What are the Quantitative Analysis parameters are used for picking top mutual funds?
Stability of Returns: Historical performance of fund is checked in different market conditions.
Quartile Ranking: Funds Quarter on Quarter Performance is ranked and checked for consistency.
Peer Group Average: Funds performance is compared to its Peer Group to evaluate its position.
Standard Deviation: measures the volatility the fund's returns in relation to its average. It tells how much the fund's return can deviate from the historical mean return of the scheme.
Sortino Ratio: The return value can go both upwards and downwards from its standard value. This is called deviation. Sortino Ratio only considers downside deviation as a risk as the upward deviation is beneficial for the investor. This gives us a fair value of returns per unit of risk.
Active Return: Returns excess over benchmark are called Active Returns. They largely Depend on the Fund Managers Selection Strategies.