How To Read Factsheet

Name: How To Read Factsheet reference dataset
Creator: Know Your PMS

Published 2026-01-21. Last updated 2026-04-17. Editorial review: Know Your PMS editorial standards. By Abhimanyu Kucheria for Know Your PMS.

Topic cluster: Evaluation & Due Diligence

Start here if you are building a shortlist or reading factsheets for the first time. These guides cover comparison frameworks, disclosure literacy, and the traps that make good marketing look like good performance.

Pillar guide: How To Compare Schemes

More in this cluster:

What it means (plain English)

A PMS factsheet is the monthly truth serum: performance, holdings, ratios, and disclaimers. Typical sections: performance table (1/3/5 year vs benchmark), portfolio characteristics (market cap, sector weights), top holdings, AUM, sometimes risk metrics (Sharpe, beta, drawdown).

Read footnotes first pass: gross vs net, composite definition, benchmark name (TRI or not), model vs client performance. SEBI registration number should appear. Check as-of date—stale factsheets signal ops issues.

Holdings show concentration—top 5 at 40% tells a different story than 25%. Sector weights reveal style drift vs mandate. Cash % explains recent defensiveness.

Factsheets are marketing plus disclosure. Cross-check numbers on Know Your PMS and ask the manager to explain discrepancies. One factsheet is a snapshot; request 12–24 months for trends.

Worked example (Indian PMS scenario)

Page 1: CAGR 19%, benchmark 13%—note 'gross of fixed fees' in 6pt footnote. Page 3: top 10 holdings 54%, sector chart shows 38% financials. Page 5: beta 1.2, tracking error 8%, Sharpe 0.9. Page 7: fee schedule 1.5% + 15% perf above 10% hurdle, HWM yes.

Rebuild net returns: subtract 1.5% from CAGR → 17.5% approximate. Check if performance fee years are flagged—FY24 may be net 14% after a bumper fee invoice. Cross-holdings: three stocks appear in your direct portfolio too—unintended 8% overlap on ₹1.2 crore combined.

Factsheets are marketing documents with regulated minimums. Read footnotes before headlines, then verify composite vs model portfolio in the compliance section at the back.

Why it matters for PMS scheme selection

Factsheet literacy turns monthly PDFs into actionable due diligence instead of decorative inbox clutter.

See the complete PMS evaluation framework

Surfaces fee basis and composite definitions
Shows live portfolio vs marketing narrative
Enables month-over-month style drift detection
Provides holdings for overlap analysis
Flags disclosure gaps vs SEBI norms

How to interpret it (practical checklist)

Verify SEBI reg no. and factsheet date
Note gross vs net performance tables
Record benchmark and TRI usage
Scan top 10 holdings and sector weights
Read cash, derivatives, and leverage footnotes
Compare risk metrics month to month
Archive factsheets for trend analysis
Reconcile with Know Your PMS data

Common pitfalls (how this gets misused)

Read our methodology for assumptions and limitations.

Reading only headline 1-year return
Ignoring model portfolio labeling
Missing benchmark change footnotes
Assuming holdings are point-in-time without lag
Overlooking stale factsheet dates
Trusting one month without context

Related metrics to review together

Use this guide alongside these metrics to avoid one-number decision-making:

Browse all metrics

Related guides

FAQs

How often should Indian PMS send factsheets?

Monthly is standard practice for established managers. Quarterly minimum may suffice for some institutional relationships but is thin for active monitoring. Persistent delays are a yellow flag.

Why do factsheet returns differ from my account?

Timing of your investment, custom restrictions, tax sells, and composite vs individual account reporting create gaps. Large gaps warrant a written explanation from operations.

Are factsheet holdings delayed?

Often 15–30 days lag is disclosed. High-frequency traders may show older snapshots. Know the lag when inferring current exposure.

Next: How to compare PMS schemes · Compare schemes · All guides

Frequently asked questions

How often should Indian PMS send factsheets?: Monthly is standard practice for established managers. Quarterly minimum may suffice for some institutional relationships but is thin for active monitoring. Persistent delays are a yellow flag.
Why do factsheet returns differ from my account?: Timing of your investment, custom restrictions, tax sells, and composite vs individual account reporting create gaps. Large gaps warrant a written explanation from operations.
Are factsheet holdings delayed?: Often 15–30 days lag is disclosed. High-frequency traders may show older snapshots. Know the lag when inferring current exposure.