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New fund categories on Value Research Online

We have launched our updated fund categorisation framework that is based on SEBI's new system

Starting today, our readers will notice a big change on our website, as well as in Value Research's publications. Our fund categorisation system has undergone a massive change, which is the biggest single overhaul it has had since it was first started in 1994. This change is not voluntary--it was triggered by a complete reorganisation of fund types that has been enforced by the market regulator SEBI. There are pluses as well as minuses of SEBI's action, but on the whole, it should be a positive for fund investors.

The table below gives you an idea of how things have changed. There are a few things we would like to point out:

  1. We have not followed the SEBI system precisely. We have distributed the official 'Focussed', Index/ETF, Funds of Funds, and 'Solution-Oriented' funds into whichever categories they fitted in as per their portfolio. We believe this serves investors' needs much better.
  2. You will notice that our star ratings have changed substantially. This is inevitable, as these ratings are category-wise and the categories have changed extensively.
  3. Now on, we will rate direct and regular plans separately, i.e., regular plans will be compared against other regular plans, and direct plans will be measured against other direct plans. So, don't worry if you see a fund's direct plan being rated lower than it's regular plan. 
  4. A small number of funds which used to be rated earlier are no longer rated. There are two reasons for this:
    1. Some funds' basic characteristics have changed. In these cases, the funds will be rated only when they have built up a long enough track-record in their new avatar. This is 18 months for debt funds and 3 years for equity and hybrid funds.
    2. We do not rate categories that are smaller than ten funds as the sample for comparison has to be a certain minimum size. Since, under the new system, there are a larger number of generally smaller categories, many funds which were formerly rated are now in small categories.

Roughly Equivalent Categories

Old Category Funds New Category Funds
    Debt: Banking and PSU 17
    Debt: Corporate Bond 19
Debt: Credit Opportunities 25 Debt: Credit Risk 18
Debt: Dynamic Bond 22 Debt: Dynamic Bond 28
    Debt: Floater 6
Debt: FMP 805 Debt: FMP 805
Debt: Gilt Short Term 4 Debt: Gilt 26
Debt: Gilt Medium & Long Term 29 Debt: Gilt with 10 year Constant Duration 5
Debt: Liquid 52 Debt: Liquid 39
    Debt: Long Duration 2
    Debt: Low Duration 26
    Debt: Medium Duration 17
    Debt: Medium to Long Duration 17
    Debt: Money Market 14
    Debt: Overnight 4
Debt: Short Term 43 Debt: Short Duration 32
Debt: Ultra Short Term 59 Debt: Ultra Short Duration 20
Debt: Income 54    
Equity: Tax Saving 69 Equity: ELSS 68
Equity: International 39 Equity: International 39
    Equity: Large & MidCap 22
Equity: Large Cap 131 Equity: Large Cap 111
Equity: Mid Cap 67 Equity: Mid Cap 30
Equity: Multi Cap 124 Equity: Multi Cap 121
Equity: Banking 19 Equity: Sectoral-Banking 19
Equity: FMCG 2 Equity: Sectoral-FMCG 2
Equity: Infrastructure 21 Equity: Sectoral-Infrastructure 22
Equity: Pharma 6 Equity: Sectoral-Pharma 6
Equity: Technology 5 Equity: Sectoral-Technology 5
Equity: Small Cap 37 Equity: Small Cap 37
    Equity: Thematic 13
    Equity: Thematic-Consumption 8
    Equity: Thematic-Dividend Yield 5
    Equity: Thematic-Energy 4
    Equity: Thematic-MNC 3
    Equity: Thematic-PSU 3
    Equity: Value Oriented 16
Equity: Others 26    
Hybrid: Equity-oriented 57 Hybrid: Aggressive Hybrid 38
Hybrid: Arbitrage 20 Hybrid: Arbitrage 20
    Hybrid: Balanced Advantage 2
Hybrid: Debt-oriented Aggressive 40 Hybrid: Balanced Hybrid 12
Hybrid: Debt-oriented Conservative 211 Hybrid: Conservative Hybrid 241
Hybrid: Asset Allocation 9 Hybrid: Dynamic Asset Allocation 17
    Hybrid: Equity Savings 16
    Hybrid: Multi Asset Allocation 16
Hybrid: Others 15    
Gold: Funds 23 Commodities: Gold 23