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, 2018, leading us to an overall universe of 66 fund managers.
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 146 equity schemes managing 4,706 billion for the three-year period, 154 equity schemes managing 4,515.33 billion for the five-year period and 93 equity schemes managing 2,826.52 billion for the 10-year period.
The study is based on the performance of fund managers for the past three years (January 2016-December 2018), five years (January 2014-December 2018) and 10 years (January 2009-December 2018).
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.
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.