Here are two simple mutual fund screeners to automatically create a shortlist from a chosen mutual fund category. I have combined the monthly screener data – 3,5,7 year performance consistency and 1,2,3,4,5,6,7,8,9,10,11Y SIP and lump sum data to create this screener. Do give this a go and let me know what you think.
Why Did I Do This?
1: I wanted to present the monthly data (check out the June data and archives) in a user-friendly way.
2: I am trying to build a free, open-source robo advisory template. This screener (rather the one updated with your feedback of the current version) will form an important of that portal in presenting users with a shortlist of equity funds from a category to choose from. I wanted to complete template and send it for beta-testing by the end of this month, but it might take a bit longer than that.
How is screening done?
The Excel file has 3 screens.
Screen 1 and Screen 2 are used in the Excel macro to filter funds. Do not touch them if you dont know how to use Excel data filters.
Screen 3 is for you to play with.
Screen1 : only funds that have returned at least 10% for the last 1,2,3,4,5,6,7,8,9,10,11 year lump sum and SIP returns.
This may seem like a broad screen at first sight, but you will notice that only 74 out of 303 equity funds considered (more will be added in coming months) fit this bill.
Screen 2: Only funds that have beat the chosen category benchmark (see list below) at least 50% of every possible 3Y ,5Y and7Y periods between April 3rd 2006 to June 2nd 2017 make the shortlist – 87/303. This is a better screen than the one above as multiple returns are calculated.
The macro in the index sheet (see screenshot below) will (after you choose the required category) will apply screens 1 and 2 and then find funds which are common to both. For some categories, this would a nice shortlist – less than 5 funds.
Screen 3: is not part of the macro and can be used as desired.
I have left out the downside capture (how much the fund lost when the index gave negative returns) and the upside capture (how much the fund gained when the index gave positive returns) from the screening process.
So this means the above screening is only on the basis of reward and consistency in reward and not risk. Since selection a mutual fund is hardly as important as knowing how to review its performance, I think this is decent enough for an investor who understands asset allocation for a goal and the importance of category choice.
I shall however add rolling downside and upside capture feature to this screener next month. I have lost faith in metrics like standard deviation, alpha, beta, gamma, R-squared etc as they are plain invalid – just because something is easy to calculate does not make it useful. The only trouble is to identify better alternatives. This is an ongoing journey for me.
You can manually change fund categories as shown below.
Give this a try and let me know your feedback so that I can improve it.
Ask Questions with this form
And I will respond to them in the coming weekend. I welcome tough questions. Please do not ask for investment advice. Before asking, please search the site if the issue has already been discussed. Thank you. PLEASE DO NOT POST COMMENTS WITH THIS FORM it is for questions only.
[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]
Thank you for the wonderful reviews of GameChanger!
My second book, Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you want, co-authored with Pranav Surya is now available at Amazon as paperback (₹ 199) and Kindle (free in unlimited or ₹ 99 – you could read with their free app on PC/tablet/mobile, no kindle necessary).
You can Be Rich Too with Goal-Based Investing
is my first book with PV Subramanyam. It helps you ask the risk questions about money, seek simple solutions and find your own personalised answers with nine online calculator modules.
The book is available at:
Amazon Hardcover Rs. 271. 32% OFF
Infibeam Now just Rs. 270 32% OFF. If you use a mobikwik wallet, and purchase via infibeam, you can get up to 100% cashback!!
Flipkart Rs. 279. 30% off
Kindle at Amazon.in (Rs. 90.74 74% OFF) Read with free app
Google PlayRs. 90.74 Read on your PC/Tablet/Mobile
Now in Hindi!
Pre-order the Hindi version via this link
Connect with us on social media
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via: Feedburner
- We are also on Google PlusandPinterest
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 youngearner
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)