Compare the whole portfolio, not just returns
Costs, risk, benchmark fit and consistency all matter.
Start with the scheme objective and category
Compare funds that have similar mandates. An index fund, small-cap fund, hybrid fund and liquid fund serve different purposes and should not be ranked together simply because one recently delivered a higher return.
Compare returns against the right benchmark
Look at multiple periods and compare a scheme with its stated benchmark and relevant category peers. Check whether returns are point-to-point, trailing or rolling, and whether the figures are direct-plan or regular-plan returns. Past performance does not guarantee future outcomes.
Understand costs and tracking difference
For passive funds, examine the expense ratio as well as tracking difference and tracking error. A low expense ratio alone does not guarantee close benchmark replication. For active funds, costs should be considered alongside the strategy, risk and consistency.
Assess risk and portfolio concentration
Review volatility, drawdowns, concentration by issuer and sector, credit quality for debt funds, liquidity and portfolio turnover where relevant. A fund with higher returns may also have taken materially higher risk.
Read the Scheme Information Document and factsheet
Check the investment objective, asset allocation, benchmark, riskometer, exit load, minimum investment, redemption terms and fund-manager information. The factsheet is a dated snapshot; confirm the latest version before making a decision.
Use official industry and regulatory sources
AMFI publishes industry information and NAV-related resources. SEBI provides regulations and investor education. The AMC’s own scheme documents and monthly factsheets are primary sources for scheme-level details.
Sources and further reading
AMFI SEBI SEBI Investor Morningstar India (secondary research)
Research note
InvestCalc uses expert commentary and YouTube videos only as secondary research leads when relevant. We aim to verify a creator’s current SEBI registration status from official records before describing them as a SEBI-registered Research Analyst or Investment Adviser. Registration is not an endorsement by SEBI. Any material figures or claims should be independently checked against original filings and scheme documents.