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Value Research ratings are useful, but how to choose from a fund category which is unrated?

"Some categories are unrated because they don't form a homogeneous set," says Dhirendra Kumar

Answer transcript: I can't think of any meaningful category which isn't rated. Some categories are unrated because they don't form a homogeneous set. We don't rate international funds because they are all different. For example, it has 3-4 US oriented funds, a mining find, a Brazil fund etc. Even though they are all called international funds, they are not a homogeneous set and behave in a very erratic manner. We also have a category called equity others which we don't rate because its funds are highly dissimilar.

This article was originally published on April 06, 2017.


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