When choosing Mid & Small Cap Funds, it is better to go with Actively Managed Funds than their respective Index ETFs. Reason being lesser correction during broader market correction / down years.
Track Record: At least 6 to 8 years.
AUM: Should be healthy at least Rs 100 Crore for every year of its operation and must have strong SIP Flow (Mostly known by the fact of increasing AUM )
Quartile Ranking For how many quarters the Fund has stayed in Top Quartile of Returns when compared to Peers.
Out-performance Vs Benchmark Look how long it has been above the benchmark on Rolling Returns Parameter. Outperformance must be at least 65% of the time.
Volatility is measure of fluctuation of funds NAV with all else being equal. High Volatility mean High Reward but expect Steep Loss when it is not in your favor. Typically expressed as Beta of the MF. If beta > 1, the fund is more volatile than the benchmark. If beta < 1, it is less volatile
Standard Deviation Use this and broadly get to know the range of future returns.
Now using these Parameters let me find out the good ones for self investment.
