6 equity funds just got a ratings upgrade. Own any?

Summary: Among the six upgraded funds this month, one flexi-cap made the leap from three to four stars. And even as tax-saving funds lose their shine, two just earned a ratings boost. Register now to see the full list. In the first week of every month, the Value Research Ratings pageantry comes to town. The green and red felts are out, the scores are tallied and mutual funds across the board wait with bated breath. This month’s round brought good news for six active equity funds, all of which saw their Value Research Ratings move up a notch. Five of them climbed from two stars to three, while one fund — Mahindra Manulife Flexi Cap Fund — rose to a solid four-star rating. But before we reveal the full list, let’s take a quick detour into what these ratings actually mean, and how you should use them. What Value Research Ratings really mean Our fund ratings are designed to make life easier for investors. They offer a quick, objective snapshot of how a fund has performed, not just in terms of returns, but also in how much risk it took to get there. Put simply, our rating is a single score that blends two things: Returns delivered, and Risk taken to deliver those returns. This gives us a risk-adjusted return score, which we then compare against other funds in the same category. A five-star fund ranks among the best; a one-star fund, among the weakest. For equity and hybrid funds, we combine the three-year and five-year scores (with a 60 per cent weig