✨How iNVESTT Select Mutual Funds
PreviousI don’t know which portfolio is best for me. What should I do?NextHow iNVESTT Track Mutual Funds?
Last updated
Last updated
Historically, from 1991 until today, only 50 equity mutual funds have delivered consistent returns for specific periods. The longest tenure of consistent performance was 12 years, achieved by the HDFC FlexiCap Fund.
To identify future top-performing mutual funds, it's crucial to understand the behaviors of historically successful funds. It took us 11 months to identify the patterns of these top funds.
iNVESTT selects mutual funds that follow these patterns, a method we call the Golden Triangle Strategy. This strategy will identify limited number of funds with great returns potential.
When you are dealing with Mutual funds - You already know how the fund has performed in the past and it's easier to tell whether the fund is Good or Not.
But when it comes to investing for the future - You don't know how well the fund will perform compared to its benchmark and its peers.
Remember this - A fund is said to be the best mutual fund if it is capable of beating its benchmark in future, Not in the past.
The biggest mistake investors make is to believe that what happened in the recent past is likely to persist.
They assume that something that was a good investment in the recent past is still a good investment. Typically less than 20% of best mutual funds in the past remain to be the best mutual funds in future.”
Hence, The Golden Triangle is about identifying the best mutual fund (20%) by understanding behavioral analysis of the fund.
And this method helps you to achieve your goals in the fastest way without worrying about underperformance.
The Golden triangle is about understanding 3 parameters that filter the best mutual funds by avoiding the worst funds.
5 Year Rolling Average > Index
Chance of beating Market > 70%
Sharpe ratio > Index
We do not rely solely on these three parameters; however, our primary algorithm is based on them. Additionally, it's not just the parameters that help identify the fund. It's crucial to understand the specific time frames in which we apply these parameters.
| Fund Name | Selected Year |
|---|---|
Aditya Birla Sun Life ELSS Tax Relief '96 - Growth Option Equity Scheme | 2016 |
Aditya Birla Sun Life Frontline Equity Fund-Growth | 2007 |
Axis Midcap Fund - Regular Plan - Growth | 2015 |
BANDHAN Sterling Value Fund - Regular Plan - Growth | 2016 |
CANARA ROBECO EMERGING EQUITIES - REGULAR PLAN - GROWTH OPTION | 2015 |
CANARA ROBECO FLEXICAP FUND - REGULAR PLAN - GROWTH OPTION | 2013 |
DSP Small Cap Fund - Regular - Growth | 2015 |
Franklin India Smaller Companies Fund-Growth | 2013 |
Nippon India Small Cap Fund - Growth Plan - Growth Option | 2014 |
There are 40 other funds that have satisfied the Golden Triangle Strategy at different times. Every top-performing fund in history met the criteria of the Golden Triangle method before delivering high returns. Every future top-performing fund will also align with this strategy. It is a proven and reliable method for filtering the best mutual funds.
