How to read a mutual fund factsheet — the 8 numbers that matter
Every fund publishes a monthly factsheet. Here's what each section actually tells you — and the three lines most investors skip that matter most.
Every mutual fund publishes a one- or two-page factsheet each month. It looks dense, but only about eight numbers on it actually help you understand the fund. Here's the map.
1. Category and benchmark
Top of the page. The SEBI category (large cap, flexi cap, etc.) tells you the rules the fund must follow; the benchmark (e.g. Nifty 100 TRI) is the index it's trying to beat. A fund that can't beat its own benchmark over 5+ years is worth a second look — compare on the fund's page.
2. AUM (Assets Under Management)
How much money the fund manages. Bigger isn't automatically better — here's when size actually matters (it matters more for small caps than large caps).
3. Expense ratio
The annual fee, deducted daily from NAV. For a direct plan this should be well below the regular plan's — the gap compounds against you. See our expense-ratio explainer.
4. Returns table (the part everyone over-reads)
Trailing 1Y / 3Y / 5Y returns, usually next to the benchmark's. Two cautions: point-to-point trailing returns are flattered or hurt by the single start date, and past returns don't predict future ones. Rolling returns are the honest version.
5. Portfolio — top holdings and sectors
The stocks and sectors the fund actually owns. This is where you spot overlap: if two of your funds list the same top 10 stocks, you're paying two fees for one portfolio — check any two funds here.
6. Standard deviation and Sharpe ratio
Standard deviation measures how much the fund's returns bounce around — higher = wilder ride. Sharpe ratio is return earned per unit of that risk — higher is better. Useful for comparing two funds in the same category.
7. Fund manager and tenure
Who runs it, and for how long. A stellar 10-year record means little if the manager who built it left last year.
8. Exit load and minimum investment
The penalty for leaving early (exit loads explained) and the smallest SIP/lumpsum the fund accepts.
The three lines most people skip
- Portfolio turnover — how often the manager trades. Very high turnover means higher hidden costs.
- Since-inception CAGR — the full-life record, harder to cherry-pick than 1Y.
- The date — a factsheet is a monthly snapshot. Holdings you see are from month-end, not today.
You don't need to memorise a factsheet. On NiveshLens, each fund page already surfaces these — FundScore, rolling returns, holdings and costs — computed from the same public data.
NiveshLens is an independent analytics platform, not a SEBI-registered investment adviser. Everything above is education — how these products work — not a recommendation to buy or sell anything. Verify current figures before acting.