Assessing the overall performance of Fund Houses (AMCs) with respect to equity mutual funds is to check for its outperforming schemes in each category. Here, outperformance in a category is defined as showing better long term stability and short term momentum. Only the schemes that have been consistently outperforming its peers over a period of two weeks are considered. For better comparison, only Direct - Growth schemes are included. The more outperforming schemes a fund house (AMC) has the better is its performance.

It has been observed that schemes of a fund house tend to perform in similar fashion in the medium term. Thus, if a fund house has more schemes that are outperforming, there is a greater probability that its other schemes will perform better. This is not a rule, but more like an indication. For an investor, this works as an indicator that helps to decide whether to invest in the schemes of a specific fund house. Also, historic performance data can help decide on what to do with long term mutual fund holdings.

While outperforming schemes provide a general direction for that fund house, the top performing scheme establishes beyond doubt that the current portfolio has the best possible mix for that category. The number of top performing schemes is a more powerful indicator of the performance of the fund house.