While the Screener comes with a host of in-built filters that you can use to shortlist funds, it also gives you the ability to create your own filters. The Custom Filter feature is available to all users.
A custom filter is a mutual fund filter that has been created by a user. Such a filter can be created by using one to five data items on Screener. Custom filters are useful because they allow you to dig deeper into the mutual fund universe and search for funds that match your specific criteria.
While the default filters are more than useful for most users to filter funds, savvier users can create custom filters to be able to carry out deeper research.
Let’s understand this with the example of VaR, which is a custom filter that you can create on Screener.
VaR or value at risk is a statistic used to measure the extent of possible losses within a portfolio over a period of time. At a 99% confidence interval, a 1 year VaR of 7.5% implies that the loss will be limited to 7.5%, 99% of the time over the horizon of 1 year. Losses that exceed 7.5% will only occur 1% of the time.
VaR (99% confidence level, 1 year) = Portfolio value * Zvalue * Standard deviation (1y)
Where Zvalue at 99% confidence interval is 2.326
Let’s assume we want to invest 2,00,000 in Fund A with an annual standard deviation of 15% and we want to know the max loss we will incur 99% of the time over a horizon of 1 year.
VaR,99%,1Y = 2,00,000 * 2.326 * 15%
This implies that losses will not exceed 69,780, 99% of the times in the 1 year horizon.
VaR is one custom filter that can be created on the Tickertape Screener by using just one data item : Standard deviation. There are many other data items that can be used to create other custom filters.
Creating a custom filter
To create a custom filter, you have to click on the ‘Add Filter’ button and then go to the ‘Custom’ option on the top.
You can then type in the data items you need in your filter and create it. You can give the filter a name of your choice and verify it as well.
All of your custom filters appear under the ‘Your Filters’ tab.
This is how you can create and use custom filters on the Tickertape screener to build a portfolio of mutual funds that fits your needs and ideas.