Fund Selection Policy

Money Yatra Associates LLP follows a structured, research-backed process for selecting mutual fund schemes to recommend to investors, ensuring alignment with AMFI guidelines and investor suitability.

Fund Selection Process

UNIVERSE DEFINITION Start with the universe of SEBI-registered mutual fund schemes available through empanelled AMCs via BSE Star MF. Only Regular Plan schemes are considered (as permitted for MFD distribution).

QUANTITATIVE SCREENING Filter schemes based on:

Minimum 3-year track record (where available);
AUM above Rs. 500 crore for equity schemes;
Consistent rolling returns over 1/3/5/7 year periods;
Risk-adjusted returns (Sharpe ratio, Sortino ratio);
Base Expense Ratio (BER) comparison within category.

QUALITATIVE ASSESSMENT Evaluate:

Fund manager experience and tenure;
AMC track record and governance;
Investment process consistency;
Portfolio concentration and sector allocation;
Cash holding patterns;
Benchmark adherence and tracking error (for passive schemes).

SUITABILITY MAPPING Map shortlisted schemes to investor risk profiles using the Suitability Matrix. Ensure category-level alignment (e.g., Large Cap for Conservative, Multi Cap for Growth, Small Cap for Aggressive). Maximum assumed CAGR: 12% per annum (firm policy cap).

RECOMMENDATION & DOCUMENTATION Final shortlist is presented to the investor with category rationale, scheme comparison, and risk factors. The recommendation is documented in the Client Recommendation Format with scheme name, category, risk rating, and suitability justification.

PERIODIC REVIEW Recommended scheme list is reviewed quarterly. Schemes that consistently underperform benchmarks over rolling periods or undergo material changes (fund manager exit, AUM erosion, process drift) are flagged for replacement.