- Want to know on what basis a mutual fund get the topmost 5-star rating?
- It's on the basis of the good performance in 1, 3, 5 and 10 years
The rating of a financial instrument, be it a mutual fund, carries a lot of importance for an investor wanting to put their hard earned money in the said asset class. There are several rating agencies such as Value Research that rate mutual funds in 1 to 5 stars based on how they have performed over different periods. The 5-star rated mutual funds are the ones that have delivered consistently good returns in a span of 3, 5 and 10 years. Also, such kind of rating is assigned to funds that have not only grossed more than their benchmark but also exceeded the average return of the fund category. You can thus choose these 5-star rated mutual funds across the categories of equity, debt and hybrid according to your risk-appetite.
Equity Mutual Funds with a 5-star Rating
These funds invest mainly in equity and equity-related instruments of companies. The objective of these funds is to appreciate the growth of invested capital over time.
|Equity Funds with a 5-star Rating||1-year Return||3-year Return||5-year Return||10-year Return|
|Reliance Large Cap Fund||-7.25%||8.10%||9.49%||12.02%|
|Axis Bluechip Fund||0.69%||12.61%||10.93%||-|
|Motilal Oswal Multicap 35 Fund||-9.40%||7.84%||14.93%||-|
|SBI Small Cap Fund||-12.67%||10.93%||17.80%||-|
|HDFC Small Cap Fund||-15.62%||8.14%||11.64%||13.87%|
|Mirae Asset Tax Saver Fund||-2.56%||13.21%||-||-|
|Axis Long Term Equity Fund||-2.84%||10.14%||12.32%||-|
Debt Mutual Funds with a 5-star Rating
These funds invest a heavy chunk of the corpus in debt and money-market instruments. The investments can lead to regular income generation.
|Debt Funds with a 5-star Rating||1-year Return||3-year Return||5-year Return||10-year Return|
|Reliance Liquid Fund||7.47%||7.10%||7.60%||7.85%|
|Baroda Liquid Fund||7.36%||7.08%||7.61%||7.86%|
|Axis Liquid Fund||7.39%||7.10%||7.60%||-|
|HDFC Short Term Debt Fund||9.35%||7.68%||8.38%||-|
|Franklin India Short Term Income Plan - Retail Plan||7.94%||8.37%||8.73%||8.73%|
|Baroda Short Term Bond Fund||8.90%||8.01%||8.46%||-|
|Franklin India Low Duration Fund||8.45%||8.47%||9.00%||-|
|SBI Magnum Low Duration Fund||8.55%||7.50%||8.00%||8.00%|
|Franklin India Dynamic Accrual Fund||8.40%||8.39%||9.41%||8.18%|
Hybrid Mutual Funds with a 5-star Rating
If you invest in these funds, you will most likely receive the benefits of capital appreciation and income generation. It’s because of the fact that investments are made in both equity and debt instruments.
|Hybrid Funds with a 5-star Rating||1-year Return||3-year Return||5-year Return||10-year Return|
|HDFC Retirement Savings Fund - Hybrid Equity Plan||-2.05%||8.23%||-||-|
|Principal Hybrid Equity Fund||-7.00%||8.49%||9.45%||10.98%|
|Mirae Asset Hybrid Equity Fund||0.40%||9.20%||-||-|
|ICICI Prudential Regular Savings Fund||5.99%||7.89%||9.61%||9.65%|
|HDFC Equity Savings Fund||1.49%||6.85%||7.57%||9.12%|
|Aditya Birla Sun Life Balanced Advantage Fund||0.68%||6.45%||8.13%||9.59%|
How to Invest in a 5-star Rated Mutual Fund?
You can invest in any of the 5-star rated mutual funds shown above at Wishfin, a neutral financial marketplace that keeps in place a broad array of mutual fund schemes for investors to subscribe. The process to invest is explained through points below.
- Visit www.wishfin.com
- Go to ‘Mutual Funds’ tab
- Click on ‘Register/Login
If you are a new investor, you need to click on ‘Register’
- Enter your mobile number
- Enter the OTP received on your mobile number
- Mention the personal information such as name, email ID, the city you live in
- Enter the password complying with the requirements as laid down
- Click on ‘Sign Up’
The online login access can be created by mentioning a few more details.
- Log in using your mobile number on email ID and OTP
- Find 5-star rated mutual funds and click on ‘Invest’ under the select scheme
Note – The data is sourced from Value Research as on August 20, 2019, and pertains to the regular plan of the schemes shown above.
Disclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing.