How to Check the Performance of a Mutual Fund Scheme?

By Advisorymandi
21-April-2018 6:41:33 AM
Performance of MF Scheme

In this modern era, digital technologies and innovations opened the doors of worldwide information. Now we are independent more than ever and don’t have to rely on anybody for any piece of information. We are capable to do anything whenever we want, wherever we want. And the reason why we are encouraging the techs of this digital age is that most beginner investors and digital participants rely on friends, family, and other people regarding their money investments. Stating the obvious but it is very common in our society than we can imagine. We take investment decisions based on someone else’s opinion. Sometimes it works and sometimes it doesn’t.

But, the question is, why we have to rely on someone else for our investment goals? Especially, when there are a plenty of resources available out there. More importantly, nobody knows about your investment goals better than you. The same thing applies to mutual fund investments where investors most likely to believe in somebody’s words and invest his/her precious money in some random MF scheme. Which is why we are here to help you in providing the right information to check the performance of a mutual fund scheme. By considering few things you will be able to analyze the performance of any MF scheme.

Here are some useful tips to consider:

Check the Net Asset Value (NAV):

The first and most important thing to consider while checking for MF schemes is the net asset value (NAV) which directly affects your mutual fund investment. It is not like, NAT is “The only important thing to consider.” But, for starters, net asset value will give you the general idea about the MF scheme.

Net Asset Value is nothing more than “A Book Value” but it plays a significant role.

Unlike the price of an equity share which by the way depends upon the future company’s performance, the net asset value is standard and fixed for the asset. There is no such thing as high or low. That explains why the NAVs of MFs are published in newspapers and available on websites. NAVs of all MF schemes are also available on Association of Mutual Funds in India (AMFI) website where you can go through all schemes and their NAVs at one place.

Check Performance Report:

The mutual funds must publish their work performance in the form of a half-yearly results including their yields/returns over a period of time like last six month, 1 year, 3 years, and 5 years etc. Even many research reports on the MFs performance launched by research agencies and firm which also a good source of information to keep up to date on the performance of various mutual funds schemes. The yields of different schemes are also mentioned in the financial newspapers on a weekly basis.

You can study the performance reports of MFs schemes and go through the details of percentage of expenses of total no. of assets.


You can compare one MF scheme with other schemes which come under the same category. Since 2012, Securities and Exchange Board of India (SEBI) has made it compulsory for all MF houses to declare a benchmark index in the offer document.

So, as an investor, you must measure the performance against its benchmark over a long period of time e.g. 3 years, 5 years, and 10 years etc. The consistency sign will indicate to enter and inconsistency sign will indicate to exit. Plus, you will get the clear idea about the scheme and able to take the decision to get in or out.

You can also compare the equity oriented schemes with the benchmarks like Nifty, Sensex, BSE 200, and CNX etc.

Note: – Don’t ever consider to compare one MF scheme against another of the different benchmark. The large-caps funds are different from small-caps funds just like banking funds are different from pharma funds. None of them should be compared with another.

Check Portfolio Diversification:

It is important to figure out that the mutual fund scheme is not biased towards a particular stock and is in synchronization with the risk profile. By keeping track of portfolio history of the MF you invested in you will be able to know if there is some sort of pattern in your MF or not. The best way to check the portfolio history is by browsing the site of fund houses or MF trackers.

Check for Ratio:

By checking some specific ratios such as Beta, Alpha, Sharpe, Standard Deviation, and much more to measure the risk associated with your MF scheme will give you the fair idea about the return and can analyze the volatility of the scheme. Measuring the risk of any investment plan can reduce a lot of misdoings of investment markets. Speaking of returns, checking for risk-adjusted return, rolling return, and total return would probably be a good idea to analyze the performance.

Final Thoughts: –

On the basis of all above points, you can analyze the performance of any open-ended or close-ended fund/scheme and decide whether to enter or exit from the scheme or not. We believe all the above points which we weighted to consider while analyzing the performance of MF scheme will be enough to guide you in selecting the right one.

For more details or any query, you can leave a comment in the comment section below.


Note: All information & data provided in this article is for the educational purpose as well as to give general information on the finance & economy, not to provide any professional advice or service. Views & opinions are not biased against the company and do not affect any official policy or any other agency, an organization within the content.

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Author: Advisorymandi

AdvisoryMandi is India's most trusted Stock Market Advisory marketplace covers NSE, BSE, MCX & NCDEX. Invest with confidence and harness the power of AdvisoryMandi to make smarter investment decisions in Stocks, Indices, Commodities, Forex & IPO.

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1 year 9 months ago

Everyone think to invest in mutual fund but does not know the method to check its performance and hence tanggled. your blog is so informative to investor. Appreciated!!