Mutual Fund Performance Attribution Analysis

Problem

When a mutual fund outperforms its peers, the useful question is not only whether the returns are strong, but where they come from: active management, sector exposure, style, or market Beta. Fund Performance Attribution Analysis turns that question into an evidence chain covering excess returns, stock selection, timing, portfolio allocation, and manager tenure.

How It Works

• Entity and scope: use entity-recognition to resolve the fund code, then use fund/basic-info to distinguish active, passive, equity-biased, or bond-biased products, avoiding active-management framing for index-like funds.
• Return attribution: call fund/eval-peer-avg-ind and fund/performance-attribution to compare peer averages, Alpha, Beta, stock-selection and timing metrics, and judge whether outperformance is stable.
• Supporting checks: combine fund/portfolio-asset-holdings and fund/current-manager-returns to verify whether current allocation, style exposure, and manager tenure are consistent with the reported performance.

Scope and Caveats

The analysis relies on Investoday financial data and is best suited to products within similar strategy sets. For passive, index-tracking, or ambiguous funds, the boundary should be stated and a full fund name or 6-digit code may be required. Percentages keep two decimal places, and the output does not provide purchase, DCA, position, or trade-timing advice.