Two Year Performance Review

The performance in a two-year period is a very weak indicator of a fund’s quality or the effectiveness of a rating methodology. Still it gives a small hint about both.

In the two-year period from 02-Oct-2010 to 01-Oct-2012, Equity funds are down 3-4%, Equity-oriented Hybrid funds are flat or mildly positive, Sensex and Nifty are down 4%, Mid Cap Index is down 10% and Small Cap Index is down 17%.

Compared to them, the 2* - 5* funds are down 1-2% and the 1* funds are down a bit more than 4%. I guess the aim of avoiding extremely volatile funds is on track. Rest of it looks purely random, like it did one year ago.

Groups 5-star 4-star 3-star 2-star 1-star
Returns -1.39  -1.11  -2.10  -1.02  -4.26

PS: The apparently consistent good performance of 2* funds could be due to their average-tracking nature i.e. these funds should not be recovering so well when the market is on an upside move. But we need to wait for this to be proved.

One Year Performance (Class of October 2011)

In the one-year period from 02-Oct-2011 to 01-Oct-2012, Equity funds are up 14-16%, Equity-oriented Hybrid funds are up 14%, Sensex and Nifty are up 15%, Mid Cap Index is up 9% and Small Cap Index is up 3%.

Compared to them, the rated funds are also up in the narrow 14%-16% range though the performance of 4* and 5* funds is a bit better. So, no obvious conclusions yet.

Groups 5-star 4-star 3-star 2-star 1-star
Returns 15.58  15.61  14.42  14.71  14.95

