Screener For Mutual Funds: What Is It and How It Helps in Fund Selection?

Characterised by sharp price swings and uncertainties, market volatility can significantly impact investment returns.

The Indian equity market has eroded investors' wealth so far in CY2025. The bellwether, BSE Sensex posted -5.6% absolute returns in February 2025, the BSE Large Cap Index -6.6%, whereas the BSE Mid Cap Index and the BSE Small Cap Index, -10.5% and -13.8%, respectively in February 2025.

[Read: Navigating Market Volatility: Why Time in the Market Is Better Than Timing the Market]

During such times, investors must be even more cautious about their investment choices, as picking the wrong fund can lead to substantial losses.

One of the worst mistakes investors can make is to rely excessively on past high returns, which are in no way indicative of future returns, or simply follow what their families, friends, or neighbours are doing. Investing is a highly individualistic exercise, there is no one-size-fits-all approach.

A well-diversified portfolio comprising some of the best and most suitable equity mutual funds can weather the adverse effects of market fluctuations and reduce the impact of a downturn in any single area.

However, selecting the right mutual funds can seem overwhelming in a market flooded with AMCs (Asset Management Companies) and mutual funds.

This is where a screener for mutual funds can be an invaluable resource, helping you decide which worthwhile mutual fund schemes from the respective categories and sub-categories can be added to your portfolio.

Let's understand more about a mutual fund screener and how to use it effectively for making informed investment decisions...

What Is a Mutual Fund Screener?

A mutual fund screener is an online tool you, the investor, can use to compare and analyse the performance of funds on various parameters. These include the asset type, market capitalisation, Net Asset Value (NAV), expense ratio, historical returns, performance across market cycles, risk ratios, portfolio characteristics, and more.

The primary objective of a mutual fund screener is to simplify the investment selection process.

By inputting personal preferences such as risk tolerance, investment horizon, fund type, and performance metrics, you can narrow down the vast universe of mutual funds to a manageable number of options.

Much like comparing iPhone models or cars, mutual fund screeners offer a convenient way to assess, analyse, and compare mutual funds online.

Key benefits of using a mutual fund screener include...

• With a screener, you can filter through thousands of mutual funds based on specific criteria such as performance, risk level, and expense ratios - saving you hours of pouring over individual factsheets.

• If you're seeking funds with a particular management style, asset allocation, or a certain level of historical returns, a screener can tailor the results to your preferences. This way, you can identify funds that align with your financial goals and risk tolerance.

• A screener for mutual funds can help you assess risk by identifying funds with varying risk profiles. You can choose funds that match your risk appetite by analysing factors such as volatility, beta, and fund manager performance - which can be particularly useful in volatile market environments when managing risk is more important than ever to preserve capital.

• A mutual fund screener equips you with detailed data across various metrics - such as past performance, expense ratios, and portfolio composition - allowing for more informed and potentially more successful investment choices.

How to Use a Mutual Fund Screener

PersonalFN's Mutual Fund screener is an easy-to-use online tool. Here's how you can use it to compare mutual fund schemes across categories and sub-categories.

Step 1: Begin by determining your investment goals, whether it's growth, income, or capital preservation. Assessing your risk tolerance, investment horizon, and financial objectives will help you in selecting the right criteria for the screener.

Step 2: Simply select the asset type - Equity/Debt/Hybrid/Other before selecting the scheme category - Large Cap Fund/Mid Cap Fund/Flexi Cap Fund, etc.

Once you have applied your criteria, you will get a list of schemes within the selected category along with PersonalFN's rating, historical returns, and the latest NAV.

Step 3: Select the scheme that you find the most suitable. Click on it to get a detailed fund overview that provides insights beyond basic performance metrics.

You'll see information about the fund's objectives, holdings, performance, fund manager details, and even a handy peer fund comparison.

Step 4: Based on the screener's data and further research, you can choose to invest in a particular fund, assured that it aligns with your long-term growth objectives and risk tolerance.

However, it is crucial to monitor the fund's performance periodically and reassess its alignment with your financial goals, especially in changing market conditions.

Do note that the output derived from using a mutual fund screener is not an investment recommendation. It is simply an online tool that gathers data to filter schemes depending on the parameters you select, allowing you to conveniently compare mutual funds.

Here's what you should keep in mind while comparing mutual funds...

Do not make the mistake of comparing funds on a single criterion, such as past returns. There is no guarantee that a top-performing scheme of a particular period will continue to be a top performer year after year.

It is also possible that the scheme generated superior returns by undertaking high risks, which may not be suitable to your risk profile. A holistic approach is necessary to compare mutual fund schemes.

Further, ensure that you compare a scheme only with other schemes within the same category as well as with comparable indices. Comparing a Large Cap Fund to a Mid Cap Fund is akin to comparing apples to oranges as both categories offer different risk-return profiles.

Avoid comparison based on the NAV of a mutual fund scheme as it does not in any way indicate its future potential. Generally, newly launched schemes have low NAVs, while those that have been around for several years have higher NAVs.

To Conclude...

In the current market volatile environment, where choosing the best and most suitable funds is crucial, a mutual fund screener is an invaluable tool.

It simplifies the investment process and offers a data-driven approach to selecting funds, reducing the potential for human error. Ensure that your investment choices align with your personal risk profile, broader investment objective, the financial goal/s you are addressing, and the time in hand to achieve those goals.

If you're unsure how to go about this, consult a SEBI-registered investment advisor.

Be a thoughtful investor.

Happy investing!

We are on Telegram! Join thousands of like-minded investors and our editors right now.

MITALI DHOKE is a Research Analyst at PersonalFN. She is an MBA (Finance) and a post-graduate in commerce (M. Com). She focuses primarily on covering articles around mutual funds including NFOs, financial planning and fixed-income products. Mitali holds an overall experience of 4 years in the financial services industry.
She also actively contributes towards content creation for PersonalFN’s social media platforms in the endeavour to educate investors and enhance their financial knowledge.
 

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.