It does apply to funds whose total return data has been carefully organized and structured into an appropriate algorithm. Therefore, it is a mistake to select funds solely on the basis of expenses, turnover or a manager's tenure. W hile many financial scholars have come up with many helpful measures and procedures having to do with variability,volatility,risk and portfolio management, the selection of funds has never been adequately addressed. RVA that uses sets of formulas to place the performance of all funds on an equal statistical footing. In this way inferences can be made and verified as to expected performance outcomes.
T o identify high performing equity funds with a high probability of repeating results.
T o evaluate the performance of equity fund portfolio managers. T o provide an objective way of finding and tracking funds that consistently beat the benchmark. T o provide a formal tracking system that signals when mid-course corrections should be made to reach desired life goals. The input data of the algorithm is updated weekly to reflect current market conditions. Since the results reflect the market for that weekly period, there is no back-testing .