Here is a couple of results from the automated mutual fund screener published last week. The main aim behind creating the tool is to enable users to rapidly shortlist mutual funds in a given category. This post primarily serves as an advertisement for the screener 🙂
Consistent performers (top 15) Equity-oriented Balanced funds
How to interpret results: BirlaSun Life 97 Fund has over the past 12 years always remained in the top 15 when 12,11,10,9,8,7,6,5,4,3,2 and 1 year returns (CAGR corresponding to lump sum investments) are considered. It therefore has a consistency score of 100%.
By the same count, DSPBR Balanced fund has only managed a score of 75%.
The rank (in this case top 15) can be changed by the user. I personally prefer casting a wider net.
Consistent performers (category average) Equity-oriented Balanced funds
How to interpret results: BirlaSun Life 97 Fund has over the past 12 years always beat the category average when 12,11,10,9,8,7,6,5,4,3,2 and 1 year returns (CAGR corresponding to lump sum investments) are considered. It therefore has a consistency score of 100%.
This post is not a recommendation for said fund!
The overlap between results depends on the rank input by the user (top 10 or 15 etc.)
This allows us to quickly create a shortlist.
Here are similar results for Mid and Small-cap funds
Consistent performers (top 15) Mid- and small-cap funds
Consistent performers (category average) Mid- and small-cap funds
What do you make of these results? I personally prefer older funds with a consistent track record. In the mid- and small-cap category, it might be a good idea to consider consistent performers that no one is talking about (therefore small AUM).
- This screener is meant to be used while choosing a new mutual fund and not for performance evaluation.
- The return that you have got will be quite different from the annual returns used here.
- This is a method to create a shortlist and not ch0ose funds.
- The risk associated with consistent performance will have to separately evaluated.
- I suggest that you calculate the downside risk for the funds in your shortlist with this tool: Mutual Fund Downside Protection Calculator and choose a fund with a consistently low downside capture ratio.
- Although the standard past performance disclaimer applies, there is merit in using this method because of these results: Mutual Fund Investing: Does Past Performance Matter?
Connect with us on social media
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via: Feedburner
- We are also on Google Plus and Pinterest
Do check out my books
Get it now. The Kindle edition is only Rs. 199.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You WantMy second book is now only Rs 199 (Kindle Rs. 99) Get it or gift it to a young earner
The ultimate guide to travel by Pranav SuryaThis 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 PhoneAll 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)