The Most Authentic Guide on Personal Finance and Investments

(Funny) Words of Wisdom : "My wallet is like an onion, opening it makes me cry." ~ Anonymous

Mutual Fund CRISIL Ranking

CRISIL, an independent analytical company, provides — on a quarterly basis — ranking of the relative performance of various mutual fund schemes across different categories. Only open-ended funds are considered for ranking. 

Further the funds should have
a) A minimum 2-year NAV history (1-year for Liquid, Ultra Short-Term Debt, Short-Term Debt and Index funds),
b) AUM above a certain specified limit (e.g. Rs.50 crores for equity and liquid funds, Rs.25 crores for ELSS, income, gilt, ultra short-term debt and MIP funds, Rs.15 crores for balanced funds, Rs.10 crores for index funds),
c) Complete portfolio disclosure

The parameters which determine the ranking include the following:

Superior Return Score: This is the measure of the relative return and risk of a particular fund vis-à-vis the peer group.

Mean Return and Volatility: Mean return is the average daily return. Volatility is the standard deviation of these returns; higher the standard deviation more volatile the fund.

Portfolio Concentration Analysis: Both Industry and Company concentration is measured to ascertain whether the fund is adequately diversified. Higher concentration increases the fund risk.

Liquidity Analysis: This determines the ease with which the fund can be liquidated. This is important in case there is sudden redemption pressure on the fund.

Asset Quality: This is particularly important in case of debt funds and measures the probability of default by the issuer of the debt.

Modified and Average maturity: This parameter too is relevant for debt funds and shows how susceptible the fund is to the interest rate movements; longer the maturity, more is the fund volatility due to changes in interest rates.

Downside Risk Probability (DRP): This measures the probability of earning lower returns than the short-term risk free investment (91-day T-bill).

Asset Size: Considered for Ultra Short-Term Debt and Liquid Funds, it determines the impact of large inflows/outflows on the fund performance and the ability to manage these large flows. Higher the asset size, the better it is.

Tracking error: This is used for index funds to measure how closely they are able to track the underlying index. Lower the error, the better it is.

The ranking — for any given category — is from 1 to 5; 1 denoting ‘very good’ (top 10 percentile) performance and 5 ‘relatively weak’ (bottom 10 percentile) performance. This data is available on CRISIL's website for free.

You Learn A Lot By READING... And Even More By SHARING.

Share Button

Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

Subscribe via Email
Books by Sanjay Matai
[Click on the Pic for more info on my books.]
Powered by Blogger.


1. The best answer to 'Where should I invest my money'
Where to invest my money
The most honest and unbiased solution to your investment problem.


2. 51 Wasteful Money Habits Why We Fail To Become Rich
Wasteful Money Habits
You may be blowing away your money due to carelessness and stupidity.


3. Depreciation Loss in Vehicle Insurance? Think Zero!
Zero Depreciation Cover
Zero Depreciation Cover to leave you smiling among many disappointed faces.