Last Updated on August 16, 2019
Here is this month’s screener data of how consistent a fund has performed with respect to a category benchmark over every possible 3-year, 5-year and 7-year investment duration since 3rd April 2006. 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. Screener data for October 2016 can be found here.
* Rolling returns for some funds could not be calculated. The list of all such funds can be found in the screener file.
Mutual Fund Performance Consistency Score
Rolling returns are a simple way to estimate how consistency a fund has outperformed a benchmark. Three-year rolling returns have been considered. For example, suppose 1000 such 3Y returns are available for the fund and 800 such returns for the benchmark. Here is an example:
We ask how many times has the fund got a better 3Y return than the benchmark. Suppose 500 such fund returns are higher, the performance consistency score is computed as
= 500/800 = 63%.
The minimum of (1000 and 800) = 800 is used in the denominator.
Higher the consistency score, the better the fund has performed with respect to the benchmark.
The simplest way to understand the efficacy of this method is to consider the performance score of well-known poor performers – certain funds from JM Mutual or LIC Nomura – and check their consistency score. It would be quite low.
I think any score about 60% is reasonable and above 70% quite good. Less than 50% for the 3Y rolling returns is probably a warning sign to monitor closely.
An excel sheet in which funds can be screened for consistency across categories or per category is attached below. The same benchmarks as the November 2016: List of Equity Mutual Fund Returns and Up/Down Capture Ratios are used.
| Category | Category Code | Benchmark |
| Bankgin | EQ-BANK | BSEBankex-TRI |
| FMCG | EQ-CG | BSEfmcg-TRI |
| Infrastructure | EQ-INFRA | BSEInfra-TRI |
| International | EQ-INTL | Nifty-TRI |
| IT | EQ-IT | BSEIT-TRI |
| Large cap | EQ-LC | BSELargeCap-TRI |
| Mid-cap | EQ-MC | BSEmidcap-TRI |
| Multi-cap | EQ-MLC | BSE200-TRI |
| Others | EQ-OTH | Nifty-TRI |
| Pharma | EQ-PH | BSEhealthcare-TRI |
| Small Cap | EQ-SC | BSEsmallcap-TRI |
| ELSS | EQ-TP | BSE200-TRI |
| Balanced | Balanced | Balanced Index |
Using the Mutual Fund Screener
The screener sheet in the file contains all entries. To display only one or two categories, the user can click on the grey square (red oval below), then uncheck “select all: and then select the categories required. The screener is easy to use with Excel’s data filters.
If the no of rolling return entries is less than 500 then the fund is quite young to be judged. Higher the entries, the better.
Select a cut off for the consistency score: Above 60% or above 70% as mentioned above and check the funds which have done well. You can use this in combination with the Sep 2016 returns listing.
User Guide
You Can view additional guides for
“How to select an equity mutual fund in 30 minutes” based on the Mutual Fund Screener Version 6.0 and Freefincal Mutual Fund Screener with SIP Returns and the freefincal Excel Stock Screener here:
User Guide: how to use the freefincal mutual fund and stock screeners
Do let me know if you any feedback to make this better.
Download the December 2016 Mutual Fund Performance Consistency Screener file
We now publish both equity fund and debt fund (+ hybrid fund) screeners each month!
Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video! ⇐ More than 415 investors and advisors use this!
Unlock the secrets of successful financial advisors and entrepreneurs with our new course!
My new book for kids: “Chinchu gets a superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Join our courses in exclusive Facebook Groups!
- 550+ members are now part of our new course: How to get people to pay for your skills! (watch 1st lecture for free). Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show how to achieve by showcasing your skills and building a community that trusts you and pays you!
- Goal-based portfolio management! Join 2220+ members and get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free! One-time payment of Rs. 3000 only. No recurring fees! Life-long access to videos (10+ hours content) in an exclusive Facebook Group! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About the Author
M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations based on money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements, write to pattu [at] freefincal [dot] comAbout freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)Free android apps
- All calculators from our book, “You can be Rich Too” are now available on Google Play!
- Install the Financial Freedom App! (Google Play Store)
- Install Freefincal Retirement Planner App! (Google Play Store)
- Find out if you have enough to say "goodbye" to your employer (Google Play Store)