# Percentile Rank

Where a fund sits within its peer set, metric by metric.

Source data: AMFI daily NAV (17,900+ schemes) + Nifty benchmark indices. Last updated: 2026-07-02. Interactive tool: https://mfpro.tigzig.com

## What is Percentile Rank?



Percentile Rank shows where a fund stands relative to all other funds in the comparison
 set for a given metric. A rank of 90 means the fund is better than 90% of the funds in
 the set. It converts every metric - regardless of unit or scale - into a simple 0-100
 number that answers: "How does this fund compare to the others?"

 


## How We Compute It


 
 1. Sort all funds by the metric value
2. Assign each fund a rank from 0 (worst) to n-1 (best)
3. Percentile Rank = (rank / (n - 1)) × 100
 

The direction of sorting depends on the metric. For metrics where **higher is
 better** (CAGR, Sharpe, Alpha, etc.), the highest value gets rank n-1 (percentile
 100). For metrics where **lower is better** (Max Drawdown, Downside Capture,
 Tracking Error, etc.), the lowest value gets rank n-1 (percentile 100).


The direction for each metric is defined in **METRIC_DIRECTION**, which is
 the single source of truth. This same configuration is used by both the "% Rank" toggle
 in the returns table and the Percentile Rank normalization in Dynamic Scoring.

 


## Worked Example



5 funds, ranked by 3Y CAGR (higher is better):


| Fund | 3Y CAGR | Sorted Rank | Percentile Rank |
| --- | --- | --- | --- |
| Fund E | 8.2% | 0 (worst) | 0 / 4 × 100 = 0 |
| Fund C | 11.5% | 1 | 1 / 4 × 100 = 25 |
| Fund A | 14.1% | 2 | 2 / 4 × 100 = 50 |
| Fund D | 16.8% | 3 | 3 / 4 × 100 = 75 |
| Fund B | 19.3% | 4 (best) | 4 / 4 × 100 = 100 |



Fund B (19.3% CAGR) is at the 100th percentile - best in the set. Fund A (14.1%) is at
 the 50th percentile - right in the middle.

 


## Direction Awareness



Not all metrics are "higher is better." The system automatically flips the ranking for
 metrics where lower values are better:




- **Higher is better:** CAGR, Sharpe, Sortino, Alpha, Calmar, Beat Rate, Upside Capture, Win Rate, Info Ratio, Treynor

- **Lower is better:** Max Drawdown (magnitude), Std Dev, Downside Capture, Tracking Error, VaR, CVaR, Ulcer Index, Excess Kurtosis



Direction flip - Max Drawdown


Fund A: Max DD = -8% (mild) → Percentile Rank = 100 (best)


Fund B: Max DD = -25% (severe) → Percentile Rank = 0 (worst)


Because lower drawdown is better, the fund with the smallest loss gets the highest
 percentile rank.

 
 


## Color Coding





- 75-100 (green): Top quartile - fund excels at this metric relative to the set.

- 50-74 (blue): Above median - better than most funds in the set.

- 25-49 (amber): Below median - weaker than most funds in the set.

- 0-24 (red): Bottom quartile - fund lags at this metric relative to the set.


 


## Important Notes





- **Relative to the comparison set:** Percentile rank depends entirely on
 which funds are selected. A fund at the 90th percentile among 5 large-caps might be at
 the 50th percentile if you add 5 more high-performing funds.

- **Requires 2+ funds:** With only 1 fund, there is nothing to rank against.
 The % Rank toggle is disabled when fewer than 2 funds are selected.

- **Benchmark included:** If a benchmark index is in the comparison set, it
 is ranked alongside the funds. This lets you see whether a fund is above or below the
 benchmark in percentile terms.

- **Magnitude is lost:** A fund with 20% CAGR and one with 19.5% CAGR may
 be at very different percentile ranks if they are adjacent in the sorted list. Percentile
 rank shows position, not distance. Use raw values alongside % Rank for the full picture.

- **Ties:** When two funds have identical metric values, they receive the same
 rank, which produces the same percentile.

## Related metrics

More Tools methodology from the MFPRO analytics tool:

- [Dynamic Scoring](/mfpro/dynamic-scoring)

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Source: https://www.tigzig.com/mfpro/percentile-rank