MUTUAL FUNDS RATINGS IN INDIA
India is the land of mutual fund schemes and policies. Mutual funds are usually misunderstood among various financial products in India. It helps in reducing investor related problems and do consist of pros and cons in India.
We all know the fact the mutual funds is a unit, consisting of pooling of money of various investors with similar interest. Investing in mutual funds consist of the shares, debt markets and market securities in India.
Ratings of the mutual funds are very vital and it is done by agencies like Morningstar, CRISIL (Credit Ratings Information Services Of India Limited) that is a global analytical company offering the ratings, and the market research in a systematic and satisfactory manner.
TWO BIGGEST MUTUAL FUND RATING SYSTEMS AVAILABLE IN INDIA:
There are two different kinds of mutual funds ratings systems available in India namely:
CRISIL Mutual Fund Ratings: A unique method that is developed based on the global practices, done by CRISIL (Formerly Credit Ratings Information Services Of India Limited). In the past 10 years, it has gained huge importance among various intermediaries, asset management companies and investors.
Customised Mutual Fund Rankings: Many personalised mutual fund rankings are available in India. This is done by advisory firms, wealth management and private banking companies in India.
MEANS TO CALCULATE MUTUAL FUND RANKINGS IN INDIA
There are ways to calculate and rank the mutual funds rankings in India. They are given below as follows:
Performance Rankings: One can select the mutual funds ranking in India in a logical fashion. You must track the performance of the mutual fund players in a systematic and satisfactory manner. One must also check the quarterly ranking (A unique procedure, giving information about way mutual funds performed against other kinds of funds). Ranking are beginning from 1 to 4).
Total Expense Ratio: It is one of major parameter to be looked, while taking up any mutual fund scheme. There are various management and distribution related expenses borne under the total expense ratio. SEBI (Securities and Exchange Board of India) is checking the mutual fund’s total expense ratio in a systematic and satisfactory manner.
Time Period: Most of the ranking of the mutual funds are done using the performance of mutual funds for approx. 5 years.
Experience: Mutual Fund companies in the market for 5 and more than 5 years will be taken into the considerations. Experienced players are given importance, while doing the ranking of the mutual fund companies.
Most of the ranking are calculated using the stock market fluctuations, portfolio allocations and other factors were considered while doing calculation of mutual funds.
TO KNOW MORE ABOUT MUTUAL FUNDS RATINGS AND INVESTMENTS: