The 4th edition of the Morningstar India Awards will be held at a ceremony on February 10, 2012.
The objective of the awards is recognise mutual fund schemes and fund companies that have added most value within the context of a relevant peer group for investors over the past year and over the longer term.
Morningstar gives out awards in 25 countries with winners being chosen by an acclaimed, consistent methodology that makes it a coveted event in the financial community globally.
Methodology
As our senior research analyst Vicky Mehta noted in an article last year, we stand out from the crowd of fund awards with our intent to not make the awards function into a "please-everyone" event through the "strength of the process through which winners are identified".
The awards are annual, so we believe it is appropriate to emphasise a fund's one-year performance. However, we do not wish to give awards to funds that have posted a strong one-year return, but have otherwise not delivered good results for investors over the long-term.
Therefore, the funds must also have delivered strong risk-adjusted three-year returns in order to obtain an award.
Further, they must have been in the top half of their respective peer groups in at least two of the past three calendar years; also, in the most recent calendar year (2011) they must feature in the top half of their respective peer groups.
We believe this combination ensures that the awards are given to funds that have been consistent performers. In effect, the winners are funds that have earned both strong one-year returns, and have also displayed the ability to earn strong long-term returns without undue risk.
Then there are the all-important qualitative checks. We certainly do not want to give awards to funds of the "flash in the pan" variety.
We study factors like stability in the investment team and adherence to the investment mandate, among others. The intention is to look for repeatability in performance, and in the process try to differentiate skill from luck.
Read the complete fund awards methodology here.
Types of awards
There are two types of Morningstar Fund Awards: Morningstar Category Awards and Morningstar Fund House Awards.
Morningstar Category Awards
These awards are given to the funds with the best risk-adjusted performance within their Morningstar Categories or groupings of Morningstar Categories, subject to qualitative review.
Morningstar Fund House Awards
These awards are given to the fund groups with the strongest performing fund line-ups on a risk adjusted basis. Fund performance is evaluated within the Morningstar Categories.
Nominations for Morningstar India Awards 2012
Morningstar Category Awards (funds listed in alphabetical order).
Equity
Large-Cap: UTI Dividend Yield | UTI Equity | UTI Opportunities Fund
Small/Mid-Cap: Birla Sun Life MNC | Tata Dividend Yield | UTI MNC Fund
ELSS (Tax Savings): Fidelity Tax Advantage | Franklin India Taxshield | Religare Tax Plan
Allocation
Conservative Allocation: Birla Sun Life Monthly Income | HDFC Multiple Yield Fund - Plan 2005 | UTI Monthly Income Scheme
Moderate Allocation: FT India Balanced | FT India Dynamic PE Ratio Fund of Funds | HDFC Balanced
Debt
Ultrashort Bond: Canara Robeco Floating Rate | JM Money Manager Super Plus Plan | Kotak Floater Long-Term
Short-Term Bond: Birla Sun Life Dynamic Bond Retail | HDFC High Interest Short Term Plan | Templeton India Short Term Income Plan
Intermediate Bond: Canara Robeco Income | Templeton India Income | UTI Bond
Morningstar Fund House Awards
Best Fund House (Equity)
Best Fund House (Debt)
Best Fund House (Multi-Asset)