A structured, documented, and repeatable process for identifying and recommending mutual fund schemes — based entirely on objective analysis, never on commission incentives.
Our fund selection follows this step-by-step process. No scheme is recommended without completing all steps.
Based on client's goal, investment horizon, and assessed risk profile — identify the suitable MF category (Large Cap, Mid Cap, Small Cap, Flexi Cap, Hybrid, Debt, ELSS, Index, etc.)
Evaluate AMC reputation, total AUM size, regulatory track record (no SEBI action), fund management team stability, and operational efficiency
Compare rolling returns across 1-year, 3-year, and 5-year periods against the scheme's benchmark index and category average. Avoid relying only on point-to-point returns
Evaluate Sharpe Ratio (return per unit of risk), Sortino Ratio (downside risk), Standard Deviation, and Maximum Drawdown to assess risk-reward balance
Compare expense ratios within the peer category. Lower expense ratio is preferred as it has a significant impact on long-term wealth creation
Assess fund manager's tenure with the scheme, track record across market cycles, and investment style consistency. Flag schemes with more than 2 fund manager changes in 3 years
For equity funds: check sector concentration, single-stock exposure, and market-cap allocation. For debt funds: check credit quality (minimum AA-), maturity profile, and concentration risk
Map each shortlisted scheme to its SEBI Riskometer category (Low to Very High) and match to client risk profiles (Conservative / Moderate / Aggressive)
Final recommended scheme list reviewed and approved before being used for client distribution. No scheme is recommended without sign-off
Recommended list reviewed every year. Underperforming schemes replaced based on the same objective criteria. Ad-hoc reviews triggered by major market events or regulatory changes
Every investor is mapped to one of six risk profiles. Investment recommendations are made only within the appropriate category.
| Risk Profile | Short Term (<3 Years) | Medium Term (3–7 Years) | Long Term (>7 Years) |
|---|---|---|---|
| Very Conservative (0–15%) | Overnight, Liquid, Money Market. Equity: 0%, Debt: 100% | Ultra Short Duration, Floating Rate. Equity: 0–5%, Debt: 95–100% | Short Duration, Banking & PSU, Gilt. Equity: 0–10%, Debt: 90–100% |
| Conservative (16–30%) | Liquid, Ultra Short Duration, Arbitrage. Equity: 0–10%, Debt: 90–100% | Short Duration, Conservative Hybrid. Equity: 10–25%, Debt: 75–90% | Conservative Hybrid, Large Cap (up to 15%). Equity: 15–30%, Debt: 70–85% |
| Moderate (31–50%) | Ultra Short Duration, Conservative Hybrid. Equity: 15–25%, Debt: 75–85% | Balanced Hybrid, Aggressive Hybrid, Large Cap. Equity: 35–50%, Debt: 50–65% | Flexi Cap, Multi Cap, Large & Mid Cap, ELSS. Equity: 50–65%, Debt: 35–50% |
| Moderately Aggressive (51–70%) | Equity Savings, Aggressive Hybrid. Equity: 25–40%, Debt: 60–75% | Flexi Cap, Multi Cap, Focused Fund. Equity: 50–70%, Debt: 30–50% | Flexi Cap, Mid Cap, Value/Contra, ELSS. Equity: 65–80%, Debt: 20–35% |
| Aggressive (71–85%) | Aggressive Hybrid, Dynamic Asset Allocation. Equity: 30–50%, Debt: 50–70% | Mid Cap, Flexi Cap, Sectoral/Thematic. Equity: 65–85%, Debt: 15–35% | Mid Cap, Small Cap, Sectoral, Thematic. Equity: 80–100%, Debt: 0–20% |
| Very Aggressive (86–100%) | Aggressive Hybrid, Focused Equity. Equity: 40–60%, Debt: 40–60% | Small Cap, Sectoral, International Equity. Equity: 75–100%, Debt: 0–25% | Small Cap, Micro Cap, Sectoral, International. Equity: 90–100%, Debt: 0–10% |
The following are automatically excluded from our recommended list:
Schemes from AMCs under SEBI regulatory action or warning
Schemes with high portfolio concentration in a single stock or sector beyond category norms
Debt schemes with significant exposure to below-investment-grade (below AA-) securities
Schemes with more than 2 fund manager changes in the last 3 years
Close-ended or interval schemes unless specifically required for a client's goal
If a client insists on investing in a scheme that exceeds their risk profile ceiling, a written Unsuitability Declaration is obtained. This declaration clearly states that:
The declaration is signed by the investor and maintained in records as per AMFI DDQ requirements.
Get2ndIncome declares that:
