Last Updated on October 8, 2023 at 1:40 pm
“Which is the best way to compare my mutual fund with other funds from the same category?”. The best way would be to not compare the performance of the funds that you hold with others. The second best way would be to use the exact dates in which you invested and only those dates for the comparison. The third best way is to use this free tool that allows you to compare the performance of all funds in a category from the date in which you started investing in one of them.
Before we begin, my book with PV Subramanyam, You Can Be Rich Too is available at 50 discount (Rs. 198) for short periods of time this month as it was among the top 25 bestsellers in the last 3 months. Grab it now!
A disclaimer that this is not a sheet that I am proud of and will not be using it for my portfolio analysis. I prefer to only compare a fund with an appropriate benchmark. These days, I don’t even do this. The only reason I made this sheet is because
(a) I believe that if at all one wants to compare, this tool offers a better way than comparing performance for the last year, last 3Y, 5Y etc. For the record, such data (last 1,2,3,4,5,6,7,8,9Y, both lump sum and SIP return) is published here monthly.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
(b) Many times, investors questions their choices and worry if they would have got better returns had they invested in other funds. This tool might put their minds at ease. On the other hand, it could make them worried as well (much higher probability?)!
So let me repeat, nothing beneficial can come out of a peer comparison.
How to use this tool
Well, don’t use it! If you still wish to:
step 1: identify the Value Research category your fund is listed under
step 2: choose this category in the sheet
step 3: run a small macro to select all funds in this category (this will work only Macro enabled Windows Excel 2007 and above installations).
step 4: choose the fund you have invested in. This will be the reference for upside and downside captures (see below).
step 5: Run the comparison macro. This will take anywhere between 15-20 minutes even on a reasonably fast machine. So run this accordingly. Maybe you can run this, grab a cupp and head over to freefincal to read more about Hwhy you should ignore mutual fund star ratings
The results should be fairly straightforward to interpret. From the start date that you have entered to the last business date, SIP and lump sum returns are calculated.
During this period, monthly returns of each fund is computed. Some months your fund would have given a negative return and some months a positive return.
Downside capture is a measure of how much of your fund’s losses other funds in the category captured. So a downside capture of 80% implies that a fund has overall captured only 80% of your fund’s losses. So lower this number, the better.
Upside capture is a measure of how much of your fund’s gains other funds captured. If a fund has an upside capture of 120%, then it means a fund has captured 20% extra returns when the periods over which your fund have a positive monthly return were considered. Higher the upside the better.
Capture ratio = Upside capture/ Downside capture. A value greater than 1 is considered “good”, it is important to consider the individual upside and downside values as well. A fund with low upside and high downside can result in high capture ratio.
As investors, we need a reasonable balance between risk (downside) and reward (upside).
Read more: Simplify Mutual Fund Analysis with Upside/Downside Capture Ratios.
Input Page
HDFC Top 200 Fund
Regardless of its current star rating, from 17 Aug 2013, only a few funds have outperformed Top 200 and no fund has a better upside capture. It pays to stay invested in this fund over the long term.
Franklin India Blue Chip Fund
From 17th Aug 2007, Franklin Blue Chip has a great record.
HDFC Equity
From 17th Aug 2014, HDFC Equity has fared poorly if you make a peer comparison.
IDFC Premier Equity
From 17th Aug 2014, IDFC Premier Equity too has not done well.
Please note: Both a positive result or a negative result mean little. It is based on past performance. I urge you not to take either result too seriously and I certainly will not be responsible for any investment decision that you make.
I prefer to review my funds with respect to my expectations and occasionally with respect to benchmark returns.
Download the freefincal mutual fund peer comparison tool march 2017
Will not work on Mac. Needs windows Excel with macros enabled. Let me know if you run into issues.
Ask Questions with this form
Each week I try and answer generic questions from readers. Use this form to ask your question and I will respond to them next week. I welcome tough questions. Please do not ask for investment advice or product suggestions. Before asking, please search the site if the issue has already been discussed. Thank you.
[contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]
New Delhi DIY Investor Workshop April 23rd 2017
Register for the New Delhi DIY Investor Workshop April 23rd 2017
You Can Be Rich Too With Goal-Based Investing
Happy to announce that my book with PV Subramanyam has been selected as part of Amazon Best Reads Mar 2017. now 50% off Thank you for your support and trust. If you have not yet got the book, check out the reviews below and use the links to buy.
Reader Quotes:
Gift it to your Friends and Relatives whom you care more. Already follower of Pattu and Subra’s forum. Ordered 4 more copies to give gift to my friends and eagerly waiting to read
The best book ever on Financial Freedom Planning. Go get it now!
Your first investment should be buying this book
The (nine online) calculators are really awesome and will give you all possible insights
Thank you, readers, for your generous support and patronage.
Amazon Hardcover Rs. 199. Now 50% off.
Kindle at Amazon.in (Rs. 307)
Google Play Store (Rs. 307)
Infibeam Now just Rs. 307 24% OFF.
If you use a mobikwik wallet, and purchase via infibeam, you can get up to 100% cashback!!
Bookadda Rs. 344. Flipkart Rs. 359
Amazon.com ($ 3.70 or Rs. 267)
Google Play Store (Rs. 244.30)
- Ask the right questions about money
- get simple solutions
- Define your goals clearly with worksheets
- Calculate the correct asset allocation for each goal.
- Find out how much insurance cover you need, and how much you need to invest with nine online calculator modules
- Learn to choose mutual funds qualitatively and quantitatively.
More information is available here: A Beginner’s Guide To Make Your Money Dreams Come True!
What Readers Say
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
About The Author
Dr 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. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! 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 you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our 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 is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will 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 and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.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 into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and 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 300 (instant download)