So, far in the course, we have studied different types of mutual funds. In the part one we studied that we can classify mutual funds as equity funds or debt funds. Now, we understood that equity funds are more risky and thus likely to provide a better return debt funds are less risky and they are likely to provide less returns. Now, in the Part Two we studied various indicators, which can help you understand what how the performance of a mutual fund would be, we studied factors like beta r squared, etc. We also studied ratios like Sharpe ratio, sortino, ratio, tenor issue, etc. All these indicators can give an indication our mutual fund performance could be in the future.

Now, like we started the discussion, we understand that equity funds are the most risky of all the type of mutual funds in the Part three we have just studied that in the previous section. equity funds can be of the other types also like that value funds, growth funds, etc. Now, the equity Funds record to be studied more in depth beyond the indicators that we have. This is simply because of the risk that they carry. So we need to be double sure about how the equity fund would perform. One way to get dig deeper into equity funds is to evaluate the instruments where the equity funds are invested.

So he could evaluate the stocks where the equity funds are invested in then we could come out with a score, which would indicate whether the equity fund will be good or not. This is also very useful when you're debating between number of equity funds, which one to purchase and which one to sell. It is best to evaluate the equity funds leap up and then find out which ones would be the best the best purchase or missed which one should be sold immediately. Now, equity funds basically invest in two type of stocks. They can be either value stocks or growth stocks. They can be stocks which are neither value stocks or growth stock, but however we can classify them also in as either value stocks On a growth stock.

Now, the value stocks can be further studied through a mechanism which was devised by Petroski, which is known as the Petrovsky f score. We will study the Petroski f score in this particular section and find out how we can rank the value stocks so that we can decide whether a mutual fund needs to be purchased or not. based on the value stocks that it is holding. Petrovsky f score gives us a mechanism to give a ranking to a value stock based on nine parameters device by Petroski. Now, using these nine parameters, we can give us code to each parameter of the stock based on which we can determine how good the stock is in terms of future potential. Now, when we already know the mechanism we have devised in the previous section as to how to determine whether a stock is a value stock or a growth stock.

So we first need to identify whether it's stock is a value stock. And then on top of that, for the value stocks, we need to apply Petroski mechanism to determine what its core would be. Once we have this course of all the value stocks, we can find a mechanism to give the mutual fund which holds us value stocks in its portfolio, or ranking based on purely the Petroski score. We will see all of these in this section how to apply Petrovsky f score for value stocks. Later we will see that for growth stocks we can apply something known as Mohandas g score similar to Petroski f score, we will supply a bond as G score, and we will round up with our section on discussion on how we can apply mondas g score and Petrovsky f score together to find the ranking for the mutual fund portfolio.

Thank you for listening. See you in the next lecture.