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, 2019, leading us to an overall universe of 85 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 189 equity schemes managing Rs.6,147.62 billion for the three-year period, 171 equity schemes managing Rs.5,503.21 billion for the five-year period and 116 equity schemes managing Rs.3,880.51 billion for the 10-year period.
- The study is based on the performance of fund managers for the past three years (January 2017-December 2019), five years (January 2015-December 2019) and 10 years (January 2010-December 2019).
- 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 an average of the return delivered by a fund manager in each of his funds. If the manager switched funds, 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.