Picking up the right fund is one of the most crucial step that will define your investment success and thereby your financial goals. Here are some schemes cherry picked for you based on risk adjusted returns over long term. The methodology is explained below.
|Index & Large Cap||Multi Cap||Mid & Small Cap||ELSS||Balanced & Dynamic Asset Allocation Fund|
|UTI Nifty Index Fund||Motilal Oswal Multi Cap 35 Fund||L & T Midcap Fund||Aditya Birla Sun Life Tax Relief ’96||ICICI Prudential Balanced Advantage Fund|
|Mirae Asset India Equity Fund||Parag Parikh Long term Equity Fund||HDFC Mid-cap Opportunities Fund||DSP BlackRock Tax Saver Fund||Aditya Birla Sun Life Equity Hybrid ’95 Fund|
|ICICI Prudential Bluechip Fund||SBI Magnum Multicap Fund||DSP BlackRock Mid Cap Fund||L & T Tax Advantage Fund||L & T India Hybrid Equity Fund|
|Aditya Birla Sun Life Frontline Equity Fund||Kotak Standard Multicap Fund||Franklin India Prima Fund||Axis Long Term Equity Fund|
Fixed Income Funds for specific Investment Horizon
|Liquid & Ultra Short Duration Funds||Low Duration Funds||Short Duration Funds||Corporate Bond and Credit Risk Funds|
|Aditya Birla Sun Life Liquid Fund||ICICI Prudential Savings Fund||ICICI Prudential Short Term Fund||IDFC Dynamic Bond Fund|
|HDFC Ultra Short Term Fund||SBI Magnum Low Duration Fund||SBI Short Term Debt Fund||L&T Resurgent India Bond Fund|
|L & T Ultra Short Term Fund||IDFC Low Duration Fund||HDFC Short Term Debt Fund||HDFC Corporate Bond Fund|
|Axis Short Term Fund|
Disclaimer: This data has been sourced from an outside agency and Finsafe cannot ensure accuracy at the time of publication and creation and assumes no responsibility for any errors, which despite all precautions may be found herein. It is advisable to consult your investment advisor before investing. Finsafe shall not be liable for loss of income; loss of business profits or contracts; business interruption; loss of the use of money or anticipated savings; loss of information; loss of opportunity, goodwill or reputation; loss of, damage to or corruption of data; or any indirect or consequential loss or damage of any kind howsoever arising and whether caused by tort (including negligence), breach of contract or otherwise.
The Reason Why ….
Picking up the right fund is one of the most crucial step that will define your investment success and thereby your financial goals. That being said, it is also one of the most overwhelming task in the whole process. Which is why, we built a Research Architectural Framework that allows us to scan over 1000 schemes and tailor it down to your requirements. As a first step, we run a quantitative check on the entire fund universe with an objective to rank the schemes from a return & risk perspective.
The table below explains the Research Methodology followed by us in choosing the funds.
|-ve Mean Return||0.00%||5.00%||0.00%||0.00%||5.00%|
|-ve Standard Deviation||0.00%||5.00%||0.00%||0.00%||5.00%|
With a well balanced approach of applying 30% weightage to Rolling Returns & and the rest to Risk adjusted Ratios, and thereby ranking the funds, we have demystified the maze and cleared the mist for you.
Post applying this methodology, we typically end up with about 100 – 125 funds, as the top ranked from each category. Honestly, the easiest thing for us to do is to recommend these schemes to you, as it would boast well from a historical stand point. But, we don’t treat the statutory disclaimer from the regulator, ‘Past Performance is no indicator of Future Performance’, as just a disclaimer. We have it imbibed in our process. Hence, we walk an extra mile trying to find out what could potentially do well.
It begins with applying qualitative parameters such as AUM, Market Cap Break Up, Fund Manager Vintage, Expense Ratio, Exit Load, Credit Quality etc. Leading indicators such as YTM, Duration, and Sector Exposure also may be used from time to time for refining the fund selection process.
This makes us really stand out from the rest. Marrying the quantitative algorithmic process with the qualitative check run by humans – humans with decades of experience and expertise in the domain. Result is in the form of 20 – 25 schemes cherry picked for you. Some may have already done very well and 5 star rated by other agencies, some may not have. We are not just stopping by expecting you to believe what we have suggested. Instead, our analysts dived deep into these funds and have prepared a note that you would love to read.
|Metrics||Method of Calculation|
|1 Year Return||Point-to-point return over previous year|
|1/3/5/7 Year CAGR||Return over previous 1/3/5/7 years compounded annually using year-end NAVs|
|1/3/5/7 Year Rolling Return||Average of monthly returns over last 12/36/60/84 months|
|Standard Deviation||Annualized SD of monthly returns over last 12/36/60/84 months|
|Sharpe Ratio||Volatility-adjusted annual performance measure, using 1/3/5/7 Year CAGR, 10 Y Benchmark G-Sec, and annualized SD over last 12/36/60/84 months|
|Sortino Ratio||Negative volatility-adjusted monthly performance measure, using 1/3/5/7 Year CAGR, 10 Y Benchmark G-Sec, and annualized SD over last 12/36/60/84 months|
|Treynor Ratio||Systematic risk-adjusted annual performance measure, using 1/3/5/7 Year CAGR,|
|10 Y Benchmark G-Sec, and beta calculated over last 12/36/60/84 months using different benchmarks (CNX Nifty, CNX Midcap, and BSE 200 as applicable)|
|Information Ratio||Benchmark-relative monthly performance measure adjusted for volatility over benchmark return using monthly returns over previous 12/36/60/84 months|
|Jensen’s Alpha||Actual monthly return minus theoretical expected monthly return using CAPM model, annualized, using monthly returns over previous 12/36/60/84 months|
|R-Squared||Portion of actual monthly return explained by the relevant benchmark monthly return over last 12/36/60/84 months|
|Beta||Extent to which scheme return moves with market return adjusted for market risk over previous 12/36/60/84 months|
|Negative Count||Number of months in which scheme return was negative out of the months when CNX Nifty monthly returns were less than -1% over previous 12/36/60/84 months|
|Mean Return||Average of monthly scheme returns over the months when CNX Nifty monthly returns were less than -1% over previous 12/36/60/84 months|
|Standard Deviation||SD of monthly scheme returns over the months when CNX Nifty monthly returns were less than -1% over previous 12/36/60/84 months|