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Summary: Every month, some funds move up the Value Research Fund Ratings table and some slide down. We walk through July's upgrades among equity funds, what pushed them higher and where the cracks still show.
It is that time of the month again. Get your red and green markers out, as we set out to find which equity mutual funds got a rating upgrade.
Every month, as fresh return and risk data flows in, some funds climb the Value Research Fund Rating ladder while others slip down, and July has thrown up a few interesting movers.
A quick refresher on how our ratings work
Before we get to who made the cut, though, it helps to understand what actually goes into a Value Research rating in the first place:
- The Value Research Fund Rating is a composite measure of both returns and risk. It combines the Value Research Fund Return Grade and Fund Risk Grade to indicate a fund's risk-adjusted performance within its category. The rating is purely quantitative, and summarises how a fund has historically performed relative to peers, adjusted for risk.
- For every fund in a category, Individual Return Scores and Risk Scores are calculated. The Risk Score is then subtracted from the Return Score to arrive at a composite measure that forms the basis for the rating.
- Scores across two time periods are combined for a single assessment of where a fund stands within its category.
- For equity and hybrid funds, the five-year score gets a 60 per cent weight, and the three-year score gets a 40 per cent weightage.
- Funds without a five-year or three-year history are judged solely on their three-year or 18-month score.
With that out of the way, below is the list of equity funds that moved up the ratings ladder in July (note: we have excluded sectoral and thematic funds).
JM Large Cap Fund (3 to 4 stars)
Over the past three years, the JM Large Cap Fund has stayed ahead of its benchmark, the BSE 100 TRI, by more than two percentage points a year, holding its lead across most periods. Its three- and five-year trailing returns of 13.5 per cent and 12.5 per cent respectively beat both the category (12.9 per cent and 11.3 per cent) and the benchmark (11.2 per cent across both).
That said, the ride hasn't been smooth. Between August 2021 and January 2024, the fund trailed the benchmark, followed by a brief spell of outperformance until February 2025, when it slipped again. While there's been a recovery since December 2025, the margin over the benchmark and category remains thin.
Quant ELSS Tax Saver Fund (3 to 4 stars)
The Quant ELSS Tax Saver Fund has consistently outpaced its peers and the index (BSE 500 TRI), ranking fifth over three- and five-year periods and numero uno over 10 years.
Over the past year, it delivered 17.4 per cent (as of August 3, 2026), well ahead of the category's 7.1 per cent and the benchmark's roughly 5 per cent. Its three-year and five-year rolling returns of nearly 16 per cent and 15.8 per cent, respectively, tell a similar story.
But here’s the catch: the fund’s top 10 stocks make up nearly 66 per cent of the portfolio, while the top three sectors account for around 56 per cent. The fund is also large-cap heavy, with over 76 per cent in large-cap stocks against the category average of 62.3 per cent.
Quant Value Fund (3 to 4 stars)
Another equity offering of Quant has made it to the list. This fund, which is yet to complete five years, has already earned a four-star rating from us.
And why not, since the Quant Value Fund has given nearly 21 per cent returns since inception and 22.5 per cent over three years. Though it trailed its category and the BSE 500 TRI for much of last year, it picked up pace from April 2026 onwards and has since pulled well ahead of its peers and the benchmark.
HSBC Value Fund: The one that got full marks
HSBC Value Fund was the only one to jump to five stars in July.
Its long-term performance has been impressive, helping it rank fourth for three-year returns and first for five-year returns. Its three-year rolling return of 17.5 per cent comfortably beats the category's 14.5 per cent and the benchmark's 12.3 per cent.
Its five-year numbers tell a similarly strong story: 17.4 per cent versus the category's 14.4 per cent and the benchmark's 12.4 per cent. The portfolio also looks reasonably balanced, with no single stock dominating, though the top three sectors still make up 64 per cent of holdings.
Also worth a mention
Besides the top performers, here’s a list of funds that moved from two to three stars in July:
- Groww Value Fund
- Navi Flexi Cap Fund
- PGIM India Small Cap Fund
- Quant Large and Mid Cap Fund
- UTI Small Cap Fund
Should you rush to invest in any of these funds?
A rating upgrade is only one piece of the puzzle. What matters more is a fund's long-term track record across three, five and 10 years, its risk profile and whether it fits your own time horizon and financial needs.
That's where Value Research Fund Advisor can help; it offers a detailed read on your goals and risk appetite, along with in-depth portfolio analysis, to help you work out which funds genuinely deserve a place in your portfolio.
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