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HDFC Rules Star Ratings

Finally, HDFC Mutual Fund has replaced Templeton India Mutual Fund as the fund house with maximum number of five star funds

Finally, HDFC Mutual Fund has ended the domination of Templeton India Mutual Fund to become the fund house with maximum number of five star funds. As per the revised list of top-rated funds released for the month of November, of its 29 rated schemes the fund house has four five star funds, including the newcomer HDFC Taxsaver.



Fund Families: How they Stack Up
AMC Name  *  **  ***  ****  *****
HDFC 4 7 11 3 4
Alliance Capital 1 1 3 4 3
Templeton India 1 5 6 11 3
UTI Mutual Fund 1 8 16 4 3
Birla Sunlife 2 4 7 2 2
J M - 2 4 3 2
Kotak Mahindra - 1 4 4 2
LIC 1 4 1 2 2
Reliance Capital - 3 1 2 2
Sahara 2 1 - - 2
Tata TD - 4 6 5 2
BoB 2  4 - 1
Cholamandalam - 1 4 2 1
DSP ML - 1 6 2 1
Escorts -  4 1 1
ING Vysya 1 1 2 2 1
Taurus 2 2 1 - 1
Canbank 5 4 1 2 -
Deutsche - 2 - 2 -
GIC 1 2 2 - -
HSBC 1 1 - 2 -
Principal - 5 8 7 -
Prudential ICICI 1 2 11 3 -
SBI 3 8 8 2 -
Standard Chartered 2 4 3 - -
Sundaram - 1 2 6 -


HDFC Taxsaver, which had slipped to four star family only last month, regained its five star tag, mainly on account of better return score vis-à-vis its peers. Of its 66 months of rating life as on November 30, 2004, the fund has never slipped below four stars and, in fact, enjoyed five stars for 51 months. As far as the performance is concerned, the fund has always outperformed the category average over a three-month, one, two, three and five years periods. Since launch, it has delivered an annualised return of 39.86 per cent.

On the other hand, with Franklin India Taxshield losing its five star tag this month, Templeton has slipped to the second position with only three top-rated funds in its kitty. The fund slipped to the four star family on account of reduced return and increased risk scores vis-à-vis its peers in November. Overall, the fund house still boasts of managing maximum number of five and four star funds (total 14).

Also, as many as seven funds have made it to the elite five star club. Two Alliance Capital Mutual Fund schemes, Alliance Cash Manager and Alliance Short-term, scaled to the top-rated funds' category, making the fund family one of the three fund houses with three five star funds.

Other new entrants include HDFC Taxsaver, ING Vysya Income Institutional, JM G-Sec PF Plan, JM Short-term Institutional and LIC MF Children's Fund.

After a 15-month wait in the four star club, Alliance Cash Manager finally gained entry into the exclusive club for the first time in its rating life in November. Alliance Short-term too has won five stars for the first time. However, it's a special case. Though the fund has not given any extraordinary returns, it has performed better than its peers and also improved on its risk score. JM G-Sec PF Plan too is in the same category-its return score has declined in November but the risk score has improved.

LIC MF Children's Fund has won five stars for the first time in its 19-month rating life on account of an impressive improvement in the return as well as risk scores. The fund has done exceedingly well so far this year-its year-to-date return is 3.15 against the category average of a miniscule 0.20 per cent.

ING Vysya Income Institutional and JM Short-term Institutional has started their rating life from the top club.

Six funds, including Canliquid Retail, Deutsche Premier Bond Institutional, Franklin India Taxshield, Kotak Gilt Investment Regular, Prudential ICICI Income LT and Reliance Short-term slipped to four star family in November.



The Five Star Club
Debt: Medium-term  Return 3M  Return 1Yr  Since Launch
BoB Income 0.46 5.32 5.65
Escorts Income 0.99 5.51 11.57
Kotak Bond Wholesale 0.30 1.20 11.12
LIC MF Children's Fund 1.97 4.27 7.64
Debt: Medium-term Inst      
ING Vysya Income Inst -0.35 1.05 3.70
Debt: Short-term      
Alliance Short-term 1.11 4.46 6.03
Sahara Short-term 0.92 4.72 6.46
Debt: Short-term Inst      
JM Short-term Institutional 1.17 5.03 5.80
Debt: Ultra Short-term      
Alliance Cash Manager 1.17 4.59 7.51
LICMF Liquid 1.21 5.02 6.08
Sahara Liquid 1.21 4.71 5.82
Templeton India TMA 1.13 4.63 7.70
Debt: Ultra Short-term Inst      
Alliance Cash Manager Inst 1.20 4.74 5.02
Equity: Diversified      
Franklin India Prima 19.10 49.65 22.95
HDFC Equity 16.89 31.14 19.81
Reliance Growth 17.86 50.91 28.46
Reliance Vision 16.92 29.14 24.57
Tata Growth 18.40 38.47 5.83
UTI Services Sector 22.81 42.02 34.08
Equity: Tax Planning      
Birla Taxplan '98 21.23 43.14 38.98
HDFC Long Term Advantage  18.17 61.15 45.46
HDFC Taxsaver 23.19 59.76 39.86
UTI MEP '99 20.25 39.84 35.35
Gilt: Medium & Long-term      
Chola Gilt Investment -1.07 1.67 13.22
JM G-Sec PF Plan -0.37 0.80 14.22
Libra Gilt 0.61 7.65 8.57
Gilt: Short-term      
Birla Gilt Plus Liquid 1.02 3.83 9.48
Kotak Gilt Saving 1.39 4.29 8.32
Hybrid: Debt-oriented      
Templeton India Pension 6.70 17.67 15.67
Hybrid: Equity-oriented      
HDFC Prudence 12.47 27.42 19.89
Unit Scheme '95 10.03 24.11 21.39
Hybrid: Monthly Income      
DSPML Savings Plus Moderate 3.46 8.51 12.23
Tata MIP 2.23 5.24 12.89


Note: Value Research rates only more than three-year-old equity and 18-month-old debt funds. Also, a category is rated only when the number of funds satisfying the above-mentioned criteria in it reaches at least ten. For more on Value Research Fund Rating system click here.