# Fund Analysis

Analyze mutual funds and ETFs by evaluating their individual stock holdings rather than past performance. Build fund characteristics like Quality Rating and ...

Canonical: https://www.manifestinvesting.com/guide/going-deeper/fund-analysis

# Fund Analysis

Analyze mutual funds and ETFs through their individual holdings to predict future performance rather than relying on historical data.

## Key Points

- \*\*Analyze holdings, not history\*\*: Look at actual stocks owned, not past performance
- \*\*Calculate weighted metrics\*\*: Quality Rating and PAR from holdings data
- \*\*Forward-looking approach\*\*: Focus on where the fund is going
- \*\*Works for all fund types\*\*: Mutual funds, ETFs, and closed-end funds

![Fund Analysis](/images/guide/advanced/fund-analysis.png)

## The Basics

Traditional fund analysis relies heavily on past performance, but Manifest takes a different approach. We analyze funds by examining their actual stock holdings and calculating projected metrics based on those individual companies.

This forward-looking method builds fund characteristics from the bottom up. Instead of asking "How has this fund performed?" we ask "What do we expect from the companies this fund owns?" The result is a clearer picture of a fund's future potential.

### What We Calculate

Using weighted averages of holdings data, we generate:

- \*\*Projected Annual Return (PAR)\*\* - Expected 5-year return
- \*\*Quality Rating\*\* - Overall excellence score (0-100)
- \*\*Forecasted Sales Growth\*\* - Revenue growth projections
- \*\*Projected Yield\*\* - Expected dividend income
- \*\*Projected P/E Ratio\*\* - Valuation metrics
- \*\*Financial Strength\*\* - Balance sheet health
- \*\*EPS Predictability\*\* - Earnings consistency

## On the Platform

Fund analysis works with any pooled investment:

- \*\*Open-end mutual funds\*\* - Traditional actively managed funds
- \*\*Exchange-traded funds (ETFs)\*\* - Passive and active ETFs
- \*\*Closed-end funds\*\* - Fixed share count funds
- \*\*Custom portfolios\*\* - Any group of stocks in a dashboard

### Additional Insights

Beyond basic metrics, fund analysis reveals:

- \*\*Stock ideas\*\* from successful fund manager buys and sells
- \*\*Expense ratio warnings\*\* for high-cost funds
- \*\*Turnover alerts\*\* for funds inconsistent with long-term investing

### Key Principle

Concentrate on collective projections for actual holdings. A fund's future depends on its companies' futures, not its past performance.

## Learn More

- [Quality Rating](/guide/core-concepts/quality-rating) - Understanding the 0-100 excellence score
- [PAR Analysis](/guide/core-concepts/par) - Projected Annual Return calculations
- [Portfolio Management](/guide/making-decisions/portfolio-design) - Apply fund insights to your holdings
- [Selling Stocks: The Challenge of Reason](/articles/selling-stocks-challenge-reason) - When to exit positions