Monthly factsheet — the AMC's monthly disclosure

Monthly factsheets are the most current and actionable mutual fund disclosure. Each AMC publishes detailed monthly factsheets for every scheme — typically 4-6 pages showing current portfolio holdings, allocations, returns, and key metrics. While the SID provides the legal framework, the factsheet shows what's actually in the fund right now.

What factsheets contain

Performance section

• 1-month, 3-month, 6-month returns.
• 1-year, 3-year, 5-year, 10-year CAGRs.
• Since inception return.
• Benchmark comparison for each period.
• Alpha (outperformance vs benchmark).

Portfolio composition

• Top 10 / top 25 holdings.
• Asset allocation (equity vs debt vs cash).
• Sector allocation.
• Market cap breakdown.
• Top sectors and bottom sectors.

Risk metrics

• Standard deviation.
• Beta (for equity).
• Sharpe ratio.
• Maximum drawdown.
• R-squared vs benchmark.

Operational

• Current NAV.
• Current AUM.
• Expense ratio.
• Number of investors.
• Net flows (inflows minus outflows).

Fund manager

• Current manager(s).
• Manager's commentary (sometimes).
• Investment philosophy note.

Why factsheets matter

Verifying alignment with strategy

The SID says the fund will follow a strategy; the factsheet shows whether it actually is. Compare:

• Stated investment objective.
• Actual portfolio composition.
• Sector allocations.
• Market cap positioning.

Misalignment ("style drift") is a red flag.

Tracking changes over time

Compare factsheets over 3-12 months to detect:

• Manager portfolio changes.
• Sector rotations.
• Strategy shifts.
• Style drift.

Concentration risk assessment

Top 10 holdings reveal:

• How concentrated the portfolio is.
• Reliance on individual stocks.
• Sector concentration risk.

Performance attribution

Compare returns to:

• Benchmark.
• Category average.
• Specific peers.

Reading the factsheet effectively

Performance section

• Focus on 3+ year returns; ignore 1-month noise.
• Check alpha consistency, not just average.
• Verify benchmark is TRI (post-2018 mandate).

Portfolio section

• Top 10 holdings often comprise 40-60% of portfolio.
• Higher concentration = higher risk and reward.
• Sector allocations should match the stated mandate.

Risk metrics

• Standard deviation: higher = more volatile.
• Sharpe ratio: higher = better risk-adjusted return.
• Beta: 1 = same as benchmark; less than 1 = less volatile; greater than 1 = more volatile.

Manager commentary

Some factsheets include managers' market view and strategy explanations. Useful for understanding the philosophy and current positioning.

Comparing factsheets

For decisions between funds, side-by-side factsheet comparison reveals:

• Performance consistency.
• Strategy alignment.
• Cost structure.
• Risk profile.

Where to find factsheets

• AMC website (every scheme has dedicated page).
• SEBI's MERIT portal.
• Major mutual fund platforms.
• Industry aggregator sites.

Factsheet update timing

• Most AMCs publish by 10th-15th of each month.
• Reflects the previous month-end portfolio.
• Performance data typically through previous month-end.

Common factsheet limitations

Backward-looking

Shows past month's portfolio; doesn't predict future.

Snapshot, not history

Single month doesn't show portfolio turnover or change patterns.

Bias toward simplification

Complex strategies summarized; nuance lost.

Marketing component

AMCs sometimes select metrics that flatter the fund.

Reading multiple factsheets

For deeper assessment:

• Read 3-6 monthly factsheets in sequence.
• Track portfolio changes over time.
• Observe alpha persistence.
• Notice any sector rotations.

Annual review use

Once a year:

1. Read the current month's factsheet.
2. Compare to the same time last year.
3. Identify any material changes.
4. Confirm fund remains aligned with your needs.

Factsheet vs SID vs KIM

For passive funds

For index funds and ETFs, factsheets are simpler:

• Tracking error vs index.
• Holdings (should mirror index).
• Tracking difference.
• AUM and expense.

Holding period analysis

Some factsheets show:

• Average portfolio turnover.
• Top buy/sell over the period.
• Number of new positions.

High turnover indicates active management; low turnover suggests buy-and-hold.

The investor's monthly habit

For active monitoring, briefly review factsheets of held funds monthly:

• 5 minutes per fund.
• Notice major changes.
• Verify strategy adherence.
• Track risk metrics.

For most investors, quarterly review suffices; monthly is for active managers.

The communication channel

Factsheets are how AMCs communicate transparency to investors. Reading them regularly:

• Maintains investor awareness.
• Catches manager / strategy issues early.
• Enables informed annual review.
• Supports portfolio decisions.

The practical value

Of all mutual fund disclosures, factsheets offer the highest information density per page. They're updated frequently, cover everything an investor needs to evaluate ongoing fund performance, and require modest reading time. They're the most-used disclosure document for ongoing portfolio management.