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A mutual fund factsheet is one of the most important documents for investors, yet many people skip it and rely only on past returns while choosing a fund. Just as you would check the specifications of a car before buying it, engine, safety features, mileage, and overall performance, mutual fund factsheet helps you understand the complete profile of a mutual fund before investing.
It provides essential details such as the fund’s objective, category, investment strategy, past performance, portfolio holdings, risk level, expense ratio, and fund manager history. Reviewing these parameters is crucial because it helps you judge whether the fund truly fits your financial goals and risk tolerance.
In this blog, we will explain what is mutual fund factsheet, why it is important, and how to read factsheet each section correctly so you can evaluate funds with the same clarity and confidence as a professional.
What Is a Mutual Fund Factsheet?
Before learning how to read a mutual fund factsheet, let us understand what is factsheet.
A mutual fund factsheet is an informative document published by Asset Management Company (AMC) for every mutual fund scheme they manage. If an AMC runs 10 different schemes, it must publish 10 separate factsheets, each containing complete details about the respective scheme. You can think of a factsheet as the report card of a mutual fund. Just like a student’s report card summarises academic performance, a factsheet provides key information about the fund, including:
- Investment objective
- Benchmark
- Assets Under Management (AUM)
- Fund manager details
- Plan options (Direct and Regular)
- Minimum investment amount
- Portfolio composition
- Performance history
- Risk indicators
MF factsheet contains details of both plans: Direct and Regular.
- Direct Plan: Investors invest directly through the AMC without any distributor or intermediary. As a result, the cost (expense ratio) is lower.
- Regular Plan: Investments are made through a distributor or agent, and their commission is included in the expense ratio, making this plan slightly costlier.
Is it mandatory to publish a factsheet?
SEBI does not make it mandatory for AMCs to publish monthly factsheets. However, most AMCs voluntarily publish factsheets every month to maintain transparency. SEBI ensures that all factsheets follow a standardised format so investors can compare schemes easily without confusion.
A well-structured factsheet gives investors a clear understanding of the fund’s strategy, performance and risk, making it an essential tool for making informed investment decisions.
How to Read a Mutual Fund Factsheet with Example
Now let us understand the components of mutual fund factsheet with the help of an example. Every mutual fund house presents its factsheet in a slightly different format, but the core information remains the same. As you can see below, both fact sheets begin with a basic description, such as the investment objective of the fund, total AUM and the launch date of the scheme.
To understand a factsheet more clearly, let us pick October 2025 factsheet of Quant Small Cap Fund. This is only an example for explanation, not a recommendation.
Before reading or analysing a factsheet, the first question is: How do you find the Factsheet of Mutual Funds? Just search the name of your mutual fund on Google (for example, “Quant Small Cap Fund factsheet”). OR the factsheet is available on the fund’s official website under sections like Scheme Documents, Documents, or Downloads, usually in both web and PDF formats.
For the Quant Small Cap Fund, the factsheet is available on Quant Mutual Fund website under Investor Hub > Downloads. In the same way, you can download the factsheet of any fund directly from its AMC website.
When you open the factsheet, you will notice that all scheme-wise factsheets are combined in a single PDF. Since our focus is on Small Cap category, we will look specifically at Quant Small Cap Fund’s factsheet.
As soon as you open the Quant Small Cap Fund factsheet, the first section you will see is:
Investment objective
At the top of every mutual fund factsheet, you will find the investment objective, which explains the purpose of the fund and what it aims to achieve. When you create your own investment plan, whether it’s for 3 years or for the long term, your goal should align with the fund’s objective.
For example, if your goal is only 3 years but the factsheet clearly states that the fund is meant for 5 years or long-term investing, you cannot blame the fund if the market stays flat midway. The fund has already specified the appropriate time horizon.
In case of Quant Small Cap Fund, the objective mentioned is “The scheme seeks to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio of small-cap companies.” This makes it clear that the fund is designed for long-term investors.
