Research Criteria and Methodology. Read to know more about how we select the best funds for you.
We have a robust and tested research methodology to recommend the best set to you. We cover a range of factors:
- Minimum 3-5 year track record
- Performance and returns over multiple time horizons: 1yr, 3yr and 5yr (additionally 6m for debt)
- Performance in bull and bear markets, and during upward and downward movement of interest rates
- Performance of fund manager in other schemes, and over time
- In case of equity, diversified portfolio with limited exposure to mid and small cap stocks (which are inherently more risky)
- In case of debt, funds with limited or no exposure to private sector corporate debt (especially real estate and construction, but also other sectors like paper, logistics, FMCG, NBFC, etc). Other than sovereign debt, we usually only consider funds with banking and / or PSU debt in the portfolio
- In case of debt, less or more exposure to the yield curve, based on the tenure of the investment
We usually exclude products like Unit Linked Insurance Plans (ULIPs), stock trading, derivatives, post office schemes, etc. These products only enrich the broker and not the investor. The products that are generally most suited to long-term investing are mutual funds, PSU bonds (e.g. NABARD, Indian Railways, Power Finance Corporation), blue-chip stocks held long term, PPF and New Pension Scheme.