The annual Morningstar India Fund Awards recognizes funds that have added the most value for investors within the context of their relevant peer group in 2022 and over longer time periods. The methodology emphasizes the 1-year period, but funds must also have delivered strong 3-year and 5-year returns after adjusting for risk within the awards peer groups in order to obtain an award.
Further, they must have been at least in the top half of their respective peer groups in at least three of the past five calendar years.
Best Large Cap Equity Fund
Best Mid Cap Equity Fund
Best Short Duration Fund
Best Medium to Long Duration Fund
Exclusions:
- Insurance funds
- Closed-end funds
- Funds in unrated Morningstar categories
Each fund in a relevant grouping will be scored as follows:
Return Score = 80% of total score
One year: 30% of total score, based on 1-year return percentile rank in Morningstar Category
Three- and five-year: 50% of total score, of which:
- 40%: 3-year return percentile rank in Morningstar Category
- 60%: 5-year return percentile rank in Morningstar Category
(Note: 3-year and 5-year scores are scaled to represent 40% and 60% of the long-term portion of the return score, respectively. The 3-year return score constitutes 20% of the total score, and the 5-year return score constitutes 30% of the total score.)
Risk Score: 20% of total score
Of the risk score:
- 40%: 3-year Morningstar Risk percentile rank in Morningstar Category
- 60%: 5-year Morningstar Risk percentile rank in Morningstar Category
(Note: 3- and 5-year scores are scaled to represent 40% and 60% of the total risk score, respectively. The 3-year risk score constitutes 8% of the total score, and the five-year risk score constitutes 12% of the total score.)
Based on above weights, the effective weight of each year in the calculation is as follows, including both risk and return (figures are rounded to nearest whole number):
- Past one year: 48%
- Second year out: 18%
- Third year out: 18%
- Fourth year out: 8%
- Fifth year out: 8%
The weights are designed to place due emphasis on the most recent year given that the awards are annual in nature, but are also meant to favour those funds that have delivered risk-adjusted outperformance on a sustained basis over the longer term.
Based on the above calculations, the 10 funds with the lowest scores in each Morningstar Awards Category will be reviewed by Morningstar’s qualitative research analysts in that market.
The analysts will complete the following checks:
- Funds that are deemed inaccessible to local market investors will be excluded.
- Any fund that is deemed to have deviated from its stated mandate will be removed from consideration.
Any fund that has not outperformed its Morningstar category median in at least three of the past five calendar years will be removed from consideration unless Morningstar's qualitative analysts believe a fund has exceptional merit that the criteria fails to capture.
The winners of the Morningstar Fund Awards, India, will be declared on March 16, 2023.
The Best Fund House Nominees