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First-time VR ratings for nine funds

Altogether 10 funds entered Value Research ratings in April, of which nine were rated for the first time

Value Research Fund Ratings (risk-adjusted rating) identifies the best funds in the Indian mutual fund universe, giving investors a superlative platform to launch their mutual fund investment voyage, saving both effort and time.

The fund rating is a convenient composite measure of both risk and returns. It is purely quantitative and there is no subjective component to the rating system. Each category must have a minimum of 10 funds for it to be rated. A fund with less than Rs 5 crore of average assets under management (AAUM) over the past six months will not be eligible for rating.

Cumulative
In April the total number of upgrades exceeded downgrades: altogether 52 got upgraded while 44 funds got downgraded in April. The ratings of 487 funds did not change.

New Ratings
Altogether 10 funds entered the Value Research Ratings family in April. Out of the ten, nine funds got rated for the first time. Eight of them belong to the equity diversified category.

Two funds -- Taurus Infrastructure and Religare Contra - belonging to the equity diversified category, which got rated for the first time, straightaway jumped into the elite category to get a 4-star rating.

Two funds -- Religare Mid Cap and ICICI Prudential Fusion S-II Inst (both equity diversified) - which were rated for the first time in April secured a 3-star rating.

Among newly rated debt funds, Sahara Liquid Fixed Pricing, which belongs to the debt Ultra Short Term category, straightaway jumped into the elite 5-star rating category. This fund was rated 4-star way back in June 2008 after which it got rated next in April 2010.

Edelweiss Short Term Bond Ret, which belongs to the debt Liquid Plus category, got a 3-star rating for the first time in April.

Upgrades
Among rated funds, two funds -- Magnum Floating Rate ST (Debt: Floating Rate Short-term) and IDFC Money Manager Treasury C (Debt: Liquid Plus Inst) got upgraded by three notches in April. Magnum Floating Rate ST jumped from a 2-star rating in March to a 5-star rating; IDFC Money Manager Treasury C jumped from a 1-star rating to a 4-star rating; and Principal Income Short-term (belonging to the Debt Short Term category) got upgraded from a 3-star rating in March to a 5-star rating in April.
Altogether 39 funds got upgraded by one notch in April.

Upgrades
Funds  Apr-10  Mar-10  Change
Magnum Floating Rate ST 5 2 3
IDFC Money Manager Treasury C 4 1 3
Principal Income Short-term 5 3 2
UTI Mid Cap 3 2 1
Tata GSF Short Maturity 3 2 1
Tata Midcap 3 2 1
Tata Equity Management 3 2 1
Sundaram BNP Paribas S.M.I.L.E. Reg 5 4 1
Sundaram BNP Paribas Equity Multiplier 3 2 1
Magnum Midcap 2 1 1

Downgrades
Only one fund got downgraded by two notches in April. This was JM Short-term Reg (belongs to the debt short term category) which got downgraded from a 5-star rating earlier to a 3-star rating in April.
Altogether 43 funds got downgraded by one notch in April.

Downgrades
Funds  Apr-10  Mar-10  Change
Fidelity Flexi Gilt 2 3 -1
DSPBR Short-term 2 3 -1
DSPBR Savings Manager Conservative 2 3 -1
DWS Money Plus Inst 1 2 -1
Canara Robeco Gilt PGS 3 4 -1
Birla Sun Life Monthly Income 3 4 -1
Birla Sun Life Floating Rate ST 3 4 -1
Benchmark Derivative 2 3 -1
Baroda Pioneer Growth 4 5 -1
JM Short-term Reg 3 5 -2

Fund House Round Up
Altogether 14 funds each of Birla Sun Life, ICICI Prudential, Franklin Templeton, HDFC and Reliance Fund house had 4-5 star rated funds in April.

UTI AMC came next with 11 funds that were 4-5 star rated.

On a percentage basis (highest number of 4-5 star rated funds out of total number of rated funds), Sahara AMC topped the table: seven of its nine rated funds had 4-5 star rating in April. Following close behind was Reliance whose 14 out of total 23 rated funds had 4-5 star rating.

Benchmark and JP Morgan fund houses came next: their three funds (each) out of 5 rated funds (each) were 4-5 star rated in April. Nifty Junior BeES, JP Morgan India Liquid Retail (Debt: Ultra Short-term), JP Morgan India Treasury Retail (Debt Liquid Plus) and JP Morgan India Treasury Super Inst (Debt Liquid Plus Inst) were 4-star, 4-star and 5-star rated respectively in April.

As for the fund houses with the highest number of rated funds, Birla Sun Life and ICICI Prudential topped the table with 42 rated funds each. Next came Franklin Templeton with 38 rated funds and UTI AMC with 36 rated funds in April.

How They Stack Up
Fund House  *  **  ***  ****  *****  Total
Birla Sun Life 2 7 19 10 4 42
ICICI Prudential 1 12 15 10 4 42
Franklin Templeton 2 4 18 11 3 38
UTI Mutual Fund - 9 16 7 4 36
HDFC - 4 16 10 4 34
SBI 4 14 6 7 1 32
Tata 1 9 13 7 - 30
IDFC 4 5 11 4 1 25
Reliance 1 1 7 9 5 23
Kotak Mahindra 3 5 7 7 - 22
Principal 1 8 8 4 1 22
DSPBR 3 5 4 2 5 19
Sundaram BNP Paribas - 7 7 2 3 19
HSBC 7 5 5 2 - 19
ING - 5 8 4 1 18
J M 8 1 5 2 2 18
LIC 5 6 2 3 1 17
Canara Robeco - 2 6 5 3 16
L&T 5 2 6 1 1 15
Fortis 4 2 - 4 4 14
Deutsche 1 2 5 5 1 14
Religare 1 1 5 3 1 11
Fidelity 1 3 3 3 - 10
Sahara - - 2 3 4 9
AIG Global Inv - 1 5 1 - 7
Benchmark - 2 - 1 2 5
JPMorgan 1 - 1 2 1 5
Taurus 1 1 1 2 - 5
Bharti AXA 1 4 - - - 5
Escorts 1 2 - - 1 4
Baroda Pioneer - 1 - 1 - 2
Quantum - - 1 - 1 2
Edelweiss - 1 1 - - 2
Morgan Stanley - 1 - - - 1
Ratings as on April 30, 2010 - - - - - -