Mutual funds have been the preferred investment route for the investors for their simplicity, ease of access and suitability for any kind of financial goal. However, selecting the mutual fund scheme to invest in remains a challenge owing to more than two thousand primary schemes in the market.
Thousands of schemes present tons of data that has to be analyzed before one can make a choice of investment.
In this post, let’s see how we can make use the heap of data easily.
TheFundoo.com is a recently launched portal that aims to make mutual fund analysis easy for advisors and investors. FundPicker, the mutual fund analytics platform on the Fundoo.com, can help you in analyzing and selecting the right mutual funds for investment.
Making the heaps of data USABLE?
All mutual fund data is freely available. Right? But how much of it is usable?
Let’s try to understand this question.
Say I have to select Large-Cap funds that have been top performing (as compared to peers) on alpha generation for the past 1y, 3y and 5Y, have less risk (Volatility) and high risk adjusted return (Sharpe Ratio).
If we think of it, all the data in the above question is FREE. We can look at fund factsheets, websites that provide mutual fund analysis and we will find all the information asked in the above question for all funds. The problem is that all that information is not present in just one view at one place. Some information might be available where all large-cap funds are listed while others might be available on individual funds’ pages.
So how much time would it take us to get the list of mutual funds that qualifies the filters in question?
We might have to pick the data one-by-one into excel from individual fund pages and then apply sorting and filtering. And overall it might take an hour if not a few hours.
In real world, we would look at many more parameters simultaneously including holdings, consistency, fund bio like age, assets, expense ratio, exit load etc. to make a comprehensive analysis. Such analysis might demand substantial time and resources.
FundPicker solves this problem with its powerful mutual fund screener. With more than 50 filters that span parameters based on Return, Risk, Style, Holdings, Consistency etc. one can do the above mentioned analysis in a matter of seconds. We can set filtering limit on any number of parameters in parallel and get to see the results immediately. The entire set of parameters is collectively exclusive and helps in short listing mutual funds.
Let’s do a small exercise. You can do it yourself on FundPicker.
The snapshot below shows the default page loaded. FundPicker is showing all Large Cap funds. Note the dropdown on the left with LargeCap funds selected (by default) and the count showing 84 funds out of a total of 2180 primary schemes.
The schemes are put into 5 grades/buckets based on how good they are, on various parameters. Schemes that are the best, are put in the 5th bucket, while the worst are in 1st bucket. A scheme may be in bucket 3 on risk but in bucket 5 on return depending on the numbers. Such bucketing helps in filtering schemes more efficiently.
Let’s apply some filters now. Pull down the filter dropdown by clicking on the gray FILTERs button. You can see parameters grouped into Basic, Return, Risk, Fund Manager, Style and Ratings tabs.
Say we want to apply filter on the 3y and 5y return. To do this, Select the Return tab and you will be able to see the filters that you can use.
You can see various sliders which can help you in selecting the range of schemes that you want on a particular parameter. Say we want to select schemes that have been in the 4th or 5th bucket based on 1Y and 3Y return.
We will move the left knob of the slider (1y) to the position 4. This will make only 4-5 portion of the slider selected (in blue). We will repeat this for 3Y return slider.
As you move the slider, you will see the filtering going on and once you have applied both filters, you can see that FundPicker has shortlisted 13 schemes.
You could do all of this in hardly a few seconds. You can apply any number of filters, depending on how you wish to select funds and the result shall be instantaneous.
Once we have shortlisted the schemes, they can be analyzed in more detail in the results section.
In the results section you can see the red-green dots on the statistics which suggest the bucket in which that particular stat lies in. The visual clues make it easier to compare the funds briefly. You can also add more columns to compare the funds in the grid.
The tiny icons, along with the Scheme name on the left, help you in the following:
You can also analyze the results in ‘Scatter View’ by selecting the view option on the top left. This view presents the selected funds on risk-return map signifying how much return and what risk is being generated by the fund.
Besides, the mutual fund screening functionality, FundPicker presents a lot of other features on detailed fund analysis, fund comparison and a number of tools to make the mutual fund analysis holistic.
Do try them and hope they help you in doing good analysis.
Note-This is guest post by Mr.Sharad Singh, CEO, Valuefy Solutions, a man behind “The Fundoo”.
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View Comments
Hi Basavaraj,
My father after retirement, i am insisting him to do Fixed deposit which earns him 70k per monthly payout interest.
