(Disclaimer: past performance is no guarantee for future performance. Asset size: For Equity funds, the threshold asset size is Rs 50 crore Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market.Īverage returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * ĥ. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Outperformance: It is measured by Jensen's Alpha for the last three years. Z = Y/number of days taken for computing the ratioĤ. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. The larger the value of H, the stronger is the trend of the seriesģ. Iii) When H is greater than 0.5, the series is said to be persistent. Ii) When H is less than 0.5, the series is said to be mean reverting. These type of time series is difficult to forecast. I) When H = 0.5, the series of return is said to be a geometric Brownian time series. Funds with high H tend to exhibit low volatility compared to funds with low H. The H exponent is a measure of randomness of NAV series of a fund. Usually, but not always, mutual funds with high turnover ratio are to be avoided as it. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. Mean rolling returns: Rolled daily for the last three years.Ģ. We typically come up with our updates in the first or second week of every month.ĮTMutualFunds has employed the following parameters for shortlisting the equity mutual fund schemes.ġ. Look out for our monthly updates where we keep discussing the performance of these schemes. You may invest in these schemes with a minimum investment horizon of five to seven years. If you are interested in investing in large cap mutual fundsto take care of your long-term financial goals, here are our recommended large cap schemes. If you want to match the market returns, you may educate yourself about index schemes and invest in a large cap index scheme. If you are happy with 10-12% returns offered by large cap mutual funds over a long period, you should invest in them. Investing in other mutual fund categories for higher returns without paying attention to the extra risk could be a costly mistake. However, these schemes can still continue to offer inflation beating returns without too much volatility. It is true that new benchmarks and stricter investment norms have made life difficult for these schemes. However, writing off large cap schemes could be a mistake. Ever since SEBI introduced total variable benchmark indices and stricter investment norms, these schemes have been struggling to beat their benchmarks. Many investors and mutual fund analysts believe that large cap schemes are losing their mojo lately.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |