Fund Selection Policy
Our structured, documented, and repeatable process for identifying and shortlisting mutual fund schemes — never driven by commission incentives.
Commission-Independent Selection
Finadore Distribution Private Limited (ARN-300809) has 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.
Fund Selection Process
Universe Definition
All SEBI-compliant mutual fund schemes across categories
Quantitative Screening
3Y/5Y returns, Sharpe ratio, Alpha vs. benchmark, Sortino ratio
Qualitative Review
Fund manager track record, AMC stability, investment philosophy
Suitability Mapping
Alignment with client's risk profile, investment horizon, and goals
Recommended List
Quarterly reviewed and updated based on performance & changes
Automatic 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
- Any product with an opaque strategy or inadequate risk disclosure
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 |
Execution-Only Process
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.
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 categorization
- SEBI Mutual Fund filings portal for SID/SAI/KIM documents
Our internal audit process (conducted annually) periodically reviews recommendation patterns to identify and eliminate any potential commission bias. Last updated: February 2025.