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Upgrades exceed downgrades in June

While 45 schemes got upgraded, 32 were downgraded in Value Research's June fund ratings

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.

Upgrades
Funds  Jun-10  May-10  Chg
DSPBR Treasury Bill 4 2 2
Magnum Equity 4 3 1
DSPBR Bond Ret 3 2 1
DSPBR Equity 5 4 1
Tata Income 2 1 1
Sahara Tax Gain 5 4 1
Templeton India Income Builder 4 3 1
UTI Master Value 4 3 1
LICMF Bond 4 3 1
Magnum Contra 4 3 1
Tata GSF 3 2 1
Birla Sun Life Gilt Plus Liquid 5 4 1
Principal Income 3 2 1
Magnum Gilt Long-term 2 1 1
HDFC Gilt Short-term 3 2 1
ICICI Prudential ChildCare-Study 4 3 1
Templeton India GSF Long-term 5 4 1
Templeton India GSF Treasury 4 3 1
ICICI Prudential Long-term Reg 5 4 1
DSPBR Short-term 3 2 1
HDFC Liquid Premium 5 4 1
HDFC Liquid Premium Plus 5 4 1
UTI Treasury Advantage Inst 4 3 1
Birla Sun Life Floating Rate ST 4 3 1
UTI Short-term Income Regular 4 3 1
Tata GSF HI 3 2 1
Magnum Gilt Long-term PF 2 1 1
Magnum Gilt Long-term PF FP3Y 2 1 1
UTI G-Sec Short-term 2 1 1
IDFC SSI Short-term Plan C 2 1 1
Reliance Regular Savings Debt Ret 4 3 1
Kotak Tax Saver 2 1 1
IDFC Imperial Equity Plan A 5 4 1
Religare Liquid Inst 3 2 1
Reliance Long Term Equity 4 3 1
IDFC Arbitrage Plan A 2 1 1
Religare Short-term Retail 4 3 1
Principal Pnb Long Term Equity 3Y I 2 1 1
DSPBR Strategic Bond Reg 4 3 1
AIG Short Term Inst 4 3 1
DWS Ultra Short Term Reg 4 3 1
DWS Ultra Short Term Inst 5 4 1
JP Morgan India Liquid Super Inst 4 3 1
IDFC Money Manager Investment B 3 2 1
LICMF Floating Rate ST 5 4 1

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.

Downgrades
Funds  Jun-10  May-10  Chg
ICICI Prudential Gilt Treasury 3 5 -2
Tata GSF Short Maturity 1 3 -2
Magnum Floating Rate ST 3 5 -2
ICICI Prudential Income Opportunities Retail 3 5 -2
Reliance Gilt Securities Retail 1 3 -2
Reliance Gilt Securities Inst 1 3 -2
Principal Tax Savings 1 2 -1
Kotak Bond Deposit 3 4 -1
Kotak Bond Regular 3 4 -1
Magnum Gilt Short-term 2 3 -1
IDFC Dynamic Bond Plan A 2 3 -1
Reliance Short-term 3 4 -1
Tata Liquid HI 2 3 -1
ICICI Prudential Gilt Investment PF 4 5 -1
L&T Opportunities 3 4 -1
ICICI Prudential Gilt Treasury PF 3 4 -1
ICICI Prudential Discovery 4 5 -1
Sahara Mid-Cap Fund 3 4 -1
Sundaram BNP Paribas S.M.I.L.E. Reg 4 5 -1
Canara Robeco Emerging Equities 2 3 -1
ICICI Prudential Blended Plan B 3 4 -1
Reliance Liquidity 4 5 -1
Sundaram BNP Paribas CAPEX Opp Reg-G 3 4 -1
DWS Money Plus Inst 1 2 -1
ICICI Prudential Eq & Der Inc Optimiser Retail 1 2 -1
DSPBR Tax Saver 4 5 -1
Taurus Infrastructure 4 5 -1
Kotak Emerging Equity 1 2 -1
SBI Short Horizon Debt Short Term Ret 3 4 -1
Religare Active Income Fund Retail 1 2 -1
HSBC Flexi Debt Regular 2 3 -1
DWS Gilt Reg 1 2 -1

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.

How They Stack Up
Fund House  *  **  ***  ****  *****  Total
ICICI Prudential 2 14 17 8 2 43
Birla Sun Life - 8 17 12 5 42
Franklin Templeton 2 3 18 11 4 38
UTI Mutual Fund - 8 14 10 4 36
HDFC - 3 15 9 7 34
SBI - 17 9 6 - 32
Tata 2 7 14 7 - 30
IDFC 1 8 11 3 2 25
DSPBR 4 3 6 7 4 24
Principal 2 6 10 3 2 23
Kotak Mahindra 3 5 8 6 - 22
Reliance 3 1 4 10 4 22
HSBC 8 5 5 1 - 19
J M 9 2 3 3 2 19
Sundaram BNP Paribas - 7 8 4 - 19
ING 1 5 8 3 1 18
LIC 6 6 1 3 2 18
Canara Robeco - 2 6 5 3 16
Deutsche 2 2 6 4 2 16
L&T 4 2 7 1 1 15
Fortis 4 2 - 3 4 13
Religare 1 1 6 2 2 12
Fidelity 1 3 4 3 - 11
AIG Global Inv - 1 6 2 - 9
Sahara - - 2 3 4 9
Taurus 1 4 1 2 - 8
Bharti AXA 2 4 - - - 6
JPMorgan 1 1 - 3 1 6
Benchmark - 2 - 1 2 5
Escorts 1 2 - - 1 4
Baroda Pioneer - 1 - 1 - 2
Edelweiss - 1 1 - - 2
Quantum - - - 1 1 2
Morgan Stanley - 1 - - - 1