Current Disclosures

When it comes to individual stocks, there are many metrics available for fundamental and technical analysis. 

But in case of mutual funds, ETFs in India, there are only handful. And most of them like alpha, beta, Sharpe ratio, standard deviation rely on past performance, which is unreliable and not guarantee of future performance.
 
Currently SEBI mandates the funds to disclose following metrics: NAV; risk-o-meter with six ratings; individual holdings; benchmarks, total expense ratio, tracking error.

However fundamental metrics such as Price-to-Earnings ratio (P/E), Debt-to-Equity ratio (D/E), Return on Equity (ROE), Return on Capital Employed (ROCE), median market cap are not disclosed.

This disclosure will benefit investors by giving them concrete metrics to evaluate a fund that does not rely solely on past performance. It will also encourage healthy competition between different funds.

Parag Parikh Flexi Cap Fund(PPFCF) is a popular mutual fund which employs principles of value investing and fundamental analysis. It's monthly portfolio disclosure discloses it's benchmark with NIFTY 50, NIFTY 500, turnover and other metrics. However fundamental metrics are not disclosed.


Norms in US Markets

Many American funds already disclose those metrics as well. VOO, an index fund which tracks S&P 500,  discloses following fundamental metrics: Median market cap; Earnings growth rate; Short-term reserves; P/E ratio; P/B ratio; Return on equity in it's portfolio composition section.

Solution by Me

This is not slackactivism. I have created a free and open source Python program which works by breaking down funds individual equity holdings, collecting their metrics and then returning median of  them. 

I have also created an alternative solution that relies on official fund disclosure document. But it includes ISIN, which majority of tools do not support. For that, I have created another open source database for ISIN to ticker mapping.

But none of the solutions are universal, as the data is hard to process, not everyone is tech savvy.

I request SEBI, AMFI and other authorities to mandate monthly disclosures of these metrics. And also to research platforms, brokers to implement this on their platforms.

Thank you