Fund Size (AUM) and Basic Scheme Details
Next section in the factsheet shows the Fund Size, also known as Assets Under Management (AUM). This tells you how large the fund is. As of 30 September 2025, Quant Small Cap Fund had an AUM of ₹29,288 crore.
Right after the AUM, the factsheet displays the Inception Date, Fund Manager details, Exit Load, Benchmark and Risk Level. These elements give you a quick snapshot of the fund’s background and structure.
For example, Quant Small Cap Fund was launched on 29 October 1996, making it one of the older funds in the category. An older fund offers the benefit of a long performance history, which helps in deeper analysis.
Factsheet also lists the fund manager, the person responsible for managing the portfolio.
Exit load for this fund is nil after one year. However, if you redeem your investment within 1 year, an exit load of 1% may apply.
Fund’s benchmark index is Nifty Smallcap 250 TRI, indicating that the scheme primarily invests in small-cap companies. Small-cap funds can be more volatile than large-cap or mid-cap funds, and the risk-o-meter for this scheme also indicates very high risk. Such funds are suitable only for investors who can handle sharp fluctuations.
Portfolio Holdings and Sector Allocation
Factsheet also includes a detailed breakdown of the fund’s portfolio holdings. These are usually listed in descending order based on allocation, meaning the stock with the highest weight appears first.
In the Quant Small Cap Fund, the highest allocation is in Reliance Industries – 9.11%, Jio Financial Services – 6.06% …and so on.
Alongside individual holdings, factsheet also provides sector-wise allocation. This helps you understand how diversified the fund is across industries. For this fund Financial Services – 17.8%, Healthcare – 14.7% …and so on.
Factsheet also shows market-cap allocation, indicating how the fund is distributed across large-cap, mid-cap and small-cap stocks. For the Quant Small Cap Fund:
- Small Cap: 66.83%
- Mid Cap: 2.16%
- Large Cap: 23.56%
All the details are available in the factsheet. I have provided the link and you can open it in a new tab while reading the blog for better understanding.
Quant Small Cap Fund factsheet does not mention cash holdings, but many other funds do. For example, as you can see in the screenshot attached below, Invesco India Small Cap Fund has 2.18% in cash and cash equivalents.
This factsheet also includes fund manager details along with their experience. The level of information varies from one factsheet to another.
Risk Metrics You Must Check before Investing in a Mutual Fund
Critical ratios help you understand a fund’s risk and return profile. Most investors focus only on past performance, usually annualised returns, and ignore these essential risk metrics. However, evaluating ratios along with rolling returns gives a far clearer picture of how the fund actually behaves in different market conditions.
I have explained these metrics in detail earlier in this blog.
Here’s a quick and clear revision of the most important ones:
-
Sharpe Ratio: Sharpe Ratio shows how much extra return the fund has generated for every unit of risk taken.
Higher = Better, because it indicates superior risk-adjusted returns. -
Sortino Ratio: Similar to Sharpe Ratio, but it considers only downside risk and ignores upside volatility.
Higher = Better, as it shows the fund handles market declines efficiently.. - Standard Deviation (SD): Standard Deviation shows how much the fund’s returns deviate from their historical average.
- Lower SD = More stable and predictable
- Higher SD = More volatile and risky
- Beta: Beta measures how volatile the fund is compared to its benchmark.
- Beta = 1, Moves in line with the benchmark
- Beta > 1, More volatile than the benchmark
- Beta < 1, Less volatile than the benchmark
- Alpha: Alpha indicates how much extra return the fund manager has generated over the benchmark.
- Positive Alpha = Strong performance
- Negative Alpha = Underperformance
-
Expense Ratio: This is the fee charged by the mutual fund for managing your investment.
Lower expense ratio = Better, because lower cost means higher net returns. - Portfolio Turnover Ratio: This shows how frequently the fund buys or sells its holdings within a year.
- Low Turnover = Stable strategy and lower costs
- High Turnover = More churning and potentially higher expenses
-
Downside Deviation: This tells you how much the fund’s returns fluctuate below the average return.
