Reading a Fund Factsheet
Lesson 5 of 5 in Mutual Funds & SIP Mastery · 7 min read
Every AMC publishes a monthly factsheet. Here is what to look for.
Objective and benchmark
The stated objective tells you what the fund is trying to do. The benchmark is the yardstick for performance.
Portfolio
Top holdings and sector allocation reveal concentration. A fund with more than half its money in ten stocks behaves differently from a widely diversified one.
Portfolio turnover
High turnover may indicate frequent trading and can raise hidden costs.
Riskometer
SEBI's riskometer ranges from Low to Very High. Make sure the level matches your own risk profile.
Fund manager and AUM
Note the manager's tenure and the fund's size relative to its category, especially for small-cap funds.
Key takeaways
- Check objective, benchmark and portfolio
- Look at concentration and turnover
- Note the riskometer level