A factsheet is the monthly (or periodic) snapshot of a scheme. Treated well, it is a diagnostic. Treated poorly, it becomes a highlight reel of trailing returns. Your job is to read for process and risk, not for bragging rights.
Scan order that saves time
- Investment objective and category—confirm it still matches your use case.
- Asset allocation and top holdings—watch concentration and style drift.
- Expense ratio and AUM—context for capacity and cost.
- Risk measures (standard deviation, beta, Sharpe)—compare to peers and benchmark.
- Rolling returns if available—more honest than a single 1-year number.
Signals vs noise on a factsheet
| Item | Useful signal | Common misuse |
|---|---|---|
| 1-year return | Short-term context only | Primary selection criteria |
| Top 10 holdings | Concentration & style | Ignoring sector overlap across funds |
| Expense ratio | Cost drag | Assuming cheapest always wins |
| Portfolio turnover | Trading intensity | Ignoring tax/impact in active books |
Conclusion
Factsheets reward a consistent reading ritual. Start with mandate and holdings, then costs and risk, and only then returns. That order alone will filter more weak decisions than any tip sheet.