Freefincal has launched an enhanced Excel-based index fund screener covering over 150 funds, designed to help investors evaluate how closely their funds follow benchmarks using metrics like tracking error and return difference, with updates aimed at improving comparison accuracy and recognising ETF specificities.
Freefincal has released an updated index fund screener for August 2026 that aims to help investors judge how closely a fund follows its benchmark, using both tracking error and return difference. The screener now covers more than 150 index funds and is built as an Excel file that can be opened in standard spreadsheet software. According to the site, it is designed to make it easier to compare how funds tracking broader benchmarks such as the Nifty 100 or Nifty 500 behave versus those tied to larger, more liquid indices such as the Sensex or Nifty.
The file is split into two sections. One compares trailing returns for more than 40 index funds over one- to eight-year periods with their benchmarks and shows the return gap directly. The second lists tracking error for more than 30 funds over the same time frames. That distinction matters: tracking error captures the volatility of a fund’s return gap over time, while tracking difference shows the actual performance shortfall or outperformance versus the index. Industry explainers from Fidelity and ETF Beacon describe tracking error as a standard deviation measure, while other investor guides note that both expenses and portfolio mechanics can drive the gap between a fund and its benchmark.
Freefincal says investors should not chase the single lowest number, whether that is tracking error or return difference. Instead, the site suggests looking for funds that repeatedly rank among the better performers across several periods, since consistency matters more than a one-off result. It also argues that return difference can be more useful than tracking error when expense ratios are changing, because a fund may appear efficient on one measure while still lagging its benchmark in practice. The site says monthly updates should help show whether higher total expense ratios are beginning to weigh on performance.
The screener also includes a warning for exchange-traded funds. Freefincal says ETF tracking should be judged using price data rather than net asset value, because ETF returns are driven by market price, not just the value of the underlying holdings. The firm is charging Rs. 200 for personal use of the current month’s file and says the purchase does not include recommendations or follow-up help. It also says the sheet has been checked carefully but cannot be guaranteed error-free.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
