How PaisaSmart rates mutual funds
Our rating methodology — what we measure, how often we update it, and what we deliberately ignore.
Our approach
PaisaSmart's research methodology has been developed through more than 30 years of experience investing in equity markets. It is designed to produce reliable, unbiased and clear investment insights.
What we evaluate
We evaluate more than 10 years of data for every mutual fund scheme, analysing portfolio composition and risk and return ratios through a proprietary recommendation algorithm. This lets us assess funds at a fundamental level and understand the impact of a fund manager's choices across asset selection, sectoral allocation and instrument selection — and how those choices create outperformance against the fund's benchmark.
Expert review
Our mutual fund experts then evaluate each AMC's investment philosophy and track record to arrive at a final rating out of 5 stars.
How often ratings update
Ratings are recomputed monthly, at the start of each month. Articles that reference ratings state the month the rating belongs to.
What we do not consider
We do not consider commissions, transaction charges, or any commercial consideration when defining our ratings.
Where our data comes from
Fund data — including NAV, AUM, returns and expense ratios — is sourced from Value Research. Our ratings are our own, computed from that data. Our mutual fund knowledge base is compiled from NISM certification workbooks, AMFI and SEBI publications, and PaisaSmart's own research.
Who we are
PaisaSmart is operated by Elixir Equities Pvt. Ltd., a SEBI registered research analyst (registration number INA000004787). Registration granted by SEBI and certification from NISM in no way guarantees performance or assures returns.