What is a Factsheet?

A factsheet is the most reliable guide an investor can access to get detailed information on a scheme at one go. Have you seen what a monthly report card of a student looks like? It covers not only the academic performance-related aspects of the child but the child’s behavior, participation in extra-curricular activities, attendance, discipline, and everything about the child that you need to know. The report card also shows the child’s performance in comparison with the class average.  

The same goes with a fund factsheet. It covers important aspects of the fund that every prospective or existing investor must know like investment objective, benchmark, AUM, fund managers, features like options available, minimum investment amount, exit loads applicable, and NAVs of different plans. The factsheet then covers important performance and risk parameters like standard deviation (measure of volatility), beta, Sharpe ratio, expense ratio of different plans, and portfolio turnover for equity funds while duration, average maturity, and portfolio yield are disclosed for debt funds. 

The factsheet also shows portfolio holdings for the previous month across sectors and securities. It showcases the fund’s historic performance in comparison to its benchmark and specifies the risk level of the fund. In short, the factsheet provides you with every critical bit of information that you must know as an investor.