Using a multi-layered methodology that factored in risk-adjusted returns, volatility, upside and downside capture, we identified 12 of the largest laggards.Investors holding any of these funds should use the current rally to dump these laggards. Several actively managed funds have consistently underperformed their benchmark indices and categories, which means investors in these schemes have lost out.ET Wealth tied up with investment research firm PrimeInvestor.in to identify schemes that have consistently done poorly and deserve to be dumped. But not all investors have reasons to smile. Mutual funds, which were down in the dumps last year, are now boasting eye-popping returns. The sustained rally has taken the benchmark indices to new heights. PPFAS has a sortino ratio of -0.10 where peers has around -0.40 to 0.47.Investors in stocks and equity funds have never had it so good. Higher the Sortino ratio is good among the peers. It is a modification of the Sharpe ratio but penalizes only those returns falling below a user-specified target or required rate of return, while the Sharpe ratio penalizes both upside and downside volatility equally. Sortino Ratio : The Sortino ratio measures the risk-adjusted return of an investment asset, portfolio, or strategy.(Peers have a sharpe ratio of -0.53 to -0.40). PPFAS has a sharpe ratio of -0.13 which is higher among peers. The greater a portfolio’s Sharpe ratio, the better its risk-adjusted-performance. The ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Sharpe ratio : The Sharpe ratio was developed by Nobel laureate William sharpe and is used to help investors understand the return of an investment compared to its risk.It shows that they are very focused on their investment. PPFAS has a turnover ratio very low around 5.82% among the peers. Turn-over ratio :The turnover ratio or turnover rate is the percentage of a mutual fund or other portfolio’s holdings that have been replaced in a given year (calendar year or whatever 12-month period represents the fund’s fiscal year).It includes some ratios by which you can understand the risk among peers. Risks : This is an important factor to consider while selecting funds. Returns of Fund within Category: Fund Name Top 3 sectors consist of Financial,Technology and Automobile which are really good sectors for the future.Įxpense ratio : Expense ratio is 1.95% which is inline with the peers. Portfolio has a 67% exposure to the top 3 sectors. So here ITC,Oracle fin serv,MCX are new additions. So to invest in the opportunity like this, they have international exposure. Companies like Alphabet,facebook are not in India and have great potential in the future. To invest in overseas securities is quite unique and will give your portfolio a stability and global exposure. They allocated 65.93% of funds in Indian Securities, 24.95% in Overseas securities and 6.24% in ADR/GDR and rest are as cash reserves. Portfolio: PPLTEF has a unique portfolio of Indian and Overseas securities. Thakkar on various topics.You can watch, good learnings. There are several videos on youtube of Mr. Thakkar is influenced by Warren buffet and Charlie munger. Thakkar is a CA,CFA,CFP and Cost Accountant. He has been associated with PPFAS since 2001.Mr. This fund is managed by three fund manager but CIO is Mr. The above measures are important to select any mutual fund.Īlso Read on FinMedium: Tutor Perini Corporation – Coffee with Abhishekįund Manager : It’s the most important factor to consider for selecting the mutual fund. Let’s look into some details: Fund CategoryĢ% if redeemed within 365 days. PPFAS(Parag Parikh financial advisory service) has only three funds which shows that they are very focused in their investing. Value investing and behavioral finance is one of my favourite investing books. He is also the author of many investing books. We are going to analyse Parag Parikh long term Equity fund. So Let’s analyze one fund here, so you will get an overall idea about the analysis of Mutual funds. We have seen in my previous article about factors that we need to analyze while selecting the Mutual funds. The reason is that in stock markets buying low and selling high works well. India Stock markets corrected almost 40% in a month.So what should Existing investors and new investors do ? It’s the best time to start the investment and if you are already doing then it’s time to deploy a new fund. Every morning we get new bad news about deaths,new cases and some rumors etc.but “This too shall pass”. The Beginning of 2020 is not as good as we thought.