Understanding the Dhanik Score

Using Dhanik

3 min read

The Dhanik Score (0–100) blends three objective signals into one number:

  • Rating (50%): the fund's percentile rank within its own sub-category.
  • Risk-adjusted return (30%): the Sharpe ratio — return per unit of risk.
  • Cost (20%): the expense ratio (lower is better).

It maps to a verdict: 80+ Excellent, 65–79 Good, 50–64 Average, below 50 Below average. It's a starting point for research, not a buy/sell call.

→ Read the full method on How We Rank.