Mutual Fund Ratings: October 2012

Fund Name	Risk	Return	Rating
HDFC Prudence	Below Average	Very High	*****
SBI Magnum FMCG	Low	Above Average	*****
DSPBR Balanced	Very Low	Above Average	*****
UTI Dividend Yield	Below Average	Very High	*****
HDFC Balanced	Low	Above Average	*****
Tata Balanced	Below Average	High	*****
ICICI Prudential FMCG	Low	Above Average	*****
Canara Robeco Balance	Low	Above Average	*****
Reliance Pharma	Average	Very High	*****
Birla Sun Life 95	Low	Above Average	*****
Reliance Regular Savings Balanced	Low	Above Average	*****
Birla Sun Life Asset Allocation Aggressive	Very Low	Average	*****
DSPBR Top 100 Equity Reg	Below Average	Above Average	*****
Birla Sun Life MNC	Below Average	Above Average	*****
FT India Life Stage FoF 20s	Low	Average	*****
UTI MNC	Below Average	Above Average	*****
Birla Sun Life Dividend Yield Plus	Average	High	****
UTI Opportunities	Average	Above Average	****
UTI Pharma & Healthcare	Low	Average	****
ICICI Prudential Dynamic	Average	High	****
HDFC Top 200	Average	Very High	****
HDFC Children's Gift-Inv	Low	Below Average	****
HDFC Growth	Average	High	****
Fidelity Equity	Average	High	****
FT India Balanced	Very Low	Below Average	****
Templeton India CAP Gift Plan	Very Low	Below Average	****
UTI Equity	Below Average	Average	****
Birla Sun Life Frontline Equity	Average	High	****
Franklin India Bluechip	Average	Above Average	****
Canara Robeco Equity Tax Saver	Above Average	Very High	****
DSPBR Equity	Above Average	High	****
Franklin India Prima Plus	Average	Above Average	****
Sahara Growth	Below Average	Average	****
Kotak Balance	Very Low	Low	****
Birla Sun Life India GenNext	Average	Average	****
HDFC Index Sensex Plus	Average	Average	****
Franklin India Taxshield	Average	Average	****
Canara Robeco Equity Diversified	Above Average	High	****
Tata Pure Equity	Average	Average	****
Principal Retail Equity Savings	Below Average	Below Average	****
HDFC Equity	High	Very High	****
Sahara Tax Gain	Above Average	Above Average	****
ICICI Prudential Balanced	Low	Low	****
Sahara Wealth Plus Variable Pricing	Below Average	Below Average	****
ICICI Prudential Advisor-Very Aggressive	Below Average	Below Average	****
Sundaram Balanced Reg	Below Average	Low	***
UTI Balanced	Low	Low	***
SBI Magnum Balanced	Below Average	Low	***
ICICI Prudential Top 100	Average	Below Average	***
Kotak 50	Average	Below Average	***
UTI Mastershare	Average	Below Average	***
UTI CCP Advantage	Low	Very Low	***
Sundaram Taxsaver	Above Average	Average	***
Tata Dividend Yield	High	Above Average	***
Sahara Wealth Plus Fixed Pricing	Below Average	Low	***
ING Balanced	Low	Very Low	***
Reliance Banking Retail	Very High	Very High	***
HDFC Taxsaver	Above Average	Average	***
HSBC Equity	Average	Low	***
Principal Balanced	Below Average	Very Low	***
BNP Paribas Dividend Yield	Average	Below Average	***
Reliance Equity Opportunities	Very High	High	***
SBI Magnum Equity	High	Average	***
HDFC Capital Builder	Above Average	Average	***
Franklin India Flexi Cap	Above Average	Average	***
Tata Index Sensex B	Below Average	Very Low	***
Reliance NRI Equity	High	Average	***
DSPBR Opportunities	Above Average	Below Average	***
Templeton India Growth	High	Average	***
Reliance Regular Savings Equity	Very High	High	***
Franklin Infotech	Average	Low	***
Birla Sun Life Buy India	Above Average	Below Average	***
ICICI Prudential Discovery	Very High	Above Average	***
SBI Magnum Multiplier Plus	High	Average	***
Reliance Growth	High	Above Average	***
UTI MEPUS	Average	Low	***
DWS Alpha Equity Regular	Above Average	Below Average	***
Tata Equity PE	Very High	Above Average	***
Sundaram Select Midcap Reg	Very High	High	***
Kotak Contra	Above Average	Low	***
UTI Transportation and Logistics	Above Average	Low	***
Kotak Opportunities	High	Average	***
ICICI Prudential Index Retail	Above Average	Below Average	***
HDFC LT Advantage	Above Average	Below Average	***
Reliance Tax Saver	High	Below Average	***
Kotak Equity FoF	Above Average	Low	***
SBI Magnum Taxgain	Above Average	Low	***
Baroda Pioneer Growth	Above Average	Below Average	***
ICICI Prudential SPIcE	Above Average	Low	**
Principal Global Opportunities	Below Average	Unacceptable	**
Reliance Diversified Power Sector Retail	High	Below Average	**
UTI Banking Sector Reg	Unacceptable	High	**
