What are the best mutual funds
Fund checkThese are the best active funds
The big fund ranking of Greiff Capital Management and Capital stands out: It's not just about finding the funds with the highest return in a certain period of time - because often enough the winners of a year quickly turn out to be rivets. The study by Greiff and Capital rather examines the long-term return: “Our ranking filters out the funds that have consistently outperformed their benchmark index. We are looking for the funds with the reliably best performance, ”says Greiff board member Volker Schilling. In essence, the methodology has remained unchanged since the first year of the study in 2011.
For this year's capital ranking, Greiff Capital Management analyzed 8245 products. They are divided into seven main categories: mixed funds, bonds, stocks by country and region, stocks by sector and industry, money market, commodities and alternative funds, including absolute return and long / short products. The study contains a total of 126 sub-categories. This includes standard areas like German stocks and more exotic ones like Indian stocks. This year, the number of funds examined is fewer than last year, when almost 9,000 were analyzed. The reason: While funds of funds have so far flowed into the population and were only sorted out in the course of the analysis, they could now be screened out beforehand due to a change in the data provider Thomson Reuters Lipper. Funds of funds invest in other funds, are very different and often do not have any comparative indices - that is why they do not appear in this ranking.
Factor 1: age
The performance of all funds was tested and evaluated over three, five and ten years. However, only offers with a history of at least ten years have a chance of a place on the winners list.
Factor 2: activity
In the next step, offers were screened out whose price developments are clearly similar to that of the benchmark index. Because an active fund should live up to its name and actually deviate significantly from the index to justify its higher fees - a cheaper ETF does everything else. The average deviation of an actively managed product from its benchmark index is measured using the tracking error. The more courage the manager has to express his own opinion and the more he deviates from the index, the more active he is and the higher the tracking error value. However, only those funds that have a higher tracking error than the median in all three periods have a chance of winning positions.
Factor 3: Success
In order to be able to assess the quality of an investment fund, its performance is compared with the respective index. The key figure for this is the so-called information ratio. It shows how much excess return the managers achieved in relation to the deviation from the index. If the fund outperforms the benchmark, the information ratio is positive. The higher it is, the more successful the fund is for investors. The winning funds only include products that have a positive information ratio in all three periods.
176 funds passed the acid test this year and are therefore active and successful at the same time.
Read the complete fund test in the new Capital, which was published on May 23rd. Are you interested in capital? Click here to go to the subscription shop, where you can order the print edition. Our digital edition is available from iTunes and GooglePlay
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