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Seven New 5-starers

While 7 funds gained the 5-star rating in Sept, 8 funds lost theirs. See what else happened in the Rating Radar

September 2008 hasn’t been a fruitful month for the Indian capital markets. Investors, listed companies and fund houses, all have bore a brunt of the global financial turmoil and hence, it comes as no surprise that mutual funds have had a torrid time all through the month. Fund companies shed a substantial amount of their assets and all equity fund categories ended the month with negative returns.

Consequently, in September, the funds that lost their 5-star status in the Value Research Fund Rating outnumbered the funds that gained this prestigious status. The eight funds that lost their 5-star ranking were DSPML Equity, HDFC Top 200, JM Basic, UTI Master Index, Birla Sun Life Income, DWS Insta Cash Plus, DWS Money Plus and Templeton IGSF Long-term. Of these the first three are equity diversified funds.

On the other hand, seven funds gained entry into the elite Value Research Five Star Fund family. These funds were Magnum Comma, Sundaram BNP Paribas Select Focus Reg, Escorts Liquid, Canara Robeco Gilt (PGS), Canara Robeco Liquid Plus Retail, Sahara Income and UTI Sunder. Of these, only the first two are equity diversified funds.

While Magnum Comma, Sahara Income and Escorts Liquid have been rated 5-star for the first time, the rest of the lot regained their lost 5-star status.

Another notable change in the month was that as many as 18 funds got rated for the first time. ICICI Prudential Infrastructure has straightaway made it to the list of 5-star funds. Five of the new members have been rated as 4-star and five are rated 3-star. Three of these funds are equity diversified funds: ICICI Prudential Infrastructure, Sahara Wealth Plus Variable Pricing and ABN AMRO Dividend Yield.

Amongst the fund families, Birla Sun Life held to its throne with seven of its funds finding a place in the elite category of 5-star funds. ICICI Prudential held five 5-star funds while SBI had four 5-star funds. However, when it comes to 4-star funds, ICICI Prudential Mutual Fund tops the list with a total of 12 funds. It was closely followed by Tata Mutual Fund and Franklin Templeton Mutual Fund with 11 4-star funds each. And yet again, when the 4- and 5-star rated funds are taken together, ICICI Prudential clearly leads the charts with a total of 17 funds.

In all, the month saw 38 upgrades and 40 downgrades while 372 funds maintained a status quo. The most significant upgrade was that of Escorts Liquid which moved two steps up from its prior 3-star status while the most significant downgrade was that of Birla Sun Life Gilt Plus PF which got demoted to 1-star from its previous 3-star status.




How they Stack up?
Fund House  1  2  3  4  5
ABN AMRO 3 2 3 - 1
Baroda Pioneer - 2 2 - -
Benchmark 2 - 1 1 -
Birla Sunlife 4 6 15 7 7
Canara Robeco 1 - 5 3 2
DBS Chola 3 3 5 1 1
Deutsche 2 - 1 4 2
DSP ML 2 5 4 3 3
Escorts 1 - 1 - 1
Fidelity - 1 3 2 -
Franklin Templeton 1 6 15 11 3
HDFC 3 8 12 6 3
HSBC 1 2 7 5 2
ICICI Prudential - 10 8 12 5
IDFC 3 1 3 4 -
ING 2 2 5 6 -
J M 4 8 1 1 -
Kotak Mahindra 1 6 8 4 2
LIC 1 5 5 3 1
Lotus India - 1 4 1 -
Principal 2 4 8 4 2
Quantum - - 1 - -
Reliance 1 2 7 6 2
Sahara - 1 2 2 1
SBI 5 5 7 3 4
Sundaram BNP Paribas - 7 3 3 2
Tata 1 8 10 11 1
Taurus 1 3 1 - -
UTI Mutual Fund 4 10 13 5 3
As on 30th September 2008