While 45 schemes got upgraded, 32 were downgraded in Value Research's June fund ratings
06-Jul-2010 •Research Desk
As in May, in June too the total number of funds that were upgraded surpassed downgrades in Value Research's Fund Ratings: altogether 45 schemes got upgraded while 32 were downgraded. The ratings of 511 schemes remained unchanged.
Value Research Fund Rating, a risk-adjusted rating, is a convenient composite measure of both returns and risk. It is purely quantitative and there is no subjective component to the fund rating.
New ratings
Altogether 13 funds entered the rating regime in June compared to 17 in May. Of these 13 funds, 11 got rated for the first time. Six of them belong to the equity diversified category and the rest belong to liquid plus and short-term debt category.
DSPBR Micro Cap Reg and DSPBR Top 100 Equity Inst, both belonging to the equity diversified category, which got rated for the first time, straightway jumped into the best category -- a 5-star rating.
IDFC SSI Short-term Plan B, which is a short-term institutional debt fund, was rated 2-star way back in November 2004 after which it got rated next in June 2010.
Upgrades
As mentioned earlier altogether 45 schemes got upgraded in June. DSPBR Treasury Bill, a short-term gilt fund, was the only fund that got upgraded by two notches (from a 2-star rating in May to a 4-star rating in June). All the other 44 funds got upgraded by one notch during the month.
Among these upgraded schemes (44 of them), 10 funds inched up to the best performing category of 5-star rating from their previous month's 4-star rating. Some of these funds were DSPBR Equity (equity diversified), IDFC Imperial Equity Plan A (equity diversified), ICICI Prudential Long-term Reg (debt: medium-term) and LICMF Floating Rate ST (debt: floating rate short-term).
Around 17 schemes migrated to the second-best category of ratings (4-star) in June as compared to a 3-star rating in the preceding month. Of these 17 funds, four belonged to equity diversified and four to medium-term debt funds, while the rest were drawn from categories such as liquid plus, short-term gilts, ultra short-term and floating rate short-term.
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Downgrades
Altogether 32 schemes got downgraded in June. Around six schemes got downgraded by two notches during the month. Of these six, three funds -- ICICI Prudential Gilt Treasury (gilt: short-term), Magnum Floating Rate ST (debt: floating rate short-term) and ICICI Prudential Income Opportunities Retail (debt: medium-term) -- slipped from a 5-star rating in May to a 3-star rating in June. All the other 26 funds got downgraded by one notch during the month.
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Fund house round up
The fund house that had the maximum number of 4-5 star rated funds in June was Birla Sun Life AMC. Next came HDFC AMC with 16 funds that were rated 4-5 star.
As for the fund house with the highest number of rated funds, ICICI Prudential topped the table in June with 43 rated funds. It was followed by Birla Sun Life with 42 rated funds. Franklin Templeton and UTI AMC had 38 and 36 rated funds respectively in June.
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