Fund Selection Process Flow
01
Category Mapping
Matching asset classes to your goals and risk score.
02
AMC Scrutiny
Evaluating brand reputation, AUM, and management stability.
03
Rolling Returns
Analyzing performance across 1, 3, and 5-year cycles.
04
Risk-Adjusted Ratios
Measuring Sharpe, Sortino, and Beta for efficiency.
05
Expense Ratio Analysis
Optimizing for lower costs to improve net returns.
06
Manager Track Record
Reviewing fund manager tenure and style consistency.
07
Portfolio Quality
Checking concentration risk and credit quality (Min AA-).
08
Riskometer Alignment
Matching scheme risk labels with investor tolerance.
09
Internal Sign-off
Final validation of the recommended shortlist.
10
Active Monitoring
Annual performance review and objective replacements.
Suitability Matrix
| Risk Profile | Score Range | Indicative Allocation | Recommended Assets |
|---|---|---|---|
| Conservative | 12 – 19 | Debt: 75% | Equity: 10% | Gold: 15% | Liquid, Short Duration Funds |
| Moderately Conservative | 20 – 26 | Debt: 55% | Equity: 30% | Gold: 15% | Conservative Hybrid, Large Cap |
| Moderate | 27 – 33 | Debt: 35% | Equity: 50% | Gold: 15% | Balanced Advantage, Hybrid |
| Moderately Aggressive | 34 – 40 | Debt: 15% | Equity: 75% | Gold: 10% | Flexi Cap, Large & Mid Cap |
| Aggressive | 41 – 48 | Debt: 5% | Equity: 90% | Gold: 5% | Mid Cap, Small Cap, Sectoral |
Exclusion Criteria
✕
AMCs under SEBI regulatory action
✕
Schemes with extreme sector concentration
✕
Debt below AA- credit quality
✕
Fund Manager churn (>2 in 3 years)