Starting today, The Hindu BusinessLine is proud to empower its readers with one more tool to ensure that whenever they make an investment decision, they can do so based on the best and most unbiased advice that they can get.

The Business Line Portfolio Star Track Mutual Fund Ratings offer you a simple but effective tool to help you cut through the bewildering clutter of mutual fund investment schemes and zoom in on those funds and schemes which have consistently delivered the best returns to investors, over the longest period of time.

The ratings build on the strong expertise of the BusinessLine Research Bureau, whose analysts have been tracking mutual funds for more than two decades. The team has been recommending top-notch mutual funds to investors across various categories based on risk appetite and investment goals.

We have harvested our long track record in analysing mutual funds to now bring out the Star Track Mutual Fund Ratings , a first for any media organisation in the country. The ratings will appear every Monday in the Portfolio section.

Our ratings are based on an in-depth analysis of the funds’ historical performance measured both in terms of return and risk. The algorithm is far superior to those existing in the market as we analyse very long-term performances of funds across market cycles to arrive at the ratings.

The returns and risk of the schemes are measured using rolling returns and Sortino ratios, respectively. We have considered one-year, three-year and five-year rolling returns for a total of 7-year NAV history for equity and hybrid funds. For debt-oriented funds, we have considered one-year, two-year and three-year rolling returns for a total of 5-year NAV history. The final score is used to rate funds within each category.

The funds with the highest scores are assigned five-star rating while the funds with the lowest scores are assigned one-star rating.

We are sure our readers will make full use of these ratings to ensure that their hard-earned money is working hard for them in the market.

Editor

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