ING Large Cap Equity	Above Average	Low	**
Reliance Vision	High	Below Average	**
Goldman Sachs Nifty ETS	High	Low	**
Escorts Balanced	Average	Very Low	**
ICICI Prudential Top 200 Inst I	High	Below Average	**
Sundaram Select Focus Reg	Above Average	Low	**
HDFC Premier Multi-Cap	High	Below Average	**
SBI Magnum Contra	High	Below Average	**
Baroda Pioneer Balance	Average	Unacceptable	**
LIC Nomura MF Balanced	Average	Unacceptable	**
HDFC Core & Satellite	Very High	Below Average	**
ING Core Equity	High	Low	**
HSBC India Opportunities	Above Average	Very Low	**
Birla Sun Life Mid Cap	Unacceptable	Average	**
Canara Robeco Nifty Index	Above Average	Very Low	**
SBI Magnum Pharma	High	Very Low	**
UTI Master Plus '91	Above Average	Very Low	**
Franklin India Index NSE Nifty	High	Low	**
Franklin India Index BSE Sensex	High	Very Low	**
Goldman Sachs Banking BeES	Unacceptable	High	**
Taurus Tax Shield	Very High	Below Average	**
Tata Tax Saving	High	Very Low	**
Tata Index Nifty Plan A	High	Very Low	**
UTI Nifty Index	High	Very Low	**
UTI Master Value	Unacceptable	Average	**
ICICI Prudential Top 200	Very High	Low	**
DSPBR Technology.com Reg	High	Low	**
Sahara Mid-Cap Fund	Unacceptable	Average	**
UTI Equity Tax Savings	Above Average	Very Low	**
ICICI Prudential Tax Plan	Very High	Below Average	**
BNP Paribas Equity	High	Very Low	**
Tata Ethical	Very High	Below Average	**
ICICI Prudential Infrastructure	Very High	Low	**
ICICI Prudential ChildCare-Gift	Very High	Low	**
Principal Index	High	Very Low	**
SBI Magnum Index	High	Very Low	**
Birla Sun Life Index	High	Very Low	**
Principal Dividend Yield	High	Very Low	**
LIC Nomura MF Index Nifty	Above Average	Unacceptable	**
Sundaram S.M.I.L.E. Reg	Unacceptable	Average	**
ICICI Prudential Technology	Very High	Low	**
Tata Index Sensex Plan A	High	Very Low	**
DWS Investment Opportunity Regular	Very High	Low	**
SBI Magnum Global	Unacceptable	Below Average	**
IDFC Classic Equity Plan A	High	Very Low	**
Birla Sun Life Equity	Very High	Low	**
LIC Nomura MF Index Sensex	Above Average	Unacceptable	**
Tata Growth	Very High	Very Low	**
Birla Sun Life Tax Plan	High	Very Low	**
HDFC Index Nifty	High	Very Low	**
LIC Nomura MF Sensex Advantage	Above Average	Unacceptable	*
Tata Equity Opportunities	Very High	Low	*
DSPBR T.I.G.E.R. Reg	Very High	Very Low	*
HDFC Index Sensex	High	Unacceptable	*
L&T Opportunities	Unacceptable	Low	*
SBI Magnum Emerging Businesses	Unacceptable	Below Average	*
SBI Magnum COMMA	Very High	Very Low	*
L&T Midcap	Unacceptable	Low	*
Taurus Starshare	Unacceptable	Low	*
UTI Mid Cap	Unacceptable	Low	*
Franklin India Prima	Very High	Very Low	*
Canara Robeco Emerging Equities	Unacceptable	Low	*
Tata Infrastructure	Very High	Very Low	*
Franklin India Opportunities	Very High	Very Low	*
Goldman Sachs Nifty Junior BeES	Unacceptable	Low	*
Morgan Stanley Growth	Very High	Very Low	*
Principal Personal Tax Saver	Unacceptable	Very Low	*
Birla Sun Life Tax Relief 96	Unacceptable	Very Low	*
JM Balanced	High	Unacceptable	*
Kotak Mid-Cap	Unacceptable	Very Low	*
UTI Infrastructure	Very High	Unacceptable	*
UTI Services Industries	Very High	Very Low	*
Birla Sun Life Advantage	Very High	Very Low	*
Sundaram Growth Reg	Unacceptable	Very Low	*
L&T Growth	Very High	Very Low	*
LIC Nomura MF Growth	Very High	Unacceptable	*
Reliance Media & Entertainment	Unacceptable	Very Low	*
SBI Magnum IT	Very High	Very Low	*
SBI Magnum MultiCap	Very High	Unacceptable	*
Escorts Growth	Very High	Unacceptable	*
Birla Sun Life India Opportunities	Very High	Unacceptable	*
Birla Sun Life New Millennium	Very High	Unacceptable	*
LIC Nomura MF Opportunities	Very High	Unacceptable	*
LIC Nomura MF Tax Plan	Very High	Unacceptable	*
Baroda Pioneer ELSS 96	Very High	Unacceptable	*
LIC Nomura MF Equity	Unacceptable	Unacceptable	*
Escorts Tax Plan	Very High	Unacceptable	*
ING Midcap	Unacceptable	Unacceptable	*
Taurus Bonanza	Unacceptable	Unacceptable	*
ING Tax Savings	Unacceptable	Unacceptable	*
Principal Tax Savings	Unacceptable	Unacceptable	*
Principal Growth	Very High	Unacceptable	*
ICICI Prudential Midcap	Unacceptable	Unacceptable	*
SBI Magnum Midcap	Unacceptable	Unacceptable	*
Taurus Discovery	Unacceptable	Unacceptable	*
HSBC Midcap Equity	Unacceptable	Unacceptable	*
JM Equity	Unacceptable	Unacceptable	*
JM Basic	Unacceptable	Unacceptable	*