Mutual Funds Screener

Equity

• Step 1 - Shortlist schemes with twenty-year performance, we don't get direct option data for this time period, so we can select regular option
• Step 2 - Look for the schemes that make it to the top two quartiles
• Step 3 - Now, we can look for 15 year return and get the schemes in the top two quartiles
• Step 4 - Repeat the same process for 10 year, 5 year and 3 year returns, for these time periods we can look at direct option returns
• Step 5 - If any fund does not show up in at least three out of five time periods. We will remove it
• Step 6 - Now from these, decision can be made using Aplha, Standard Deviation, Expense Ratio, Risk and Return Grading Etc.

Equity - Index

• Step 1 - Choose only index funds and not ETFs
• Step 2 - Reduce the choice of index funds to only those that track the bellwether indices, which are Nifty 50 and S&P 500 Sensex
• Step 3 - Now we filter funds with performance history and minimum size of atleast Rs. 500 Cr
• Step 4 - We look now at the expense ratios to find lower cost schemes within the group
• Step 5 - Check if the passive fund is actually doing its job, You can use tracking error to find that. We can remove funds with tracking error greater then 0.10%
• Step 6 - A scheme with a large AUM, at least 5 years data availability of various metrics, low tracking error and low expense ratio is just fine.

Source: Based on principles from "Let's Talk Mutual Funds" by Monika Halan