Fund Selection Policy

1. Purpose

This policy describes the framework Makkar Investor Services LLP uses when evaluating and recommending mutual fund schemes to clients. It is published in the interest of transparency so that clients and prospective investors understand the principles behind our recommendations.

2. Client Goals Come First

No scheme is recommended in isolation. Every recommendation begins with mapping the client's financial goal, time horizon, liquidity needs, and risk tolerance. A scheme is only considered after it has been matched to a specific goal and horizon — suitability precedes selection.

3. Evaluation Criteria

We evaluate schemes on rolling returns, risk measures (including standard deviation and downside behaviour across market cycles), and fund manager tenure — not short-term momentum. In practice, this means:

• Rolling returns over point-to-point returns: rolling return analysis examines performance across many overlapping holding periods, reducing the distortion created by a single favourable start and end date.
• Consistency over headline performance: a scheme's behaviour in correcting markets is weighed alongside its upside participation.
• Manager and process stability: tenure and continuity of the fund management team are material factors, because strategy consistency matters over multi-year holding periods.
• Cost awareness: the expense ratio (TER) of any recommended Regular plan is considered as part of suitability, and clients are informed of the commission embedded in their investments at the time of investment.

4. What We Do Not Do

• We do not recommend schemes based on last quarter's or last year's top-performer lists.
• We do not guarantee or promise returns. Market-linked investments carry risk, and past performance may or may not be sustained.
• We do not accept incentives that require us to recommend unsuitable schemes. Recommendations must remain defensible against the client's documented goals.

5. Ongoing Review

Selection is not a one-time event. Client portfolios are reviewed against their stated goals, and scheme recommendations are revisited when there is a genuine, documented reason — such as a change in the client's circumstances, a material change in the scheme's mandate or management, or a drift in asset allocation. Switches are evaluated with attention to exit loads and capital-gains tax implications before any change is suggested.