- First, we calculated the Sharpe ratio for all the funds in the large-cap category for the three-year period
- Sharpe ratio is a measure of the risk-adjusted return of a fund, that is, how much return a fund gave for each unit of risk it took
- Next, we took the top 10 funds in reducing order of Sharpe ratio, and calculated their rolling returns
- Three-year returns were calculated, at one-month intervals, rolled over five years
- The table shows the percentage of times a fund beat its benchmark (pick fund from this table)
- It is better to choose funds that cost less and also churn their portfolios less
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