Value Research's fund rating system combines return grades and risk grades into a single composite measure that assesses risk-adjusted performance within fund categories. For equity and hybrid funds, 60% weight is assigned to five-year scores and 40% to three-year scores. The resulting composite scores are then translated into star ratings, with higher ratings indicating better risk-adjusted performance relative to category peers.
The Bank of India Flexi Cap Fund achieved a 4-star to 5-star upgrade and ranks fifth in three-year SIP returns and third in five-year SIP returns. According to Value Research, the fund delivered 13.7% three-year SIP returns and 18.2% five-year SIP returns, outperforming its benchmark, the BSE 500 TRI, by over 7.5 percentage points annually. The fund maintains a 51% large-cap allocation versus the category average of 59%, with its top 10 holdings comprising only 30.4% of the portfolio.
The HSBC Large and Mid Cap Fund earned a 3-star to 4-star upgrade and ranks third in three-year SIP returns and fourth in five-year SIP returns. As reported by Value Research, the fund delivered 15% three-year SIP returns and 17.6% five-year SIP returns. The fund's long-term performance is particularly impressive, with five-year rolling returns of 17.5% since February 2006, compared to the category's 15.3% and benchmark's 11.7%.
The Bandhan Overnight Fund is a debt mutual fund scheme launched on January 18, 2019, currently managed by Brijesh Shah. The fund has an expense ratio of 0.12% and overall AUM of ₹813 crore. It is mandated to invest in bonds with maturity of just one day and allows minimum investments of ₹1,000 lumpsum and ₹100 SIP. The scheme seeks to offer an investment avenue for short-term savings by looking to generate returns in line with the overnight rates.
While ratings upgrades are encouraging, Value Research emphasizes that they should not be the sole factor in investment decisions. The analysis notes that multiple factors including investment horizon, risk appetite, and financial goals must be considered when evaluating fund suitability. The firm recommends subscribing to Value Research Fund Advisor for access to analyst-backed recommendations and personalized portfolio advice tailored to individual needs.
