Glossary· Ratings & classification

What is Peer group?

The funds a rating or rank is measured against — same sub-category, plan and option.

Ranking a Direct Growth small-cap fund against Regular IDCW large-cap funds would measure plan and category, not skill. The peer count is shown with the rating, because a percentile out of 12 funds is a weaker claim than one out of 200.

For the formula and the constants behind this figure, see Methodology.

Guides that use Peer group

15 guides put this term to work.

The twelve mistakes that cost first-time SIP investors the mostAlmost none of the money new investors lose goes to bad funds. It goes to plan, cost, horizon and behaviour — and every one of these is avoidable by someone who was warned.
Equity funds demystified: large cap, mid cap, small cap and the SEBI rulebookSince 2017 every open-ended scheme sits in one defined box with a binding rule about what it must hold. What the boxes mean, and why comparing across them tells you almost nothing.
Flexi cap vs multi cap: which strategy offers better flexibility?One is obliged to hold small caps; the other is free not to. The 2020 rule change that created the split, and why it affects how you read an older track record.
Debt funds explained: duration risk and credit risk are not the same thingSixteen SEBI categories along two independent axes. Why a gilt fund can have a worse year than an equity fund, and what the 2023 tax change actually removed.
Core and satellite: how to build a portfolio you can actually maintainEvery holding is either reliable or interesting, most of the money is in the reliable part, and the interesting part has a size limit set in advance.
Fund manager changes: should you panic when the captain leaves?Were you buying a person or a process? What to check immediately, what to watch for six to twelve months, and the one situation where moving quickly is free.
Mutual fund overlap: are you really diversified?Diversification stops early and overlap starts immediately. Why the answer is four to six, how to measure the duplication you already own, and how to unwind it without a tax bill.
Treynor and information ratio: advanced tools for comparing fundsOne prices market risk, the other prices the decision to differ from the index. For choosing between active funds in one category, the information ratio is the most relevant number on the page.
The psychology of a market crash: behavioural finance that survives contactLoss aversion, herding and action bias are not character flaws — they are the default settings. The pre-commitments that work, because judgement in the moment does not.
Value vs growth: which style actually wins over the long run?Two different bets with two different failure modes — the value trap and multiple compression — and leadership cycles long enough to exhaust anyone's patience.
Focused funds: is holding only 30 stocks conviction or recklessness?The stock cap is a multiplier on the manager's process, not a strategy — it widens the distribution of outcomes without raising the expected return.
Contra funds: betting against the crowd, and what being early costsOverreaction is a real and repeatable market failure. The price of exploiting it is years of looking wrong in public, which is why so few investors collect.
Dynamic bond funds: letting a manager call the interest-rate cycleYou are not buying a duration, you are buying a forecast — of the one variable the bond market has already priced. Why choosing the duration yourself usually wins.
Your annual portfolio audit: a step-by-step health checkNinety minutes, once a year, in six parts — where the default action at every step is to do nothing, because the audit exists to catch drift rather than generate trades.
AI and algorithms in fund management: hype and realityInside Indian AMCs it does operations and compliance, not stock picking. Why predictive advantage is structurally hard, and what SEBI now requires.

What is Peer group?

Guides that use Peer group

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