So I am asking him to put 40k-50k in existing SIPs he is doing and remaining g 20k for house maintenance as medical expenses are beared by his office for both mother and father.
But he is saying to buy a single house for 1cr with his retirement money.
I am saying to invest in SIP..In this way his original amount is safe in FD and interest amount gets invested in SIP planning for 15-20 years and will be useful .
He is saying mutual funds returns are not guaranteed, but I say if we invest major portion of retirement money in buying house is bad
Please tell me good option
Dear Krishna,
It is hard for me to guide you blindly.
Thanks Basavaraj, excellent article and awesome tool..
Dear Basu.,
I am 27 yrs old and i can save 17 k a month frm which i am planning 10k towards mutual fund and 7 k in ppf ac..
My time horozon is 15 to 20 yrs and the goal is fr my daughters highr education.
For mutual funds am plaaning to invest in following funds each 2k
1.SBI BLUECHIP FUND(G
2.ICICI PRU FOCUSSED BLUECHIP EQUITY(G)
3.DSP BLACKROCK MICRO CAP FUND-RP(G)
4.AXIS LONG TERM EQUITY FUND(G)
5.HDFC BALANCED FUND(G)
IS IT ENOUGH FOR MY EQUITY PORTFOLIO,??
PLS SUGGEST PROS AND CONS FOUND ABOVE
Aneesh-First define your tenure of goal perfectly. There is a big gap of 5 years between 15-20 years. Then we discuss about investment.
Hi Basawaraj,
Excellent article. I am bit confused about my MF. I need money for baby education after 14 years and retirement after 20+ years. I already have some FD (as debit dund) and have following two sip running
1) HDFC balanced fund
2) Franklin smaller companies fund
Now I want to choose 2 more funds from following
3) Franklin India Prima Plus/ICICI Pru Discovery Fund/Mirae Asset Emerging Blue/HDFC Mid-Cap Opportunities/Franklin India prima fund
Can you please help in choosing two funds from following
Thanks,
Prem-Whether your debt and equity portfolio meant for this goal is in line with around 30:70 in debt:equity?
Thanks for reply.
Yes, at the moment I have debit fund around 50% which I will bring down to 30% and stabilize.
I have 1) HDFC balanced fund
2) Franklin smaller companies fund
and I have to choose 2 funds from Franklin India Prima Plus/ICICI Pru Discovery Fund/HDFC Mid-Cap Opportunities/DSP-BR micro cap
I am 33 years, I need money for baby education after 14 years, baby marriage and retirement after 20+ years.
Prem-For me one large cap and one mid cap fund enough.
Thanks for suggestion,
Then Apart from HDFC balance and Franklin smaller, for choose following
Large cap- ICICI pru value discivered- I guess its diversified
Mid cap- HDFC mid cap opportunity
I am keeping 25% allocation for each fund
Is these fund good in following proportion or please choose for me?
Thanks,
P
Prem-My blog post "Top 10 Best SIP Mutual Funds to invest in India in 2016".
Sir,
there is no mid cap section in that blog list, its either large and mid cap OR mid cap and small cap so I have choose
For mid cap- HDFC mid cap opportunity
ICICI pru value discovered is OK or ICICI Pru Focussed blue chip?
Thanks,
Prem-Please refer the post properly.
Excellent !!
Hello Basvaraj.
I have two portfolio,one is core and other is Satellite folio.Core folio consist of following funds.
1)Axis Long term Equity(Rs:1000)
2)ICICI Focused Bluechip(Rs:2000)
3)Tata Balanced fund(Rs:1500)
My holding time will be more than 10years for above fund.
Below are the Satellite Folio.
1)Canara Robecco Emerging Equities(1000)
2)DSP black rock microcap (1000)
3)UTI MNC(1000)
4)ICICI Banking&Fin(1000)
5)Reliance Pharma(500/-)
My holding time is 3 years for above satellite folio.
Following are the my query:
1)Can u please share your comments on my portfolio do u think it required any changes please?
2)I wanna remove one fund from this especially either from DSP or Canara which one u suggest please?
Thanks,
Sajith
Sajith-First let me know the logic of creating the so called CORE and SATELLITE portfolio. It is strange to see that for short term portfolio i.e. Satellite portoflio you selected risky funds and for long term holding or CORE portfolio, you went with moderate view. Your holdings must match your timeframe. But in your case it is totally mismatch.