Lower downside deviation = Better risk control -
Upside Deviation: This shows how much the fund’s returns deviate above the average return.
Higher upside deviation = Better participation in market rallies - Downside Capture Ratio: Measures how much the fund falls compared to the benchmark when markets decline. A fund with Downside Capture Ratio below 1 falls less than the market, which is ideal.
- Upside Capture Ratio: Shows how much the fund rises compared to the benchmark during market rallies. A fund with Upside Capture Ratio above 1 performs better than the market in rising phases.
Quant Small Cap Mutual Fund Performance
After reviewing the key ratios, the next section to check is Fund Performance. The performance table shows how Quant Small Cap Fund has delivered returns across different periods.
Source: Quant MF Factsheet
- Over 6 months, the fund’s direct plan delivered slightly lower returns than its benchmark, Nifty Smallcap 250 TRI. However, on a YTD basis, the fund recorded –3.64%, while the benchmark stood at –6.34%, meaning the fund fell less than the index.
- In 1 year, both delivered negative returns. The fund returned –10.53%, compared to the benchmark’s –8.82%, indicating a slightly weaker short-term performance.
- But over the long term 3 years, 5 years and since inception, Quant Small Cap Fund’s direct plan has outperformed its benchmark.
- ₹10,000 lump-sum investment since inception would have grown to ₹79,878 today ( 30 September 2025).
- If you had invested ₹10,000 per month in Quant Small Cap Fund since its inception, your total investment by 30 September 2025 would be ₹15.3 lakh, and its value would have grown to ₹71,32,356. This strong SIP return highlights how long-term investing in the best mutual fund can create wealth. Refer to the factsheet to verify the data.
What Are Rolling Returns?
After reviewing short-term and long-term performance, the next question is how consistent a fund has been over different periods. This is where rolling returns become important.
Rolling returns help you understand how steadily a fund performs despite short-term market fluctuations. They show whether the fund has delivered reliable results across various time frames.
Quant Small Cap Fund factsheet does not include rolling returns, but some AMCs, such as Parag Parikh Flexi Cap Fund, do provide them. As you see the attached screenshot below, Parag Parikh Flexi Cap Fund’s direct plan has delivered consistent rolling returns over 3-year, 5-year and 10-year periods, outperforming its benchmark in all three.
This demonstrates the fund’s long-term consistency. Investors should always check rolling returns because they offer a clearer picture of performance across different market conditions. Many other financial websites also provide rolling returns of mutual funds
Final Words
Mutual fund factsheet makes it easy to judge whether a fund aligns with your goals and risk profile. It summarises key details such as the fund’s objective, portfolio, risk ratios and performance across different time periods. By checking these points, you can quickly see if the fund has delivered consistent returns and whether the direct plan offers better value. Just as you review a car’s specifications before buying it, reading a factsheet helps you understand the quality of your investment. It only takes a few minutes but can save you from long-term mistakes. Once you build this habit, choosing the best mutual fund becomes much easier.FAQS on Mutual Fund Factsheet
What is a mutual fund factsheet and why is it important?
Mutual fund factsheet summarises essential details about a fund, including its objective, portfolio, performance and risk. It helps investors evaluate whether the fund suits their goals.
How do I find the factsheet of a mutual fund?
You can download the factsheet from the AMC’s official website under Documents or Downloads. Simply search the fund name on Google, and the official link appears easily.
What should I check first in a mutual fund factsheet?
Start with the basics like fund objective, category, AUM, inception date and fund manager details. These help you understand the fund’s purpose and suitability.
Which ratios are important in a mutual fund factsheet?
Key ratios include expense ratio, Sharpe ratio, Sortino ratio, standard deviation, beta and alpha. These show the fund’s risk, return consistency and volatility.
How do I know if a mutual fund is performing well?
Compare the fund’s performance with its benchmark and category over 1-year, 3-year, 5-year and since-inception. Also check rolling returns to judge consistency.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
