Risk factors of Mutual funds

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manojkhadilkar asked 8 years ago

Dear Sir, I have two queries. 1)When we compare mutual funds , we check trends of Returns for last 3 , 5 years.Why we do not check past trends of risk factors like Beta , Sortino Ratio, Alpha for Equity funds OR Average Maturity,Standard Deviation etc for Debt funds etc? Where we can get details of these factor for past period? 2) In one blog , I noticed one point that while selecting mutual fund for comparison , pl. check its benchmark.For Apple to Apple comparison of mutual funds ( Say Large cap funds ) its bench mark should be same.Is it true? Where I will get information about various benchmarks of mutual fund & its meaning?

3 Answers

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Sreekanth Staff answered 8 years ago

Hi, 1 - As much as possible, I do check the mentioned risk ratios and try to arrive to best and most consistent funds list. Kindly read : https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/best-mutual-fund-schemes-sebi-norms/ https://www.relakhs.com/best-mutual-fund-schemes-2017/ You can get risk ratio details on portals like Valueresearchonline or Morningstar.. 2 - The portfolio of an MF scheme mimicks its benchmark to a major extent (based on its investment objective and strategy). For ex : Birla Frontline Equity Fund (now large cap fund), its benchmark is Nifty50. You can find benchmark details on portals like moneycontrol, respective Mutual fund house websites etc., Kindly read : https://www.relakhs.com/index-funds-etfs/ https://www.relakhs.com/total-return-index-tri-mutual-funds/

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manojkhadilkar answered 8 years ago

Thanks for the reply..I would like to explain my query .My query is

We can see the trends of returns on value research /morning star. for last 3,5,10 years.Where we can see trends of risk ratios of last 3 ,5 years? We always get latest risk ratios & not historical ones

2. While comparing two funds ( Say two large cap funds ) is it better to see that the bench mark funds are following is same ? . Will it ensure Apple to Apple comparison? Sometimes it happens that we land up comparing one large cap fund with one multicap fund.

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Sreekanth Staff answered 8 years ago

Hi, 1 - Yes, on portals like the ones you mentioned, we get latest info on Risk/volatility ratios. As of now, even I am not aware of a portal(s) where historic or consolidated info on risk ratios is available. 2 - Makes sense to compare the funds with same benchmark. But, due to recent SEBI's new norms reg. classification, Apple to Apple comparison can only be possible. Kindly read :