When we wish to choose a mutual fund, it is reasonable to expect it to have beat a benchmark (either the one chosen by the fund house or one representative of its category) consistently - say 8 times out of 10. Can we also impost an additional constraint? Expect the fund to fall lesser than the benchmark? Is that reasonable? Is there any correlation between the two? Here are some insights from the Sep 2017 Freefincal Equity Mutual Fund Outperformance Screener.
Use this screener file to hunt for equity funds that have consistently outperformed category benchmarks with good downside protection and/or upside performance.
Regular readers may be aware that I have been publishing such screener files for about a year now once a month (except Aug 2017, when my hard drive crashed). Up to June 2017, two screener sheets were published - one for outperformance and one for upside/downside performance. From July 2017, they have now been merged into one single file and hopefully is simpler to digest.
The July 2017 Freefincal Mutual Fund Screener is out! This tells you how consistently a fund has beat its chosen category benchmark over 3,5,7 year periods. In addition, its consistency in downside protection and upside performance is also included, along with lump sum and SIP returns over 1,2,3,4,5,6,7,8,9,10,11 year periods.
Announcement: Venkatesh Jambulingam has been kind enough to translate few of my posts in Tamil. Please support his work by sharing it. Latest posts:
Each month, I publish equity mutual fund lump sum and SIP returns; upside capture, downside capture and capture ratios over 1,2,3,4,5,6,7,8,9,10,11 year periods. This can be used as a screener to quickly select mutual funds. This time the period considered is from April 3rd, 2006 to June 2nd, 2017. Pranav Date wrote a code to match the Value Research Fund name and category with appropriate AMFI scheme code. This is a crucial step as it would be very difficult to manually do this for 414 equity funds.
Use this screener datasheet to choose mutual funds that have consistently outperformed a category benchmark over every possible 3,5,7 year periods from April 3rd 2006 to June 2nd 2017. Includes a "how-to-use" video. All equity funds and equity-oriented balanced funds (excluding equity savings funds) have been considered. The method adopted is based on this report: A simple way to measure mutual fund performance consistency.