We have identified the best
equity-oriented schemes available in the market today based on
the following parameters: the past performance as indicated by
the returns, the Sharpe ratio and Fama (net
selectivity).
The past performance is measured by the
returns generated by the scheme. Sharpe indicates
risk-adjusted returns, giving the returns earned in excess of
the risk-free rate for each unit of the risk taken.
FAMA measures the returns generated through
selectivity, ie the returns generated because of the fund
manager's ability to pick the right stocks. A higher value of
net selectivity is always preferred as it reflects the stock
picking ability of the fund
manager.