End of Section - Piotroski F-Score

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Transcript

Have come to the end of the discussion on Petroski f score. To recap, we know that we trust the F score is used to evaluate value stocks. The strategy for trading is that the value stocks which have a high Petrovsky f score should be bought and the value stocks which have a low Petrovsky f score should be shorted shorting means selling. Now in terms of mutual funds, we have to evaluate whether a mutual fund is investing in our good portfolio or not. So if you evaluate the value stocks in a mutual fund and find that the value stocks are having high Petrovsky f score, then the chances are the mutual fund will on excess returns is higher. So from among the value stocks which are available in our mutual fund portfolio, we can evaluate them using Petrovsky f score and then find out how does a mutual fund fare.

However, mutual funds usually have both value stocks and growth stocks. So evaluating just a value stocks may not be sufficient. So in the next section, we We'll study what is out evaluate the growth stocks and what is the G score g score is used to evaluate the growth stocks. Now then in the subsequent section we will see how we can put the F score and GIF score together to arrive at a single score for the mutual funds. Thank you for listening. See you in the next lecture.

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