Understanding fund directory

Last Updated: Fri, Dec 07, 2012 21:01 hrs

pThe listing gives you information on the performance of mutual fund schemes based on investment category they belong to and with a corpus QAAUM quarterly assets under management of over Rs 600 crore For the full list of schemes visit wwwbusiness-standardcomdownload fm2012xls Returns adjusted for payouts where applicable and net asset values NAV are for the period ended September 28 2012 Data has been sourced from wwwmutualfundsindiacomppEquity fund returns for periods below one year have been calculated in absolute terms while for periods above one year they have been computed on a compounded annualised basis Returns for short-term and long-term debt funds are simple annualised for period of less than one year and compounded annualised for period of more than one year Category averages are simple meanppThe fund ranking is done separately for the various categories and not across categories Latest corpus QAAUM figures are based on those published by asset management companies AMCsppThe Fund Managers of the Year have been selected based on risk-adjusted returns which is the return per unit of risk for the schemes for the 12 months ended September 28 2012 For equity funds only open-ended diversified funds whether large-cap or mid-cap were considered Sector or theme funds were not eligibleppThe daily returns on the NAV and a risk-free return of 7 per cent were used for the purpose of calculation of the Sharpe ratio For the debt funds the ultra short-term and liquid schemes were not eligible for the ranking whereas the risk-free return was taken as 85162 91 days Treasury bill average for last one year Moreover the fund manager should have managed the scheme for at least the one year to be eligible for the awardppAlso for the further eligibility the sum of QAAUM is considered and 10 of the bottom equity funds and 25 of the bottom debt funds are moved out To ensure that no fund manager emerged as a winner merely based on the performance of a particular scheme managed by himher the concept of &lsquoAdjusted Sharpe Ratio&rsquo was adopted Here a composite score was ascertained for each fund manager comprising the weighted average of the Sharpe ratio achieved by each scheme managed by himher The average one year corpus of each scheme and the sum of QAAUM was used as weights to arrive at hisher scorep

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