batting averages and risks to different benchmarks. The Information Ratio shows the excess returns of a fund compared to the market, while the Sharpe Ratio shows returns relative to no risk.

13. Hope you now know the difference In case of any query please email to pradyumn@tataamc.com