Coverage
Fund managers

The study covers fund managers having a track record of managing at least one fund for the past 3-, 5- and 10-year periods ending December 31st, 2016, leading us to an overall universe of 76 fund managers.

Funds

• The study covers diversified equity funds across large-cap, mid-cap, small-cap, multi-cap and tax planning categories as defined by Value Research. All sector funds, thematic funds and passively-managed funds (index, ETFs, quant) have been excluded.

• This led us to a starting list of 162 equity schemes managing Rs.295,810 crore for the three-year period, 140 equity schemes managing Rs.292,053 crore for the five-year period and 97 equity schemes managing Rs.218,730 crore for the 10-year period.

Performance record

• The study is based on the performance of fund managers for the past three years (January 2014-December 2016), five years (January 2012-December 2016) and 10 years (January 2007-December 2016).

• Only the relevant portion of a fund’s performance history, corresponding to a fund manager’s tenure at that fund, has been taken into account to rate that manager.

• The performance of co-managed funds has been taken into consideration for each of the co-managers.

Evaluation methodology

• We collated a simple average of the percentage return delivered by a fund manager in each of his covered funds. If the fund manager moved from one fund to another, the relevant track records were aggregated.

• This gave us the unified performance history of a fund manager. The same process was followed for both 5- and 10-year periods. Think of it like this: if a fund manager was managing only one fund in the past five years, this would be its performance record.

• We deployed the Value Research fund rating methodology, which is based on risk-adjusted return, to arrive at the relative ranking of fund managers.

• This is purely a quantitative study based on risk-adjusted performance. In other words, no qualitative assessment has been performed.