Standard deviation

The standard deviation is a statistical value that measures the dispersion of values around their mean:

• If the standard deviation is low, it means that the values are very concentrated around the mean,
• If the standard deviation is high, it means that the values are more spread out around the mean.

The standard deviation is often considered a tool to assess the risk and volatility of a fund.

Expressed as a percentage, the standard deviation then measures the dispersion of a fund's returns over a given period. A stable investment (for example, a money market fund) will have a standard deviation close to zero, while a risky equity fund will have a higher standard deviation.