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Selecting a mutual fund is not an easy task as there are nearly 38Asset Management companies (AMC) offering many funds. The first step for investors is decided has how to select a fund. With the 38 active players the mutual fund industry has mopped up nearly $8 billion through equity mutual fund schemes alone. This is due to the attributes of the indifferent performance player in the equity market.As an investor we wants a return on our investment, most investors tend to evaluate fund performance on a short-term basis. There is a need to educate investor about risk-adjusted return and also the total portfolio return.The key to investors return will be the funds ability to outperform the benchmark index on a consistent basis without taking lot of risks. Here's I prepared a blueprint for a structured approach to fund selection that is Z-Score. It is used on the based on the statistics on the group with smaller sample size, which means that almost surely stocks with better trailing 12 months performance experience higher net % change in number of shares, higher net raw change in number of shares, and higher net individual weight change compare to the worst performing stocks.

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