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Flight 4 · Lesson 4 of 6

How to Read a Fund Factsheet

Choose investments that match your goals, not someone else's.

1 min readEducation, not advice

Every fund publishes a one or two page factsheet monthly. Read five things. The category and benchmark tell you what the fund is supposed to do. The expense ratio tells you the cost. The fund manager's name and tenure tell you who has built the record.

The top ten holdings and sector weights tell you what you actually own; if two of your funds share eight of their top ten, you are not diversified, you are doubled. The returns table shows 1, 3, 5 and 10 year figures against the benchmark; look at the 5 and 10, and at how far the fund trailed or led the benchmark in bad years.

Skip the marketing copy. The numbers on page two are the factsheet. Crowwd reads every factsheet for each fund on its shelf and writes the reasoning in plain words, but the source is always available to you.

Buzz Bite

Benchmark, cost, manager tenure, top ten holdings, five-year number. Five lines, then decide.

In this Flight
  1. Matching Funds to Financial Goals
  2. SIP vs Lump Sum
  3. Growth vs IDCW
  4. How to Read a Fund Factsheet
  5. What Makes a Good Mutual Fund?
  6. Understanding Fund Ratings
← Growth vs IDCWWhat Makes a Good Mutual Fund? →

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