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Fund factsheet a powerful tool to analyse mutual funds

Nikhil Desai
/ Categories: Mindshare, Mutual Fund
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If you are a mutual fund investor, then its very necessary to analyse your options before investment. To choose the best suited funds among various funds, investor should go through dynamics of the funds. To analyse these parameters the best source is funds factsheet.

Fund factsheets are easily accessible at AMC’s website and are published monthly. Investors are advised to check these factsheets monthly to track fund’s performance and to know their schemes better.

Basically, investors invest in the mutual funds to grow their money and beat the inflation. The fund factsheet gives the information of the performance of the fund over the period of time with respect to its benchmark. If the fund is outperforming or going in-sync with its benchmark, it represents that the investment is growing well. However, continuous underperformance may be a negative parameter for the fund.

Additionally, the fund factsheet gives the information of the securities held under the funds portfolio. The fund manager invests the corpus in various cross-sectional sectors to avoid the risk associated with the volatility in the individual sector. As an investor one should thoroughly go through the portfolio to be aware of where the money has been invested and what will be its future prospectus with respect to market conditions.

Further, fund factsheet also gives the information about the operational aspects of the fund. The portfolio turnover ratio mentioned in factsheet suggest the churning of the portfolio as well as expense ratio, which represents expense as a percent of the net asset. Also, fund factsheet gives a snapshot of the fund managers and market outlook which is useful for making an investment decision and can guide you about the risk levels involved in the current market scenario as well as the skills and strategies of the fund managers who is handling the fund.

So, with the tracking of the fund factsheet an investor will be able to take a preview of his investments and its future prospectus at a glance and make an informed investment decision


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