Humans by their very design, like choices and product manufacturers appeal to this very nature of humans – by giving them ample choices.

Now, we are faced with the next big problem – how do we sift through all these choices and make a decision? This question becomes all the more relevant when we are evaluating Portfolio Management Services (PMS) Strategies. At any point in time, we have a finite set of capital, and we are faced with the choice of allocating it among a certain number of Strategies (varying between 1 to many).

The built-in Advanced Search functionality on IQ, helps the user filter PMS Strategies based on various criteria.

Since our product launch, we have observed that the two filtering criteria used most by advisors are

  1. Investment Period – This allows you to see the fund manager’s track record. This is helpful because as an investor, you would ideally want your fund manager to have a long track record.
  2. Returns (%) since Inception: Every fund manager whether they like it or not, are judged by their performance. Access to information spanning a long period assists the user to narrow down the Fund Manager’s performance and then go deeper into the contributors of this performance.

We noticed a few other criteria investors often tend to use to filter the Strategies through the Advanced Search functionality, such as Fees Paid, type of Market Capitalisation Exposure, Assets under Management (AUM), Fund Manager information, etc. However, the two most used filters which accounted for 80% of the Advanced Search functionality were driven by ‘Investment Period’ and ‘Returns’.

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