We’ve been publishing a month-to-month fairness mutual fund screener since Sep 2022. This makes use of rolling returns to find out how constantly lively mutual funds outperform consultant class benchmarks. This will also be used to understand how laborious it’s for lively funds to outperform and why passive funds make sense – particularly in case you are a newbie. Previous relics like me have a portfolio that summarises all previous errors.
Take, for instance, the Feb 2025 screener. We’ve a complete of 403 mutual funds throughout a number of classes. Some classes have a number of benchmarks.
| Class | Benchmark |
| Aggressive Hybrid Fund | Nifty 100 TRI, CRISIL 65:35 Aggressive Hybrid Index, NIfty 100 Low Volatility 30 TRI |
| Contra Fund | Nifty 100 TRI, NIfty 100 Low Volatility 30 TRI |
| Dividend Yield Fund | Nifty 100 TRI, NIfty 100 Low Volatility 30 TRI |
| Massive Cap Fund | Nifty 100 TRI, NIfty 100 Low Volatility 30 TRI |
| ELSS | Nifty 100 TRI |
| Focussed Fund | Nifty Largemidcap 250 TRI, N200TRI |
| Massive & Mid Cap Fund | Nifty Largemidcap 250 TRI, N200TRI |
| Multi-Cap Fund | Nifty Largemidcap 250 TRI, N200TRI |
| Flexi-Cap Fund | NIFTY 500 Multicap 50:25:25 TRI, Nifty Largemidcap 250 TRI, N200TRI |
| Sectoral/ Thematic | Nifty Largemidcap 250 TRI, NIfty 100 Low Volatility 30 TRI |
| Worth Fund | Nifty Largemidcap 250 TRI, NIfty 100 Low Volatility 30 TRI |
| Mid Cap Fund | NiftyMidcap150TRI, Nifty Midcap 150 High quality 30 TRI |
| Small Cap Fund | NiftyMidcap150TRI, Nifty Midcap 150 High quality 30 TRI, Nifty Smallcap 250 High quality 50 TRI |
The principle metric used is Rolling return outperformance consistency: the fund returns are in contrast with class benchmark returns over each attainable 1Y,2Y,3Y,4Y, and 5Y interval. The upper the outperformance consistency, the higher. Suppose 876 fund returns have been in contrast with 876 benchmark returns, and the fund has crushed the benchmark 675 occasions. The consistency rating will likely be 675/876 ~ 77%.
If we now ask, what number of mutual funds had a rolling return outperformance consistency of 70% or extra over 5 years. We solely have 140 fairness funds throughout all classes. So 140/403 is simply 34% of lively fairness funds. That needs to be sufficient to persuade you to maintain it easy and be a passive investor!
You may also display for funds with increased than benchmark trailing returns with decrease trailing threat. The variety of such funds during the last 1,2,3,4, and 5 years is simply 29!
You can select lively funds for those who like them however guarantee (1) you will have a correct funding technique and (2) don’t be so positive your funds (or lively funds on the whole) will outperform the market! See: The “lively vs passive” debate will not be of major significance in portfolio administration.
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