What it is
- A score from 0 to 10, to two decimals. Higher is better.
- Measured against true peers. Each fund is scored within its NGEN classification: finer peer groups built on top of the SEBI categories, so a technology fund is compared with technology funds, not with every sectoral fund.
- Built on risk-adjusted returns. Most of the score comes from the fund's Sharpe ratio over one, three and five years. A small part reflects the fund's size.
- The same rules for every category. One method, applied the same way everywhere.
- Refreshed every month. Scores are computed for each month-end and refined as the month's fund disclosures complete.
- History kept. See how a fund's score has moved month by month, and download the history to Excel.
How the score is built
The ngenFundScore is built mainly from risk-adjusted return: the return a fund earned above a risk-free rate for each unit of risk it took, which is its Sharpe ratio. We look at three windows, one, three and five years, and give them equal importance, so a fund needs a consistent record, not one good year. A small allowance for fund size completes the score.
Every part is scored against the fund's own peer group, and the parts are combined into one number from 0 to 10. The risk-free rate is the 10-year Government of India bond yield.
Two companion scores
Click the score on any fund page to see two more, also from 0 to 10 against the same peers:
- Risk Score: how low the fund's volatility has been over one, three and five years. Calmer funds score higher.
- Return Score: how strong the fund's returns have been over the same windows.
Which funds are scored
- Actively managed funds with at least one year of prices. Until then a fund shows no score.
- Index funds and ETFs are not scored. Passive funds track the same index, so there is no meaningful spread between them to score.
- Younger funds are not marked down. A fund with less than three or five years of prices gets the middle mark, 5 out of 10, for each window it doesn't have yet.
- Direct and Regular plans share one score.
Where you'll find it in NGEN Markets
- The fund page: the score sits next to the fund's name. Click it for the Risk and Return Scores, the score history and how the fund ranks against its peers.
- The screener: a column you can sort and filter on.
- Compare: FundScore, Return Score and Risk Score columns for every fund in your list, and a risk-versus-return view built on the scores.
- Client portfolios: each holding's score, and a weighted score for the mutual-fund part of a portfolio.
- NGEN PRO strategy templates: model portfolios use a minimum score as one of their selection rules.
Want to see it in use? Watch our training session Building model portfolios using NGEN fund scores (also in Hindi).
What the score is not
The ngenFundScore describes how a fund has performed against its peers in the past. It is a research tool for financial professionals, not investment advice and not a recommendation to buy, hold or sell any fund. Past performance does not guarantee future results.