How to Use Fund Comparison Tools

Learn how to use online mutual fund comparison tools to analyze returns, risk, expense ratios, and consistency — so you invest smartly, not blindly.

27/06/2025

Introduction

With hundreds of mutual funds available, it’s easy to get overwhelmed. That’s where fund comparison tools come in — to help you filter the noise and make data-backed decisions.

This blog shows you how to use these tools like a pro — with a side-by-side example you can relate to.

Key Metrics in Fund Comparison Tools

Returns (1Y, 3Y, 5Y, Since Inception)
Standard Deviation (Risk Level)
Sharpe Ratio (Risk-Adjusted Return)
Expense Ratio (Cost to Manage Fund)
Alpha & Beta (Performance vs Market)

How to Use the Tools – 3 Simple Steps

✅ Step 1: Shortlist Funds Use platforms like:

Value Research Online
Morningstar India
Moneycontrol
Groww or Zerodha Coin

✅ Step 2: Compare 3–4 Funds Side by Side Look at:

Returns consistency across time frames
Expense ratio vs category average
Risk metrics (Sharpe Ratio >1 is good)

✅ Step 3: Pick Based on Fit Choose a fund that matches your goal, timeline, and comfort with volatility.

Real-Life Example: Neha’s Dilemma Neha wants to start a SIP in a Flexi Cap Fund.

She uses Value Research to compare:

Fund Name	5Y CAGR	Sharpe Ratio	Expense Ratio
Fund A	12.4%	0.88	1.3%
Fund B	11.7%	1.12	0.9%

She chooses Fund B, which offers better risk-adjusted returns and lower expenses.

Conclusion

Using fund comparison tools isn’t rocket science. With a little time and the right lens, you can find better-performing, lower-cost, and more stable funds.

Before you invest, compare. It’s free, easy, and could boost your returns by 1–2% annually.

Quick Table: Key Metrics Cheat Sheet

Metric	What It Tells You	Good Benchmark
5Y CAGR	Long-term return	>10% in equity funds
Sharpe Ratio	Return per unit of risk	>1 is considered good
Expense Ratio	Annual cost of the fund	<1.5% in active funds
Standard Deviation	How volatile the fund is	Lower = more stable

Dr. Satish Vadapalli
Research Analyst

How to Use Fund Comparison Tools

Introduction

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