A mutual fund factsheet is like a report card for your investment — it shows performance, costs, portfolio details, and risks. Understanding it can help you make smarter investment decisions.
Key Sections of a Mutual Fund Factsheet
1. Fund Overview
Contains the fund’s name, category, investment objective, and benchmark index. This sets the context for what the fund aims to do.
2. NAV (Net Asset Value)
The per-unit value of the fund’s assets after liabilities. Shows the daily price of the fund.
3. Expense Ratio
The annual fee (as % of assets) charged for managing the fund. Lower is usually better for long-term returns.
4. AUM (Assets Under Management)
Total money managed by the fund. Large AUM can mean stability, but too large may reduce agility in small-cap funds.
Performance Section
Shows returns over different periods (1Y, 3Y, 5Y, Since Inception) compared with the benchmark. Look for consistency — not just the highest short-term returns.
Risk Measures
- Standard Deviation — measures volatility. Higher = more ups and downs.
- Sharpe Ratio — return per unit of risk. Higher = better risk-adjusted performance.
- Beta — sensitivity to market movements. >1 means more volatile than the market.
Portfolio Holdings
Lists top stocks/bonds the fund owns. Check for:
- Diversification across sectors
- Alignment with fund strategy
- Overexposure to a single company/sector
Other Key Data
| Term | Meaning |
|---|---|
| Fund Manager | The person/team managing your money. Experience matters. |
| Inception Date | How long the fund has been running — track record length. |
| Exit Load | Fee charged if you redeem units within a certain period. |
| Benchmark | The market index used for performance comparison. |
How to Use the Factsheet Effectively
- Compare performance with similar funds, not just the benchmark.
- Check if the risk level matches your comfort zone.
- Look at long-term consistency, not just recent returns.
- Understand where your money is invested (holdings).
FAQs
- Where can I find a mutual fund’s factsheet?
- On the AMC’s website, mutual fund aggregator portals, or via SEBI/AMFI websites.
- Is the NAV enough to judge a fund?
- No — NAV alone says nothing about performance. Always check returns, risk, and holdings.
- Should I exit if short-term performance drops?
- Not necessarily. Focus on long-term performance and whether the fund is still following its strategy.