INTIME Securities Private Limited

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How We Choose Schemes

We (Mutual Fund Distributors (MFDs)) select schemes by matching a fund's characteristics to a client's specific financial goals, time horizon, and risk tolerance. We primarily rely on evaluating standardised "4 Ps": Profile, Portfolio, Performance, and Process.

1. Assessing the Investor's Profile

Before evaluating any mutual fund, we first build a comprehensive financial blueprint for the client.

Goal Mapping: We determine what the client is investing for (e.g., retirement, buying a home, or wealth accumulation). :contentReferen
Time Horizon: We identify how long the client can stay invested. For short-term goals, we might suggest debt funds. For goals 5+ years away, equity funds are generally recommended. :contentReferen
Risk Tolerance & Capacity: We evaluate the client's risk appetite—both psychologically and financially (e.g., age, income, and liquidity needs). :contentReferen

2. Evaluating Fund House (AMC) Philosophy

We align with Asset Management Companies (AMCs) that demonstrate a clear, proven, and robust investment philosophy. We investigate: :contentReferen

Investment Style: Checking if the fund focuses on growth investing, value investing, or a blend of both. :contentReferen
Fund Manager Consistency: Tracking the fund manager's tenure and their success rate across different market cycles. :contentReferen

3. Quantitative and Qualitative Screening

We analyze various metrics to shortlist the best schemes within a category: :contentReferen

Risk-Adjusted Returns: Analyzing metrics like the Sharpe Ratio and Standard Deviation to ensure the fund is not taking excessive risks to generate returns. :contentReferen
AUM and Liquidity: Ensuring the fund has a stable Asset Under Management (AUM) and a portfolio of highly liquid assets.

4. Portfolio Diversification & Asset Allocation

A key principle for any distributor is reducing risk through diversification.

Asset Allocation: We allocate the client's money across asset classes (equity, debt, and hybrid) based on the client's risk profile.
Scheme Selection: Within equities, we may diversify across large-cap, mid-cap, and small-cap schemes to protect the client from sector-specific downturns.

5. Ongoing Monitoring and Review

The selection of a scheme is not a one-time event; it's an ongoing process.

Portfolio Rebalancing: We continuously monitor the client's portfolio and market conditions to suggest adjustments or rebalancing as goals and market cycles change.