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METHODOLOGY

How Punji computes its numbers

Every analysis on Punji traces back to a specific, checkable formula and a specific data cutoff - not a black box. This page collects the technical notes from across the site in one place. For where the underlying data itself comes from, see Data Sources.

Fund overlap

Weighted holdings overlap = Σ min(weight_A, weight_B) across common stock holdings, using the latest disclosed month-end portfolio from AMFI scheme disclosures. Cash, derivatives, and non-equity instruments are excluded. Category-level figures are medians across pairwise comparisons of large, well-known funds within each SEBI category. Point-in-time snapshot - portfolios change monthly.

→ Full overlap guide · Monthly Fund Overlap Monitor

Alpha

Alpha = fund 3Y CAGR − benchmark 3Y CAGR. Benchmark resolved in order: (1) AMFI-registered benchmark for the scheme, (2) Punji's curated benchmark mapping, (3) SEBI category default. Sample limited to Direct-Growth schemes with ≥36 months of NAV history. Regular plans, IDCW, and legacy/wound-up schemes excluded. Sectoral benchmark mismatch flagging uses a high-correlation threshold over the same 36-month window.

→ We measured alpha for 1,066 equity funds

Quality vs. alpha (stocks)

Source: NSE regulatory filings and exchange price data. Quality scores computed at each fiscal year-end; forward returns measured to the same date twelve months later. Alpha defined as individual stock return minus Nifty 500 return over the identical period. Banks and insurance companies are assessed against a modified criteria set. Returns are price-only - dividends excluded.

→ The Quality Trap: a 13-year alpha audit

Fund health score

Input metrics: rolling returns, Sortino ratio, Sharpe ratio, alpha, beta, max drawdown, down capture ratio, tracking error - all sourced from Punji's risk & returns analytics engine. Category percentiles are recomputed monthly. Manager tenure is sourced from AMFI scheme metadata; TER from AMFI's latest available monthly disclosure. Profile weights are version-controlled - any weight change triggers a version bump so historical scores remain auditable.

→ Why peer-relative beats absolute thresholds

Flow Watch: AUM change vs. net flow

The AMC × category heatmap in each monthly Flow Watch drop measures AUM change - flow plus market appreciation combined - not net flow in isolation. It is not directly comparable to the separately-reported net-flow totals (equity net inflow, debt net flow) shown alongside it in the same drop. Conflating the two is a common analysis error we deliberately avoid.

→ Flow Watch, every month

GO DEEPER

Data: AMFI, NSE, and BSE public disclosures. Analysis: Punji Research. Educational content, not investment advice.