Thread by @IamMisterBond

Announcing MISTERBOND'S ROLL OF HONOUR for Mutual Fund schemes under all categories of #Debt, #Hybrid and #Equity.

This will showcase Top 5 schemes in each category.

This should become the #GOLD standard in ranking Mutual Fund schemes on #QuantitativeAnalysis

This will be based on monthly analysis of daily rolling returns in each category and then
12 month average of such monthly analysis

We compile daily rolling returns over different periods based on Asset classes like:
1. Daily 60 mth rolling returns over past 7 yrs for Equity
2. Daily 36 mth rolling returns over past 5 yrs for CreditRisk
3. Daily 12 mth rolling returns over past 3 yrs for Low Duration Funds

This is the correct way of Ranking schemes - which gives importance to consistency of performance rather than giving importance to recent past performances.

Other rankings keep changing based on recent past performance as they ranking based on P2P returns

MisterBond's Roll of Honour will give following 3 ranking analysis:

1. Industry average of say Large Cap schemes during data under consideration and % of observation of an AMC beating Industry average (#BI)

2. Investor High Returns score (#IHR) - higher returns of a scheme in higher returns band gets more points and gets Ranked no 1, 2, etc.

This does not take into account #Volatility (#StdDeviation)

3. Investor Experience Returns Score (#IER):

IHR Score (higher returns at what cost or voaltility). i.e.IHR Score divided by Std Deviation

Higher IHR Score and lower Std Deviation gets Ranked no 1, 2, etc.

Finally, Consolidated average (#CA) of IHR + IER + BI score will determine the leaders in each category

Hope this helps in selecting schemes based on their consistency of performance.

Do give your feedbacks on this unique way of ranking schemes and make this the Gold Standard while doing Quantitative analysis of scheme rankings

Will share ROLL OF HONOUR soon for scheme performances under each of the following based on past 12 month average from Jan 22 to Dec 22:

1. Large caps
2. Large & Mid caps
3. Flexi caps
4. Mid caps
5. Small Caps
6. DAAF