8.46How to evaluate fund consistency
1What is it?
Check how often the fund beat its benchmark and category average across rolling periods.
2Why does it exist?
Consistency suggests a repeatable process rather than luck.
3Practical use
A fund that beat its benchmark in, say, 70%+ of rolling 3-year periods is more reliable than one with a single spectacular year.
4Quick revision
- Rolling-period win rate vs benchmark.
- Consistency > peaks.
5Knowledge check
Q1. What does a high rolling win-rate suggest?Show answer
A repeatable process.
Q2. Consistency or one great year?Show answer
Consistency.
Q3. Benchmark for consistency?Show answer
The fund’s benchmark TRI and category average.