HDFC Mutual Fund dominates the list of Value Research top-rated funds once again. The fund house has to its credit six five-star funds. It has maintained this top slot for three months now. It accounts for nearly 18 per cent of the total five-star funds. It is closely followed by Franklin Templeton, Kotak Mahindra and Reliance-- all have four 5-star funds each. However, Franklin Templeton has maximum number of 4-star funds.
This month, the family of rated funds added sixteen more funds to their list. Of these two funds made to the five-star category straightaway: HDFC MIP Long-term and UTI MIS - Advantage Plan. Seven others got a four-star rating.
There were 32 upgrades and 31 downgrades this month, while 257 maintained a status quo. Six funds made it to the elite group of five-star funds. Eleven funds moved up the rating ladder from 3-star to 4-star. Franklin Templeton, Kotak Mahindra and SBI Mutual Fund boasted of three upgrades each this month.
Of the key downgrades, the noticeable were Chola MIP and DSPML Savings Plus Moderate which slipped down the rating ladder by two steps each. Chola MIP moved down to a 2-star rating while DSPML Savings Plus Moderate became a 3-star fund. Chola MIP, which was first rated in January 2005, has always hovered between a 4-star and 3-star rating. For the first time it has got rated as a 2-star fund. DSPML Savings Plus Moderate has never fallen below a 5-star rating, since the time it got rated. Its category beating returns on most occasions helped the fund stick to the 5-stars. Both these funds can attribute this downgrade largely to the fall in its return score, though they have reduced their risk steadily in the past few months. In July 2005, they under-performed the category by a maximum margin since their launch, which pushed them two steps down.
Others, which lost a single star each and lost their 5-star status were: Alliance Cash Manager Inst, DSPML GSF Longer Duration, FT India MIP, HDFC Children's Gift-Sav, HDFC Top 200 and Principal GSF Investment.
The following funds were pushed down to the lowest rating grade: Franklin India Taxshield '99, FT India Life Stage FoF 50s Plus, LIC MF Children's Fund, Principal PNB Debt and Templeton MIP-DM.