Now Reading: Six flexi-cap funds post Sortino ratios above 1
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Six flexi-cap funds post Sortino ratios above 1
Only six of India’s 45 flexi-cap mutual fund schemes recorded a Sortino ratio above 1, according to Livemint, citing AMFI June data and Value Research calculations. Bank of India Flexi Cap Fund…
The Story in Brief
Only six of India’s 45 flexi-cap mutual fund schemes recorded a Sortino ratio above 1, according to Livemint, citing AMFI June data and Value Research calculations. Bank of India Flexi Cap Fund led the category at 1.18, followed by Parag Parikh Flexi Cap Fund at 1.16 and Motilal Oswal Flexi Cap Fund at 1.08.
The ratio measures returns against downside risk over the past three years, using calendar-month returns for direct plans. Samco Flexi Cap Fund recorded the lowest figure at minus 0.29. Bank of India Flexi Cap Fund also posted higher annualised returns than Shriram Flexi Cap Fund over one, three and five years, but the figures do not predict future performance.
The Indian Opinion
The easy story is that the highest Sortino ratio automatically identifies the best fund. That is too narrow. The measure covers a specific three-year period and focuses on downside volatility, while investors also face fees, tax, portfolio concentration and changing market conditions. The opposite claim, that a low ratio makes a fund unusable, is just as careless. Investors should compare longer records and risk profiles before acting. Will these rankings hold through the next market correction?
Source: livemint.com
This story was synthesised by AI from the source linked above.
