Mutual Fund Ranking
For the quarter ended June 2020
CMFR is the relative ranking of mutual fund schemes withina peer group. The basic criteria for inclusion in the rankinguniverse are three-year / one-year NAV history and AUM inexcess of category cut-off limits, and complete portfoliodisclosure. Three-year NAV history is considered across allequity, hybrid, dynamic bond, medium duration, medium tolong duration and gilt categories; whereas one-year forbanking & PSU, corporate bond, credit risk, liquid, lowduration, money market, ultra short term, short durationcategories.
While most ranking models use either returns or net asset value (NAV) for the purpose, CMFR evaluates both NAV and portfolio-based attributes. This presents a single-point analysis of mutual funds by considering the quality of the asset, risk-adjusted returns, liquidity, and asset concentration.
The rating agency assigns ranks or star-ratings to mutual funds on a scale of 1 to 5. For instance, CRISIL Fund Rank 1 indicates ‘excellent performance’ – top 10 percentile of funds in any peer group. The next 20 percentile falls under CRISIL Fund Rank 2.
Analytica