Mutual fund ratings: When we shop online, the first thing that we do as a buyer is check the product rating. If we go for offline window shopping, we check the quality of the product. A product rating is an aggregated score, usually 1 to 5 stars, representing customer feedback, satisfaction, and perceived quality of an item.
With hundreds of thousands of mutual funds that exist today, mutual fund ratings make it easy to select the right fund or stock. Ratings help simplify investment decision-making by creating a simple metric that allows investors to select the right fund for their portfolio. For example, a 4-star-rated fund is superior to a 3-star fund and so on. So this helps investors make quick decisions based on simplified market data.
On that note, we have curated a list of mutual funds whose rating has been upgraded. In this article, we have collated such schemes whose Mutual fund ratings have been upgraded to 4 stars from 3 stars, according to a Value Research report. Take a look.
SBI Focused Fund had delivered a 15.62 per cent CAGR in 5 years. Zoom out to the last 12 months, and the story gets even better. The fund delivered a 16.32 per cent CAGR in 1 year. Even on a longer consistency lens, considering only funds with at least a 10-year history, SBI Focused Fund had delivered a 16.09 per cent CAGR in 10 years.
According to Value Research, the SBI Focused Fund rating has been upgraded from 3 stars to 4 stars. The report further highlighted that the focused funds that are mandated to have a concentrated portfolio of up to 30 stocks only. Such high concentration can lead to volatility since the portfolio is reliant on not more than 30 stocks.
Yet, the SBI Focused Fund has been an exception. Over the last five years, it has been the second least volatile fund in the category, falling only 7 per cent whenever the market fell 10 per cent.
The Mahindra Manulife Mid Cap fund was launched on 11 May 2017, with its direct plan delivering a powerful 21.56 CAGR in 7 years. On volatility, its standard deviation, which is a metric that tells you how much a fund’s returns usually vary. The fund’s standard deviation is 17.70 per cent.
According to Value Research, the SBI Focused Fund rating has been upgraded from 3 stars to 4 stars. The fund delivered a 15.33 per cent CAGR in 1 year. In 5 years, the Mahindra Manulife Mid Cap Fund had delivered a 19.31 per cent return.
Mahindra Manulife Mid Cap Fund details
(Source: Fund Fact Sheet)
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
