Wednesday, June 17, 2009

Mutual Fund Rating

You must have heard about “Mutual Fund Rating”. This Article is all about What is “Mutual Fund Rating” and Why is is it so important?

What is Mutual Fund Rating?

Well, Mutual Fund Rating is the star rating (usually up to 5-star) that various Mutual Fund Rating Agencies (Other than MF Houses itself) give to every mutual funds after thoroughly analyzing literally dozens of criterias.

Here are the criterias by which Mutual Fund Rating Agencies rate the Mutual Funds -

- Performance of Mutual Fund

- Comparison with Benchmark

- Comparison with Peers

- Fund Manager

- Advanced Portfolio Stats. Such as Beta, Alpha, PE, R-Squared and many more…

- Fund House Reputation

- And many more criterias

Why MF Rating is so important?

Well, Because it simplifies your Fund choosing process. Because any market is full of mutual funds that sometimes in developed markets such as USA, number of mutual funds exceeds the number of stocks. So analyzing each and every mutual fund is a lengthy, tiresome and out of scope work for many professional people who don’t get time from their job.

So MF Rating makes your fund choice procedure easy and smooth.

Which are the Mutual Fund Rating Agencies in India?

There are many MF Rating Agencies in India. Click Here to read the Article,

Best Mutual Fund Rating Agency in India

According to my Knowledge, The 2 Best Fund Rating agencies of India are Valueresearchonline.com & Mutualfundsindia.com

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