Rating Methodology
We rate Indian mutual funds across 38 categories using a 3-factor scoring system, normalized within each category. Ratings are recalculated nightly from live NAV data.
The Four Ratings
Funds are ranked within each category by a composite score, then assigned a rating based on percentile.
| Rating | Percentile | What it means |
|---|---|---|
| In-form | Top 25% | Significantly outperforming category avg, generating strong alpha |
| On-track | 50–75% | Performing in line with or slightly above category avg |
| Off-track | 25–50% | Slightly underperforming category avg |
| Out-of-form | Bottom 25% | Significantly underperforming — review your allocation |
The 3-Factor Score
Each fund is scored on three dimensions, then combined into a weighted composite:
| Factor | Weight | What it measures |
|---|---|---|
| Consistency | 40% | Rolling returns over 3–10 year windows. Rewards funds that perform well across multiple time horizons, not just recently. |
| Volatility | 20% | Annualized standard deviation of daily returns. Lower volatility = better score (risk-adjusted view). |
| Recency | 40% | Short-term momentum (1, 3, and 6-month returns). Captures funds that are picking up steam right now. |
Eligibility & Caveats
Funds must meet minimum criteria to be rated:
- At least 3 years of NAV history
- Direct Plan, Growth option (not Regular, not Dividend)
- Category must have ≥5 eligible funds (else no rating assigned)
Important: Past performance is not a guarantee of future returns. Ratings are based on historical data and category-relative performance — they do not constitute investment advice. Always consult a SEBI-registered advisor before investing.
Data Source
NAV data is sourced from MFAPI.in, which mirrors AMFI's official daily NAV publication. Our pipeline refreshes every night via APScheduler.