How we select funds?
Selecting best Mutual Funds from gamut of funds is not easy and only after a thorough Quantitative & Qualitative analysis top funds are picked. Further we update our suggested funds on a semiannual basis (once in 6 months).
Quantitative Analysis
We do a lot of number crunching and run deep statistical analytics before picking any funds. We use various parameters such as consistency of returns, Sharpe Ratio, AUM growth, etc and only the best performing funds are chosen.
Qualitative Analysis
We also focus on non-mathematical and more descriptive analysis to pick funds. We look at various factors such as fund house strategy, investment team, investment mandate etc. that can affect the future performance of the fund.
However, picking ideal funds to invest from the overall universe is only half job done. Based upon your Risk Profile, Time period and Investment Amount, our portfolio algorithm selects funds accordingly.
Our smart algorithm decides percentage of Debt/Equity/Hybrid fund allocation based upon your risk profile. Further based upon the time period of investment, decision is made to invest in short term or long term funds.
For example, within equity funds small and midcap funds are recommended for long time horizon whereas large cap funds for shorter one.
Similarly algorithm selects short term and long term debt funds based upon time horizon. Algorithm picks gilt funds for lower risk profiles and credit funds for investors with higher risk appetite.
Now you understand the nuances of building a portfolio, click here to use our portfolio tool and start building one for yourself!
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