The freefincal Equity Mutual Fund Performance Screener November 2018 edition is available for download. Use this screener file to easily find best performing equity funds that have consistently outperformed category benchmarks/indices with good downside protection (better performance when the index is down) and/or upside performance (better performance when the index is up). This screener is meant for DIY investors to select a mutual fund (not review existing holdings). The “PlumbLine" is a set of handpicked mutual funds intended for the new investor to quickly get started when they use the Freefincal Robo Advisory Software Template.
Updates for November 2018
- Re-scanned value research to include funds missing in previous editions
- Provide two screeners (1) with normal benchmarks and (2) with freefincal benchmarks.
- Included the Nifty blend index (50% Nifty 50 + 50% Nifty Next 50) as a benchmark
What does this Equity Mutual Fund Performance Screener cover?
It gives you three outputs:
- Rolling return outperformance consistency That is over every possible 1Y,2Y,3Y,4Y, 5Y periods, the fund returns are compared with category benchmark returns. Higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns and the fund has beaten the benchmark 675 times, the consistency score will be 675/876 ~ 77%.
- Upside performance consistency over 1Y,2Y,3Y,4Y, 5Y: Higher the better. A score of 70% means, 7 out of 10 times, the fund performed better than the category benchmark when the benchmark was moving up. This is a measure of reward.
- Downside performance consistency over 1Y,2Y,3Y,4Y, 5Y: Higher the better. A score of 60% means, 6 out of 10 times, the fund performed better than the category benchmark when the benchmark was moving down. This is a measure of risk protection.
When to use this mutual fund screener
I recommend using this file only when you are on the lookout for a new fund after completing the following steps: Define need and duration —-> Decide asset allocation (use this tool) —-> Decide product category (use this guideline for mutual funds) —-> Then apply this screener for equity funds. Since the debt mutual fund space is continually shifting and a qualitative search is necessary, I believe it is dangerous to build a debt mutual fund screener and therefore will not. If you open the screener file, you see column headings such as this. You know the fund category; benchmark; Fund name; no of 1Y returns of the benchmark(index); no of 1Y returns of the fund; no of times the fund 1Y return is above index 1Y return; the 1Y rolling return consistency; upside performance consistency and downside protection consistency. These columns are repeated for 2Y,3Y,4Y and 5Y. Now you can screen by filtering out funds that have return outperformance consistency of >=70% a downside protection consistency >= 70% and so on. You can do this manually with the excel filter buttons on use the macro buttons as shown below.
Normal Benchmarks Used
These are benchmarks that are closest to the fund type and are used by many funds in each category.
|Infrastructure||EQ-INFRA||NSE Infra -TRI|
|Large-cap||EQ-LC||Nifty 100 TRI|
|Value Oriented||EQ-VAL||Nifty 100 TRI|
|Small Cap||EQ-SC||Nifty Smallcap 50 TRI|
|Multi-cap||EQ-MLC||Nifty 200 TRI|
|Large and Midcap||EQ-L&MC||Nifty 200 TRI|
|ELSS||EQ-TP||Nifty 200 TRI|
|Hybrid Aggressive (balanced)||HY-AH||BSE Balanced Index|
The categories are the same as that used by Value Research. BSE Balanced index use to benchmark equity-oriented balanced fund is one of my own making: A new & accessible benchmark for balanced mutual funds
Nifty Smallcap 50 is being used for the first time to be in-line with the idea of a “normal” benchmark. As regards Nifty 100, see: Will large-cap mutual funds struggle to beat Nifty 100 Equal Weight Index?