This is a unique and very simple method to identify the top trending category of Equity Mutual Funds. Mutual Fund advisors further apply various ratios and methods to identify the best scheme under these trending categories, but this RWM ( Rank Weightage Method) is still the best and successful approach to identify the category.
Just for the knowledge of beginners, Category of a Mutual Fund is a broader group of schemes of similar nature , like- Mid Cap category will have all the Mid Cap Schemes, Technology Category will have all the Technology Schemes and so on... in order to identify the winning scheme, one should identify the trending category first !
What is RWM ( Rank Weightage Method) method ?
This is a simple method of category identification, which uses the Category-wise ROI% over various time period, ranging from Short term to Long term like- in our table, we have taken the category-wise ROI ranking over 1 month, YTD, 3 Yrs, 5 Yrs and 10 Yrs. Each categories Ranking under these periods are added at the last column - this total is called as 'Total Rank Weightage' . In our sample size of 25 categories, we have excluded all such categories which has a total weightage above 100.
As per the RWM approach, the Top 3 favourite categories are Technology Funds, Infrastructure Funds and Small cap Funds.
For those who want to avoid sectoral Risk, Top 3 categories are : Small Cap Funds, Midcap Funds and Flexi Cap Funds
Given below is the list of all schemes (PDF attachment), under the Top trending categories mentioned above. Check them and call us freely for opening SIPs or investing your lump-sum amounts . You can order at 9307218766 or E mail at email@example.com , for safe & fast online transactions.
The views and analysis presented here are personal in nature and belongs to the author of this article. Investors are suggested to check their respective Risk profile before investing in any of the above schemes
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.
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