TABLE OF CONTENTS
The 'Mutual Fund' section in the portfolio report gives you a detailed analysis of your mutual fund portfolio’s performance, diversification, benchmark comparison, and risk & return metrics. It does a complete check of your portfolio’s health and gives you actionable insights.
Provides an overview of your mutual fund portfolio’s performance under different categories, including quick daily insights, portfolio score, performance summary, and key risk and return ratios.
1. Quick Daily Insights
This is a brief overview of your MF portfolio’s performance on the current day. It shows information on daily gains, unrealised P&L, current value, and amount invested.
2. Portfolio Score
The MF Portfolio score is the weighted average of Trendlyne’s Checklist Score for the mutual funds in your portfolio. The Trendlyne Checklist Score measures a fund’s performance, portfolio quality, operations, and risk vs reward. Each constituent carries equal weight in the final score.
3. Performance Summary
Provides an overview of your portfolio’s performance based on your total investment, unrealised P&L, and the percentage of gain/loss.
4. Diversification Summary
This checks how your portfolio is diversified across various mutual fund categories and mutual funds.
5. Key Risk and Return Ratios
Risk, volatility, and return check for your mutual fund portfolio.
Provides a detailed view of the performance of your portfolio, under various sections like portfolio performance, asset-wise performance, fund-wise return analysis, and fund-wise performance.
1. Portfolio Performance
Shows the total invested amount, unrealised P&L, and the percentage of gain or loss of your MF portfolio.
2. Asset Wise Performance
A heatmap illustrating your portfolio's gains and losses based on mutual fund categories. It checks which mutual fund categories are performing well and the proportion of unrealised gains or losses from each.
3. Fund Wise Return Analysis
View the historical performance of your portfolio’s mutual funds over 1, 3, and 5 years.
Note that this return analysis is based on historical data, and not related to your purchase price or date.
By clicking on ‘view all mutual funds’, you can see the performance of all the mutual fund investments in your portfolio.
4. Fund Wise Performance
This categorises portfolio performance (P&L) by individual mutual funds. It offers insights into top-performing mutual funds and the percentage of unrealised gains or losses from each mutual fund.
You can view the portfolio performance in Rs format and by ROI (return on investment)
Click on ‘view all mutual funds’ to view the performance (P&L) of all the mutual fund investments in your portfolio.
This section shows you how diversified your MF portfolio is.
1. Asset Distribution
This checks the distribution of your portfolio across various mutual fund categories. An ideal portfolio diversifies across asset classes to reduce market risk and volatility.
2. Fund Distribution
A pie chart representing how your portfolio is diversified among various mutual funds. Achieving the right balance in portfolio diversification is key to minimising market risk and volatility. This involves investing in mutual funds across different categories. Balance is key here as excessive diversification can lower expected returns more than it reduces risk.
In addition to the pie chart, you can also find an insight based on the best-performing mutual fund in your portfolio.
3. Market Cap Distribution for Equity MF
This checks the distribution of your portfolio across different market capitalizations for equity mutual funds. Large-cap stocks are considered to be less risky in comparison to small or mid-cap stocks, but do not have aggressive growth potential.
4. Stock Distribution for Equity MF
This section reviews the weightage of individual stocks in your portfolio. This is calculated by consolidating the weightage of each stock across all your mutual funds, helping you understand your exposure to each stock owned by your mutual funds.
Click on ‘View all stocks’ to see the portfolio share and current value of each stock across all your mutual funds.
5. Debt Exposure
Shows the maturity and credit quality of debt funds in your mutual fund portfolio.
Key Risk and Return Ratios
This checks the key risk and return metrics, to calculate risks and returns over 1, 3, and 5 years.
Beta (β) measures the volatility or systematic risk of your MF portfolio against its benchmarks. A portfolio with a beta higher than 1, means it is more volatile than its benchmarks.
Standard deviation measures the extent to which investment returns differ from the average probability distribution. A higher standard deviation means more risk, with volatile returns. Whereas, lower standard deviation means less risk, with steady returns.
The Sortino ratio measures risk-adjusted returns of a portfolio by focusing on the negative risk in your portfolio returns since positive volatility is a beneficial factor. A ratio between 1 and 2 is favourable, and if it's above 2, it's excellent. A negative ratio is considered poor.
The Sharpe ratio measures risk-adjusted returns. It checks if the excess return gained is in line with the extra risk taken. A higher Sharpe ratio means your investment did well. A ratio of more than 1 is good. If it's more than 2, it's very good, and if it's 3 or more, it's excellent.
Jensen's alpha measures the excess returns from a portfolio compared to what the capital asset pricing model (CAPM) predicted. It is also referred to as ‘alpha’.
Treynor’s ratio measures the excess returns you get for the amount of risk the investment has assumed. It considers market risk instead of total risk. A higher Treynor ratio means the portfolio has done better. If the ratio is negative, it means the investment did worse than a risk-free instrument.