Mutual Fund Rolling Returns Analysis with Nifty Strategy Indices

Last Updated on

Rolling returns calculators provide a simple, easy to understand visual representation of how consistently a mutual fund has outperformed its benchmark. The freefincal mutual fund lump sum and SIP rolling returns calculators now include six nifty strategy  indices (smart beta) for analysing mutual fund performance.

As seen in a recent series of posts, Nifty strategic indices are tougher benchmarks for mutual funds to beat. Therefore, using these benchmarks would be a better way to separate the wheat from the chaff.  A couple of these indices were also studied in detail:

A total of 53 benchmarks are now available for comparison.These include Nifty TRI, Sensex TRI, BSE 200 TRI, BSE 500 TRI,Nifty, CNX 100, CNX Mid Cap, CNX 500, Sensex, BSE Small Cap, Mid Cap, BSE 100,200, 50 etc.

TRI refers to total returns index. That is the index has been calculated with dividends reinvested.

The user needs to obtain them manually from the S&P website (updated up to 4th April 2016). Links for updating each index is provided in the sheet.

The TRI indices are stored in the sheet while other indices are downloaded from Moneycontrol.

The six strategic indices are:

  1. NV20 – 20 value stock from within Nifty.
  2. NQ30 – 30 quality stocks from NSE listing.
  3. Alpha50 – 50 alpha generators from top 300 NSE stocks (market cap)
  4. NDivOpp – Top 50 dividend yield stocks from top 300 NSE stocks (market cap)
  5. NLV50 – 50 least volatile stocks from top 300 NSE stocks (market cap)
  6. NGS15 – Top 15 growth stocks from top 50% market cap of all sectors with PB and PE greater than the Nifty.

The strategy indices also need to updated from the NSE site (updated currently up to June 30th 2016).

Benchmark recommendations:

Large Cap: Nifty Value 20 (NV20) and NIfty TRI

Mid-cap: Nifty Alpha 50 (Alpha50)  and BSE 200 TRI and Nifty Mid-cap

Multi-cap: Nifty Next 50 (Jr), Nifty Low Volatility 50 (NLV50), Quality30 (NQ30) or BSE 500 TRI.

Div yield funds: Nifty Div Opp 50 (NDivOpp)

Small cap: BSE Small cap

Stock portfolio or sector fund portfolio: Nifty Growth 15 (this cannot be compared with this sheet!).

Here are some examples of 3-year rolling returns

Large Cap

nifty-strategy-index-rolling-returns-1

Franklin Blue Chip vs Nifty Value 20

Mid-cap

nifty-strategy-index-rolling-returns-2

Mirae Emerging vs Alpha 50

Multi-cap

nifty-strategy-index-rolling-returns-3

Quantum Long-term equity vs Nifty Low volatility 50

Small-cap

nifty-strategy-index-rolling-returns-4

DSP Microcap vs Nifty Growth 15.

Note: Choice of the benchmark is crucial in determining outperformance or underperformance. It is possible that the choices made above may be different from the investment strategy of the fund.

However, if an actively managed mutual fund has trouble beating an algorithm based index constructed with a simple strategy, it makes you wonder!

What do you think of the above results?

Version 5:  Download the multi-index (lump sum) rolling returns calculator June 2017

Download the mutual fund lump sum rolling returns calculator July 2016

(Win Excel 2007 and up, macros and data connections to be enabled)

Download the mutual fund SIP rolling returns calculator July 2016

(Win Excel 2007 and up, macros and data connections to be enabled)

Do share if you found this useful

Create a "from start to finish" financial plan with this unique open-source robo advisory software template


 Don't like ads but want to support the site? Subscribe to the ad-free newsletter! 
You will get the full post-ad-free delivered to your inbox for Rs. 3000 a year. Follow this link to read the terms and sign up! 


About the Author M Pattabiraman author of freefincal.comM. Pattabiraman is the co-author of two books: You can be rich too with goal based investing and Gamechanger. “Pattu” as he is popularly known, publishes unbiased, promotion-free research, analysis and holistic money management advice. Freefincal serves more than one million readers a year with numbers based analysis on topical issues and has more than a 100 free calculators on different aspects of insurance and investment analysis, including a robo advisory template for use by beginners. Contact information: freefincal {at} Gmail {dot} com He conducts free money management sessions for corporates (see details below). Previous engagements include World Bank, RBI, BHEL, Asian Paints.

Content Policy

Freefincal has original unbiased, conflict-of-interest-free,  topical reports, reviews, commentary and analysis on all aspects of personal finance like mutual funds, stocks, insurance etc. All guest authors and contributors to the site also do not have any conflict of interest. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. No promotional content We do not accept sponsored posts and link exchange requests from content writers and agencies. This is our privacy policy Our website is non-profit in nature. The revenue from the advertisement will only be used for hosting charges, domain registration charges, specific plugins necessary for traffic growth and analytics services for search engine optimisation.
Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

Connect with us on social media


Do check out my books


You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingMy first book is meant to help you ask the right questions, seek the right 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 WantGamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantMy second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep 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 ₹199 (instant download)

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

6 Comments

  1. assuming we are comparing funds with their most recommended index, i expected all blue lines to be much higher than red lines

    surprisingly most of them are identical?

    so i am thinking claims of beating benchmarks are bogus because i can choose conveniently whatever i want and claim whatever i want?

Leave a Reply

Your email address will not be published. Required fields are marked *