Tomorrow, Morningstar India will host its sixth annual fund awards ceremony. As has been done earlier, we do so to acknowledge the mutual fund schemes and asset management companies that have added most value for investors not only over the past year but over a longer term.
At Morningstar, we believe that since the awards are annual, it is appropriate to emphasise a fund’s 1-year performance. That does not mean we award funds that have posted a strong 12-month return but have failed to deliver over the long term. The winners should also have delivered strong 3- and 5-year returns after adjusting for risk.
Further, they must be in the top half of their respective peer groups in at least three of the past five calendar years, the most recent one being mandatory. In other words, this year’s winners should feature in the top half of their respective peer groups for calendar year 2013.
By following these yardsticks, only the consistent performers are awarded. They are the ones which have displayed strong 1-year returns and the ability to reward investors over the long term without undertaking undue risk.
It does not stop there. We put in the hard yards to ensure that the performance is no flash in the pan and the qualitative checks justify our stance. Stability in the investment team, adherence to the investment mandate, and other such factors are considered. In the process, we differentiate skill from luck.
Below are the finalists in alphabetical order within the category:
Equity: ELSS
- Birla Sun Life Tax Plan
- HDFC Long Term Advantage Fund
- Religare Invesco Tax Plan
Equity: Large Cap
- ICICI Prudential Dynamic Plan
- ICICI Prudential Top 100 Fund
- Quantum Long Term Equity Fund
Equity: Small/Mid Cap
- Birla Sun Life MNC Fund
- SBI Magnum Global Fund
- UTI MNC Fund
Hybrid: Moderate allocation
- Birla Sun Life ’95 Fund
- HDFC Balanced Fund
- SBI Magnum Balanced Fund
Hybrid: Conservative allocation
- DSP BlackRock MIP Fund
- HDFC Multiple Yield Fund – Plan 2005
- UTI – Monthly Income Scheme
Debt: Short-Term Bond
- DSP BlackRock Income Opportunities Fund
- DWS Short Maturity Fund
- Templeton India Short-Term Income Plan
Debt: Ultrashort Bond
- Birla Sun Life Savings Fund
- Canara Robeco Floating Rate
- HDFC Floating Rate Income Fund – Long Term Plan
Debt: Intermediate Bond
- BNP Paribas Flexi Debt Fund
- Reliance Dynamic Bond Fund
-
Templeton India Income Builder Account
Fund House Awards
Morningstar Fund House 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.
- Morningstar Best Equity Fund House
- Morningstar Best Debt Fund House
- Morningstar Best Multi-Asset Fund House
The Morningstar Fund Awards, hosted in 25 countries, is based on a globally-consistent, critically-acclaimed methodology that distinguishes it from the crowd. To read the detailed fund methodology document click here.
