Mutual Fund Analyzer: Fund A vs. Fund B

Published: May 14, 2016 at 6:00 am

Last Updated on

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.

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!

Read more: Mutual Fund Analysis With the Ulcer Index

Latest version: Download the Fund A vs Fund B analyser (May 2016)

Fund A vs. fund B risk-return analyser (old version) (aug 2014)

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