The Missing Link: Mutual Fund Portfolio Analytics (MFPA)
All Mutual Funds come with a disclaimer – “Mutual Funds are subject to market risks and past performances are not indicative of future performances”.
While looking at past performance indicators is important, what it misses is the risk assessment part of a MF portfolio. Looking into a fund’s holdings using Multi-Act Equity Analytics can give additional insights into whether the current portfolio is in a position to meet the investment objective.
WHAT DOES MUTUAL FUND PORTFOLIO ANALYTICS DO?
Assess the quality of the businesses in the portfolio
Looks at the reward to potential risk ratio inherent in the stocks in the portfolio
Delves into the momentum, both earnings as well as technical
Compares the relative risks, pros & cons of one Mutual Fund Portfolio against another and compared to benchmarks
HOW WE DEILVER?
HOW DOES MFPA BENEFIT YOU?
Take MF analysis beyond past performance
Add a dimension to your existing equity MF filtering process
Compare and rank business quality, valuation and market risk vs. peers and major indices
Understand risks in the current portfolio
Objectively assess if the fund manager is walking the talk
Improve client confidence
Sample 1: How different Equity MFs are placed on Valuation Basis
*FV: Fair value based on Multi-Act’s GRAF approach; P/FV: Price/Fair Value
Based on Multi-Act’s proprietary valuation framework, Mutual Fund Analytics can help identifying which funds are cheaper than or closer to benchmark valuations.
Valuation comparison even helps identify funds to avoid from a 3-5 year time frame perspective.
Sample 2: How different Equity MFs are placed on Business Quality Basis
*Grade as per Multi-Act’s GRAF approach; HQ: High Quality
Based on Multi-Act’s proprietary framework, MF Analytics can help identifying which funds have better or at par business quality as compared to benchmark.
Good quality businesses tend to face lower draw-down during severe market downturns.
Sample Analysis: How different Equity MFs are placed on Technical Momentum Basis
Funds with relatively higher proportion of technically weak stocks can face near term under performance.
We have been in the mutual funds advisory business for decades now and have subscribed to the equity mutual funds portfolio diagnostics of Multi-Act.
It is very fascinating! First time in India, and maybe even globally. Not seen anything similar from any of the other providers, and that maybe due to 18 long years of unique equity research capabilities that Multi-Act has developed and the large team of 25 plus analysts it has.
Mukesh DedhiaC.A, CFPCM, FRM (From GARP, USA), 2 Levels of CFA (USA). Faculty at Management Schools
Portfolio Management Services (SEBI Registration No. INP000002965) are offered through Multi-Act Equity Consultancy Private Limited (CIN: U67120PN1993PTC074692), which is a wholly-owned subsidiary of Multi-Act Trade and Investments Private Limited; Investment Advisory Services (SEBI Registration No. INA000008589) are offered through Multi-Act Trade and Investments Private Limited (CIN: U65920MH1997PTC109513).