I have found that Sahara Growth Fund, which was rated 5-star, has suddenly disappeared from the list of 5-star rated equity diversified funds. May I know the reason behind this? Have I made a mistake by investing in this fund?
- Jaspal Singh
Funds need to qualify a set of criteria in order to enter the Value Research Fund Ratings Family. Out of these, one criterion is that funds need to have average assets of over Rs 5 crore in the last six months to get rated. Sahara Growth has not been able to qualify on this criterion and hence, became unrated since March 2009. This is why you saw it disappear from the list of rated funds.
Sahara Growth was a 5-star rated fund since November 2008. Last year when the markets tanked, it shed just 43 per cent as against the category's 55 per cent fall. It is a good large-cap pick. You have not made any mistake by investing in this fund. You can stay put.