The winners of the annual Morningstar Fund Awards, India, will be declared on March 16, 2023.
Nominees in alphabetical order.
Best Large Cap Equity Fund
Best Mid Cap Equity Fund
Best Short Duration Fund
Best Medium to Long Duration Fund
Morningstar Best Debt Fund House Award
(Fund houses with at least 5 fixed-interest funds with Morningstar Ratings available for sale in a given market are eligible).
- Aditya Birla Sun Life AMC Ltd.
- ICICI Prudential AMC Ltd.
- Kotak Mahindra AMC Ltd.
Morningstar Best Equity Fund House Award
(Fund houses with at least 5 equity funds with Morningstar Ratings available for sale in a given market are eligible).
- Invesco Asset Management (India) Private Ltd.
- Kotak Mahindra AMC Ltd.
- SBI Funds Management Ltd.
Morningstar Best Overall Fund House Award
(Fund houses with at least 5 equity funds and 5 fixed-interest funds with Morningstar Ratings available for sale in a given market are eligible).
- ICICI Prudential AMC Ltd.
- Kotak Mahindra AMC Ltd.
- SBI Funds Management Ltd.
BEST FUND AWARDS
The 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.
Insurance funds, closed-end funds and funds in unrated Morningstar categories were exempted.
Each fund in a relevant grouping were 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 were reviewed by Morningstar’s qualitative research analysts in that market. The analysts completed 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.
BEST FUND HOUSE AWARDS
The Morningstar Fund House Awards recognise those fund families that have delivered sustained outperformance on a risk-adjusted basis across their fund line-ups.
For each award, Morningstar calculated House Scores using the following methodology:
- Only funds with 5-year Morningstar Ratings are included. Money market funds are excluded.
- Determine the 5-year Morningstar Risk-Adjusted Return (MRAR) for each share class of each fund run by a given house, and the percentile rank of that return score within its Morningstar Category.
- Determine the average percentile rank of each fund's MRAR by taking the mean MRAR percentile rank of all its classes.
- Determine the mean percentile rank of each fund house's MRAR by taking the mean of its funds' MRAR percentile ranks (the lower a group's mean percentile rank, the better its performance).
Morningstar India’s qualitative analysts reviewed the scoring results and had the option to disqualify a firm if there are extenuating circumstances. These might include (but are not limited to) the loss of a group of talented managers, substantial increases to fund expenses, non-availability of the house's funds to retail investors in the relevant market, or being taken over by another group. Each disqualification must be approved by the heads of Morningstar’s European Research. The review is intended to prevent giving an award on the basis of performance that we believe is unlikely to be repeated due to structural factors.
The remaining fund firms with the lowest score in each of the above groups will receive the relevant Morningstar Fund House Award.
There will only be one award in each of the categories listed above. If there are fewer than three eligible groups in any of these categories, no award will be made in that category.
The winners of the Morningstar Fund Awards, India, will be declared on March 16, 2023.