How-to factsheet comparison peer review

How to compare mutual fund factsheets across schemes

From WebNotes, a public knowledge base. Last updated 19 May 2026. Reading time ~5 min.

Key facts

Comparison scope	Schemes within same SEBI category (apples-to-apples)
Number of peers	3-5 typically; 10 max for thorough review
Key metrics	5Y/10Y return, TER, AUM, manager tenure, risk-adjusted (Sharpe)
Decision criterion	Weighted comparison aligned with your objective

Comparing mutual fund factsheets across peer schemes is the standard analytical step before subscription. The methodology is straightforward: same category, same metrics, same period for comparison, and weighted scoring aligned with your objectives.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC. No affiliate commission is earned. Past performance is not indicative of future returns.

Step-by-step procedure

See the procedure infobox above.

Standard comparison metrics

Category	Metric	Best when
Return	5Y CAGR, 10Y CAGR	Higher = better
Risk-adjusted return	Sharpe ratio	Higher = better
Risk	Standard deviation	Lower = better (for same return)
Risk	Beta	Lower = less market sensitivity
Active management	Alpha	Higher = manager value-add
Cost	Direct TER	Lower = better
Scale	AUM	Larger = more liquid
Continuity	Fund manager tenure	Longer = manager attribution clearer
Stability	Active share	Variable; high = more contrarian

Comparison spreadsheet template

Scheme	5Y CAGR	10Y CAGR	TER	AUM (Cr)	Sharpe	Std Dev	Beta	Alpha	Manager Tenure
Scheme A	12.5%	14.2%	0.5%	25,000	0.8	14%	0.95	1.5%	8 yr
Scheme B	11.8%	13.5%	1.5%	5,000	0.65	16%	1.05	0.5%	3 yr
Scheme C	13.2%	14.5%	1.2%	15,000	0.85	13%	0.92	2.0%	12 yr
Category avg	11.5%	13.0%	1.3%	n/a	0.7	15%	1.0	0%	n/a

Weighted scoring

If returns matter most:

5Y return × 0.4 + 10Y return × 0.3 + Sharpe × 0.2 + TER × 0.1 (inverted)

If cost matters most:

TER (inverted) × 0.5 + 5Y return × 0.3 + Sharpe × 0.2

Build the weights to your priorities. Pure index investors weight TER heavily; active investors weight Sharpe and alpha.

Qualitative overlays

Beyond pure metrics:

AMC governance / reputation: SBI / HDFC / ICICI Pru / Axis are large with strong process discipline.
Manager track record across schemes: Has the manager outperformed across different roles?
Style consistency: Does the scheme stick to its category vs drift to chasing fads?
Regulatory comfort: Recent SEBI investigations or governance issues affect comfort.
Investor service quality: Operational responsiveness.

Red flags during comparison

Highest 1Y return often = highest mean-reversion: Top performer often underperforms next year.
AUM > Rs 50,000 cr in small-cap category: May indicate capacity strain.
TER materially higher than peers: Cost drag.
Frequent fund-manager changes: Style attribution fragmented.
Alpha negative over 5+ years: Active management not adding value.
Sharpe < 0.5: Risk-adjusted return below market.

External references

References

SEBI (Mutual Funds) Regulations, 1996.
SEBI Master Circular for Mutual Funds - factsheet disclosure.
AMFI Best Practice Guidelines.
SPIVA India scorecards.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 19 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.