Mutual Fund Analysis Tools - Types &
Metrics 2025

Picking the right mutual fund can be tricky with so many options out there. That’s why mutual fund analysis tools are helpful. They let you compare funds, check performance, and make better investment choices. Whether you're just starting or have some experience, these tools make investing easier and smarter.

Forget confusing spreadsheets and big financial words. These tools are like helpful guides, making it easier for you to choose the right mutual funds, no expert knowledge needed.

What are these Mutual Fund Analysis Tools?

They are essentially websites or apps that give you information and analysis about various mutual fund schemes. They compile data on portfolio holdings, risk levels, expenditure ratios, historical performance, and much more, then display it in an understandable manner.

For Example:

Imagine buying a laptop without checking its features or reviews. You wouldn't, right? Similarly, investing in a mutual fund without analysing it is like shooting in the dark. These tools empower you to:

• Compare different Mutual Fund Scheme: See how different funds in the same category stack up against each other.
• Understand of the risk of each category of Mutual Fund: Get a clearer picture of how volatile a fund has been in the past.
• Check the Expenses Ratio: Know how much you're paying in fees (expense ratio); every rupee saved matters.

Which are the Mutual Fund Analysis Tools?

You don't have to look far, Many resources are readily available:

• Online Financial Portals: Websites like Moneycontrol, Morning Star, ET Money, Groww, Zerodha Coin, and others offer comprehensive analysis tools, ratings, and comparisons.
• AMC Websites: Asset Management Companies (AMCs) themselves often provide detailed information and fact sheets about their schemes.
• Financial Advisors: Financial Advisors are not actual tools in the digital sense, however, a good advisor uses these tools (and their experience and expertise) to guide you.
• Mobile Apps: Many of the online portals have user-friendly apps that let you analyze funds on the go.

Use these Matrices without complexities:

Start simple. Focus on a few key metrics initially:

• Past Returns / Performance: Analyse the performance over different periods (1 year, 3 years, 5 years). Remember, past performance is not a guarantee of future returns, but it gives you an idea. Further, in case of Equity Mutual Fund schemes, returns over 3 & 5 years are more important as it is the asset class which is recommended for the long term. Don’t make any decisions based on the 1-year return of the Equity MF scheme.
• Expense Ratio: This is the yearly cost that the fund charges and is factored into the NAV (Net Asset Value) of your fund.  In general, a lower expense ratio is preferable.  However, keep in mind that a higher expense ratio isn't always a bad thing.  It makes sense if the fund generates higher alpha while carrying average risk when compared to other funds in the same category.  Don't choose funds solely based on the expense.
• Risk Metrics: In general, people compare only returns of schemes. However, analysing risk is equally important. It is important to see whether a fund is generating justifiable returns by taking higher risk. Standard Deviation i.e. volatility and Beta i.e. sensitivity to market movements, are two important risk metrics to see to get fair picture. Take your own risk tolerance in to account before diving in.
• Category of Mutual Fund scheme: There are different categories of Mutual Funds which are different risk & returns generating capacity and designed different time frames. Safer the category, lower will be the probability of generating returns and vice versa.

Conclusion

Mutual Fund Analysis Tools are not limited to experienced investors. Tools for analysing mutual funds are not limited to experienced investors.  Anyone who wants to make wise financial decisions should use them. Investigate these materials, go one step at a time, and arm yourself to confidently manage the Indian mutual fund market.  Have fun with your investments!