Picking Equity Funds? 3 Signs of a Consistent Performer
Not all equity mutual funds beat the market. Before you invest, learn how to screen funds for consistent returns, lower risk, and benchmark-beating performance — so your SIP money actually works harder.
Switching to a consistently performing fund can add ₹3–5 lakh to a ₹5,000/month SIP over 10 years — more than a year's school fees.
80% of actively managed equity funds underperform their benchmark over 10 years
Key Takeaways
Check if your current equity fund has beaten its benchmark (Nifty 50, Nifty Midcap 150, etc.) consistently over 3, 5, and 7 years — not just in one good year.
Compare rolling returns, not just point-to-point returns — a fund that looks good over 3 years may have had long stretches of underperformance in between.
Use free tools on AMFI, Morningstar India, or Value Research to screen funds by Sharpe ratio and standard deviation — higher return with lower volatility is the goal.
Not all equity mutual funds beat the market. Before you invest, learn how to screen funds for consistent returns, lower risk, and benchmark-beating performance — so your SIP money actually works harder.
Here's what happened: Most equity mutual funds fail to consistently beat their benchmark index over a 5–10 year period, according to SPIVA India data.. Fund screeners let investors filter by category, benchmark, risk-adjusted returns, and consistency — key tools for smarter SIP selection.. June 2026 mid-year is a natural checkpoint: many investors review and rebalance their mutual fund portfolio at this time of year..
What you should do: Check if your current equity fund has beaten its benchmark (Nifty 50, Nifty Midcap 150, etc.) consistently over 3, 5, and 7 years — not just in one good year.. Compare rolling returns, not just point-to-point returns — a fund that looks good over 3 years may have had long stretches of underperformance in between.. Use free tools on AMFI, Morningstar India, or Value Research to screen funds by Sharpe ratio and standard deviation — higher return with lower volatility is the goal..
A fund beating its benchmark by just 1–1.5% annually may seem small, but on a ₹10,000/month SIP over 15 years, that gap can compound to over ₹8–10 lakh extra in your corpus.
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This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.