Looking To Invest In SIPs? Here Are Some Of The Places You Can Look For Ratings

Many a time investors ask the same old question: Which is the best SIP to Invest in? The answer is that nobody would know it. Mutual Fund investing is always tricky and mutual fund units that have generated returns in the past, may not be able to necessarily do so in the future.

Here are some of the places that you could look to for mutual fund ratings?

There are a few reputed, agencies or firms that rate mutual fund units, means essentially SIPs as well. Some of these are mentioned below. Now, we wish to inform readers that a No 1 rating or a 5-star rating may not guarantee the future performance. Yes, they could be a good indicator to consider for the purpose of the investment.

Morningstar

Morningstar is a Chicago-based investment research firm that compiles and analyzes fund, stock, and general market data. In India it also does mutual fund ratings, in which 5-star is the highest ratings that is accorded.

Some of the largecap funds, where Morningstar has accorded a 5-star rating, includes names like Canara Robeco Bluechip Equity Fund, Axis Bluechip Fund etc. So, you can look to it before you invest in SIPs, but, as indicated earlier the best rated funds do not guarantee the best returns.

Value Research

Value Research, apart from other things also rates equity mutual funds and debt mutual funds. It has a long track record of rating funds. So, if you are looking to invest this could also be a good place to search for the fund ratings and all information needed on the fund. Value Research also provides ratings in the form of a star, including 2, 3, 4 and 5-star.

CRISIL

Crisil as we all know is the top credit rating agency in the country. However, unlike the other two it provides ratings based on rank 1, rank 2 etc. Rank 1 is the highest ranking for the mutual fund. So, next time, you want to invest in SIPs look at the ratings and the rankings of all these institutions. If all of them have a top rating, then probably the SIP could be a good bet.

However, it is better to understand the risks before investing in equity mutual funds and ratings does not guarantee returns and safety.

We suggest that investors also learn to do a little of their own research before investing.