How to meet a superstar?

Mutual funds are a very interesting alternative in today’s days of low income from banking products, which is available to ordinary citizens. Is there a simple help when choosing a fund, according to which it is possible to orientate in the offer of more than 900 sub-funds offered in the Czech Republic?

Scoring is a simple indicator in the graphic form of stars, which summarizes the basic information about the fund a certain performance and risk. With the help of scoring, they can easily find out which fund provides the highest ratio entry/risk.

The method of scoring Scoring is based on two basic indicators:

  • performance of the fund, including dividends and fees
  • risk of collapse of the fund’s performance

The reasons for scoring does not take into account the indicators of the quality of the fund (size of NAV, longevity of the fund, availability, etc.) are as follows: subjectivity at the level of these indicators, subjectivity when comparing these indicators and difficult availability of these indicators for many funds. Our goal is constructed if you have the most objective rating for as many funds as possible.

RThe fund’s elative performance includes dividends and fees

How to choose the right fund for vs? tte HERE.

This is the annualized certain performance for the sub-duty, ie the performance is increased by the maximum entry and entry fees and the payment of dividends. For each fund, the following relative performance is calculated once a week for the last: twelve months in the case of money market funds, 24 months in the case of bond funds, 36 months in the case of a pool fund, fund fund and 60 months in the case of equity funds. Subsequently, the funds sit according to this indicator from the highest value to the lowest values.

The fund’s performance is categorized according to the following rule:

  • pt stars (high performance): upper 10%
  • tyi hvzdiky (nadprmrn vkonnost): (10%-32.5%)
  • ti hvzdiky (prmrn vkonnost): (32.5% -67.5%)
  • two stars (below performance): (67.5% -90%)
  • jedna hvzdika (nzk vkonnost): dolnch 10%

Relastic risk fund

We consider the fund’s risk to be the risk of fluctuation (volatility) of the fund’s performance). Volatility of the fund’s performance is required from the fund’s inception. The funds are sorted according to this indicator from the lowest value to the highest value.

The fund’s risk is categorized according to the following rule:

  • pt hvzdiek (nzk riziko): hornch 10%
  • tyi asterisks (below-average risk): (10% -32.5%)
  • stars (average risk): (32.5% -67.5%)
  • two stars (above-average risk): (67.5% -90%)
  • one star (high risk): lower 10%

Scoring

The fund’s scoring is consumed in such a way that the fund’s performance in terms of performance is driven by the fund’s performance in terms of the risk achieved. So performance and risk have the same mind. For each fund, we obtain the interval (2.2N), where N is the total number of funds in the category. Opt seadme funds according to this indicator from the lowest value to the highest.

Fund scoring is categorized according to the following rules:

  • pt stars (high scoring): upper 10%
  • tyi hvzdiky (nadprmrn scoring): (10%-32,5%)
  • ti hvzdiky (prmrn scoring): (32.5% -67.5%)
  • dv hvzdiky (podprmrn scoring): (67,5%-90%)
  • jedna hvzdika (nzk scoring): dolnch 10%

Scoring fond je potn v kad kategorii zvl ᚝ (shares, smen, bonds, pennho market, fondy fond). Excluded from the ratings are those funds that a) have a history of once a year b) have a history of times not at least the investment horizon of their category. The scoring value is valid once msn. Once a quarter, the scoring change will be an comment room with an emphasis on esk funds.

To illustrate the method of scoring, the fund will give a schematic example of scoring five funds that do not pay a dividend:

a) relativn vkonnost:

Power for last year

Souet max. vst. a vst. fee

Risk-free input

Oitn nadprmrn entry *

Poad

Poet hvzd.

Fond A

12%

6%

5%

12-6-5=1%

4(5)

2

Fond B

65%

10%

5%

65-10-5=50%

1(5)

5

Bottom C

-5%

2%

5%

-5-2-5=-12%

5(5)

1

Bottom D

22%

0%

5%

22-0-5=17%

3(5)

3

Fund E

35%

3%

5%

35-3-5=27%

2(5)

4

* only approximation of the net input, the exact value is determined by the formula

Fund B achieves high performance, Fund E above average performance, Fund D below average performance, Fund A below average performance and Fund C low performance.

b) relative risk:

Fund performance volatility

Poad

Poet hvzd.

Fond A

3,5

3(5)

3

Fond B

4,3

4(5)

2

Bottom C

2,5

1(5)

5

Bottom D

6,1

5(5)

1

Fund E

2,8

2(5)

4

Fund C carries low risk, fund E supports risk, fund A takes risk, fund B takes over risk and fund D takes high risk.

c) scoring:

Poad vkonnost

Poad risk

Poad vkonnost
+ poad risk

Poad scoring

Poet hvzd.

Fond A

4(5)

3(5)

4+3=7

4(5)

2

Fond B

1(5)

4(5)

1+4=5

2(5)

4

Bottom C

5(5)

1(5)

5+1=6

3(5)

3

Bottom D

3(5)

5(5)

3+5=8

5(5)

1

Fund E

2(5)

2(5)

2+2=4

1(5)

5

Best scoring (five stars) m fund E, followed by fund B (three stars), fund C m three stars, fund A two stars and the best place is fund D with one star.

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How is V nzor on the scoring fund? Do you have a good or bad experience with it? Drink your opinion or experience.