Objective
This document outlines the structured, documented and repeatable process followed by Mathew Finserv Private Limited (ARN – 164114) for identifying, evaluating and shortlisting mutual fund schemes for client distribution.
Our selection process is based entirely on objective analysis, risk-category mapping and compliance requirements. Scheme selection is never driven by commission incentives.
Fund Selection Process Flow
All SEBI-compliant schemes
3Y/5Y returns, Sharpe, Alpha
Fund manager, AMC track record
Client risk-profile alignment
Quarterly reviewed
Exclusion Criteria
The following are automatically excluded from our recommended list:
- Schemes from AMCs under SEBI regulatory action or warning
- Schemes with high portfolio concentration in a single stock or sector beyond category norms
- Debt schemes with significant exposure to below-investment-grade (below AA-) securities
- Schemes with more than 2 fund-manager changes in the last 3 years
- Close-ended or interval schemes unless specifically required for a client's goal
- Products with opaque strategy or inadequate risk disclosure
Data Sources
AMC factsheets and monthly portfolio disclosures; Value Research and Morningstar India for performance data and fund ratings; AMFI website for NAV and AUM data; SEBI Riskometer classification for risk categorisation; and the SEBI Mutual Fund filings portal for SID/SAI/KIM documents.
Suitability Mapping
| Risk Score | Client Category | Eligible Scheme Types |
|---|---|---|
| 0 – 30 | Conservative | Liquid, Overnight, Short Duration, Arbitrage |
| 31 – 60 | Moderate | Balanced Advantage, Hybrid, Multi-Asset, Short Duration Debt |
| 61 – 100 | Aggressive | Equity (all categories), Sectoral, Thematic, Small Cap |
No scheme whose SEBI Riskometer category exceeds the client's assessed risk level is recommended. If a client insists on an unsuitable scheme, the execution-only process is followed with written unsuitability communication and client consent.
Conflict of Interest Declaration
Mathew Finserv Private Limited (ARN – 164114) is fully independent, with no AMC shareholding, employment, directorship or financial affiliation with any Asset Management Company.
Our fund selection is based solely on objective criteria and is never influenced by commission rates, incentive trips, gifts or any non-monetary benefits from AMCs.
Our internal review process periodically examines recommendation patterns to identify and eliminate any potential commission bias.