Sir, I have invested rs 1000 sip in hdfc balanced fund direct (g). I want to invest another rs 1000 sip for 15 year's. Which are the fund can I consider? I have selected some fund they are ICICI pru focused blue chip fund direct and sbi small and midcap fund. Please suggest?
Sabit-Go ahead with both selected funds along with HDFC Fund.
Hi Sir,
I am 29 years old ,Wanted to invest 20000 permonth for minimum 10 to 12 years.
I am new to MF, Have started investing into the follwing funds from last month. Please review and let me know if i need change anything in my protfolio.
ICICI PRU value discovery,
Canara robeco emerging equities
UTI Equity
Axis Longterm equity
Tata balanced fund.
Thanks in advance
Mani-Retain one small and mid cap fund (ICICI). I don't think Canara fund required. At the same time, if you want to save tax then invest in Axis, otherwise NO.
Thanks for quick Response. Could you please suggest a good Equity diversified fund which suits for me. intailly i thought ICICI fund was into Equity diversified category and started investing into it.
I am also planing to take a term insurance for 1 CR. I have selected HDFC & Kotak online term polices. Please suggest me best one out of these.
Thanks
Mani Kumar
Sir,
Want some guidance from you, I just started mutual fund investment by monthly SIP of Rs.1000/- in SBI Blue Chip Fund DIRECT (G) for 20 yrs.. Now I want to invest in some other funds for next 10 to 20 years please guide me about my choice and suggest if any changes required.
HDFC Balanced Fund Direct (G) : 1000/- per month
HDFC Top 200 Fund Direct (G) : 1000/- per month
Tata Balanced Fund Direct (G) : 1500/- per month
Tata Ethical Fund Direct (G) : 1500/- per month
SBI Magnum Mid Cap Fund Direct (G) : 1000/- per month
SBI Magnum Global Fund Direct (G) : 1000/- per month
ICICI Prudential Value Discovery Fund Direct (G) : 1000/- per month
SBI Magnum Balanced Fund Direct (G) : 500/- per month
Waiting for your reply, Thanks
Paresh-Retain SBI fund and along with that add a small and mid cap fund like Franklin India smaller companies fund or HDFC Midcap Opp fund. You can include HDFC Balanced Fund also. These 3 funds are enough.
Sir,
But for what amount i have to invest in these 3 funds, can i club other funds investment amount and invest in your suggested 3 funds or what? and what about other funds like tata balance, tata ethical, icici value discovery are they not good funds? Please guide
Thanks
Paresh-I already told my view about funds. Regarding allocation of amount, if you have other debt ivnestment portfolio then invest in all three funds equally. However, if no debt portion then go higher side towards HDFC Balanced.
Sir,
I've started hdfc balanced fund direct plan through hdfc MF branch. Now I want to invest axis long term EF (sip) for tax saving. For direct plan Can I start through online? To start axis mf, is it enough for submission of id proofs(for kyc) for hdfc balanced MF? Otherwise where should I submit kyc? In Karvy, they said that they are not service direct plan. In cams, there is not available axis mf, for hdfc balanced MF direct plan they said that form is not available. Then only I went hdfc MF branch. In hdfc MF branch they did not give offer document. I have received alert via email and mobile. Is it right now? Or should I get od from hdfc MF?
Thanks for your reply in advance.
Priya-To start with Axis, I suggest you to go to Axis directly. Take the printout of KYC status by visiting CVL KRA. This acknowledgement is enough. No more KYC documentation required (even PAN Card too). There is no separate form for Direct MF investments. Same common application forms can be used for direct as well as regular plans. If no one provide you forms then such forms are easily available on respective mutual fund portals. Hence, you can easily download them.
Sir,
Thanks for your help. What about offer document? I did not get for hdfc balanced MF. I've another question.. If I invest any elss - sip plan for 5yrs after completion of 5yr can I close fund? Or should I close after 8yrs(5+3)? Because last month sip locked for 3yrs?
Priya-Offer document is available online. Why you have to ask them? In ELSS Funds, each month SIP is considered as fresh investment. Hence, each SIP must complete 5 Yrs. Let us say you opted 5 Yrs of SIP, then to withdraw all money the last SIP must also complete 5 Yrs.
Thanks for your response sir.