ICRA rates MFs for first time

NEW DELHI, FEB. 26. For the first time the rating agency Investment Information and Credit Rating Agency (ICRA) has come out with performance ranks for mutual fund schemes across categories. The ratings, based on a scientific and objective ranking methodology developed by ICRA Online, considered all existing open-ended mutual fund schemes in the country, the agency said.

According to the ICRA Online ratings, the toppers in the gilt schemes category include IL&FS Gilt Fund and Birla Gilt Plus Liquid Plan.

Among debt schemes, HSBC Income Fund-Investment Plan (regular) was the winner in the long-term debt category while Reliance Short-term Debt Fund was the topper in the short-term debt category. LIC MF Liquid Fund, Alliance Basic Industries Fund and HSBC Equity Fund were also in the number one position for their performance in their respective categories.

The Birla MF Scheme has topped twice in the sectoral schemes (technology) and equity linked savings scheme categories. HDFC Prudence Fund was the best balanced fund in that category while Alliance Monthly Income was the top marginal equity scheme. UTI Nifty Index Fund topped the index scheme category, ICRA Online announced.

The ranking parameters that ICRA Online used for the evaluation included risk adjusted returns, portfolio concentration (both company-wise and sector-wise), liquidity, corpus size, average maturity and portfolio turnover. Maximum weightage was assigned to risk adjusted returns.

The classification of the mutual fund schemes was done on the basis of their individual asset allocation and investment pattern.