Mutual Fund Analyzer: Fund A vs. Fund B

Published on / By M. Pattabiraman Twitter: @pattufreefincal / 27 Comments
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Published: May 14, 2016 at 6:00 am

Last Updated on January 12, 2023 at 10:07 pm

Ever wondered which to choose between Franklin Blue Chip and ICICI Blue Chip? Between HDFC Balanced and ICICI Balanced? Here is a mutual fund analyzer that goes beyond mere return comparison. It can be used each time you wish to make a choice or to compare how your fund did relative a ‘hot fund’ everyone is talking about!

Personally, I do not engage in such comparison and do not recommend them. However, many investors do want to do such a comparison. Therefore, I felt it is better to modify the Mutual Fund Risk and Return Analyzer and compare two funds, call them Fund A  and Fund B on a risk-adjusted basis.

Sometimes a holistic view of risk and reward could investors that their holdings and choices are not so bad after all (compared to that ‘hot fund’!).

I had recently used this tool to compare Tata Balanced Fund vs. HDFC Balanced Fund. The tool was first published in Aug 2012. I have now modified the sheet to extend calculations up to 10 years.

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Here is a comparison between Franklin Blue Chip and ICICI Blue Chip to illustrate the features.

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The input sheet. Fund A = Franklin Blue Chip and Fund B = ICICI Focussed Blue Chip
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The results page listing SIP and lump sum returns
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Returns plot. Notice Franklin has done well recently
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The risk-return score which uses a total of 20 metrics (2 of them SIP and lump sum returns) to gauge funds on risk-adjusted basis. A score of higher than 50% means fund A has done better.
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Upside and downside capture analysis. If upside capture >100% fund A has beat fund B when fund B returns were positive. If downside capture <100% then fund A has beat fund B when fund B returns were negative.

Read more: Simplify Mutual Fund Analysis with Upside/Downside Capture Ratios

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NAV movement in the last two years with Ulcer index. Higher ulcer index is more stress to investors!

This tool is now part of the freefincal investor circle. Join the investor circle!  Enjoy a 50% discount for a limited time and pay only Rs. 3000 with discount code circle50. You can get lifetime access to several unique tools, discussion forums, and bug fixes.