The latest CRISP Mutual Funds Scorecard has highlighted the outperformance of mutual funds with high exposure to value and momentum styles over the past five years. This quarterly evaluation, created by Share.Market, assesses mutual funds across various categories, offering insights into performance, risk, and investment style. The scorecard underscores the consistent success of investment strategies focusing on value and momentum factors, which have generally outperformed other styles.
In the Large & Midcap Funds category, 56% of funds prioritising the value style have demonstrated high consistency, while 22% showed strong momentum. Similarly, the Equity Linked Savings Scheme (ELSS) category sees 55% of funds with high performance consistency scoring well in value style, and 45% excelling in momentum. This trend is mirrored across other categories, including flexicap and large cap, where funds with high consistency also show a preference for value and/or momentum investment styles. This alignment of investment styles with performance consistency highlights the importance of strategic fund management in achieving sustained success.
Nippon India, HDFC, ICICI Prudential, and Franklin Templeton Mutual Funds have emerged as consistent performers across these fund categories. Additionally, PPFAS Mutual Fund’s equity funds have been recognised for their consistent performance, driven by a strong focus on quality and value factors. Despite scoring high on performance consistency, Quant AMC’s funds present significantly higher risk compared to their peers, as per the findings. This suggests that while high returns are achievable, they may come with increased volatility, requiring careful consideration by investors.
Balanced strategies appear to yield positive results, as highlighted by AMCs such as ICICI Prudential, SBI, and Nippon India. These funds demonstrated strong performance consistency without leaning heavily towards a single investment style. The report suggests that balanced strategies, along with effective stock selection and asset allocation, have contributed to this success. This approach not only mitigates risk but also ensures a more stable performance trajectory over time.
The CRISP Mutual Funds Scorecard, based on Share.Market’s proprietary framework, evaluates the Consistency, Risk, and Investment Style of the Portfolio (CRISP). It goes beyond traditional metrics by combining NAV-based performance and risk assessment with historical fund portfolio analysis, providing actionable insights to empower investors in making informed fund selection decisions. This comprehensive analysis allows investors to gain a deeper understanding of fund dynamics, facilitating more strategic investment choices.
Ujjwal Jain, CEO of Share.Market, remarked on the overwhelming amount of data available to investors, which often focuses solely on historical returns or risk-adjusted ratings. Jain emphasised, “Investors today are overwhelmed with data, but much of it stops at historical returns or risk-adjusted ratings—often leaving them with limited information for investment decision making. At Share.Market, we believe investors deserve more. With our CRISP Mutual Funds Scorecard, we go beyond past performance to offer deeper, actionable insights into how their money is truly being managed. This initiative reflects our commitment to empowering investors with a clearer, more holistic view of mutual fund performance.” This commitment to transparency and detailed analysis is set to redefine how investors approach fund evaluation.
The CRISP framework aims to provide retail investors with the tools to understand the drivers of fund performance, which have been previously accessible primarily to global institutional investors. By offering advanced factor exposure analysis, Share.Market is making it easier for investors in India to make more informed decisions. This democratization of data-driven insights ensures that all investors, regardless of their experience level, have access to high-quality information to guide their investment strategies.