Did you miss the gravy train?

Did you miss the gravy train?

The Sensex seems to be setting new highs every day and mutual funds are not far behind. For instance, while the Sensex gave a 48% return over the past one year, 76 funds out of the universe of 195 diversified funds managed to beat this number quite comfortably. But to pick the top five funds out of all the outperformers is a tough task. Because, apart from the return figures, it’s equally important to know the fund manager as well as the fund’s consistency, volatility and risk premium.

In India, there are 96 equity diversified funds that have been launched in the last three years and 30 funds which are 10 years old. There were 195 equity-based diversified funds in the market at the last count, across 31 asset management companies.


Mint brings you, with the help of data from Value Research, a mutual fund research house, a snapshot of five funds that beat the Sensex this year, along with their performance indicators for the last three years. And in an effort to map how each of these funds have performed compared with the market, the Sharpe ratio, Beta, R-squared and Alpha have been measured.

Sharpe ratio

This is a measure of the excess return per unit of risk in an investment.


It relates the returns on a mutual fund with the returns in the market. Anything above 1 infers high volatility and vice versa.


A high R-squared indicates that the fund has performed in tandem with the Sensex.


This is the excess return of the fund relative to its benchmark index.

(Write to us at businessoflife@livemint.com)