How to Read a Mutual Fund Factsheet
The numbers worth checking in a monthly factsheet: expense ratio, holdings, risk ratios, returns against the benchmark and exit load.
Every fund house publishes a monthly factsheet for each scheme. It is two pages of numbers, and most of them are easy to read once you know what to look for.
What to check first
- Category and objective: large-cap, flexi-cap, debt and so on. It tells you what risk to expect.
- Expense ratio: the yearly fee as a percentage of your money. Lower is better, and direct plans cost less. See direct vs regular plans.
- Exit load: a fee if you sell within a set period, often a year.
- Minimum SIP and lump sum: to see if the fund fits your budget.
Portfolio
Look at the top 10 holdings and the share of the portfolio they make up. If a few stocks dominate, the fund is more concentrated and may be more volatile. The sector split shows where the fund is leaning.
Returns
Compare the fund's 1, 3, 5 and 10-year returns with its benchmark and with similar funds. A fund that beats its benchmark only in one year is not proving much. Returns beyond one year are shown as annualised figures; check them with the CAGR calculator.
Risk measures
- Standard deviation: how much returns swing. Higher means a bumpier ride.
- Beta: sensitivity to the market. Above 1 means it moves more than the market.
- Sharpe ratio: return earned per unit of risk. Higher is better when comparing similar funds.
Other items
Portfolio turnover shows how often the fund trades, which can add costs. The fund manager's name and tenure show who is running the money. Start a SIP once you are comfortable by following the how to start a SIP guide.
Educational content. Use the latest factsheet from the fund house website.
Frequently asked questions
Where can I find a factsheet?
On the fund house's website, usually under a Downloads or Factsheets section.
Should I choose the fund with the highest past return?
Not on that alone. Check consistency over several periods, costs and risk as well.
More guides
Calculators
Last reviewed: October 2026. General education, not financial advice.