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CRISIL Mutual Fund Ranking

Brief Methodology

CRISIL Mutual Fund Rankingis the relative performance ranking of mutual fund schemes withinthe peer group. The basic eligibility criteria for inclusion in the ranking universe are two-yearsNAV history (one-year for Liquid, Ultra Short Term Debt, Index and Debt-Short funds and five year inclusion for the Consistent Performers), assets under management in excess of category cut-off limits and complete portfolio disclosure. The ranking is done based on the followingparameters:

Superior Return ScoreThe Superior Return Score (SRS) is the relative measure of the return and the risk for the

schemes compared to their peer group. It is computed for Equity Oriented Categories, EquityLinked Saving Schemes (ELSS), Debt, Balance, Monthly Income Plan (Aggressive &Conservative) and Gilt categories for a two - year period. The weightages for the four six-monthly periods starting from the latest are 32.5%. 27.5%, 22.5% and 17.5% respectively. In caseof the Consistent Mutual Fund Performers for Equity, Balanced and Debt categories, the SRS iscalculated for a period of five years, with separate one year periods weighted differentially withthe most recent period having the highest weightage.

Mean Return and VolatilityMean Return and Volatility are considered separately in case of Liquid, Ultra Short Term Debtand Debt-Short term schemes for a one - year period. Mean return is average of daily return on

fund NAV for the latest one-year period and the Volatility is the standard deviation of thesereturns. The weightages for the four quarterly periods starting from the latest are 32.5%. 27.5%,22.5% and 17.5% respectively. In case of the Consistent Mutual Fund Performers for the Liquidcategory, Mean Return and Volatility are calculated for a period of five years, with separate oneyear periods weighted differentially with the most recent period having the highest weightage.

Portfolio Concentration Analysis

Concentration measures the risk arising out of improper diversification. Diversity Score is usedas the parameter to measure Industry concentration and Company concentration for equitysecurities. In case of Debt papers, the industry concentration is analyzed only for any / overexposure in sensitive sectors which is arrived at based on CRISILs assessment of the prospects

for various sectors and Company concentration will have an individual issuer specific limit of10.0%

Liquidity Analysis

It measures the ease with which the portfolio can be liquidated. In case of Equities, liquidity iscalculated by taking the average of last 3 months impact cost published by stock exchanges. Giltliquidity is measured by analysing the market turnover, days traded and size of trade in anysecurity for a three months period for that security. Corporate Debt Liquidity is computed byclassifying each security into 3 categories - Liquid, Semi Liquid and Illiquid and then evaluatinga funds exposure to each such category.

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Asset Quality

Asset Quality measures the probability of default by the issuer of a debt security to honour the

debt obligation in time. CRISIL penalizes lower rated securities to a higher level in its analysis.

Modified Maturity /Average MaturityModified duration /Average Maturity are considered across all debt categories except liquid tocapture the interest rate risk of the portfolio. Lower the value better it is.

Downside Risk Probability (DRP)DRP measures the probability of the investment getting lower returns than short tenor risk freesecurities. It measured by assessing the number of times a funds return falls below the risk freereturn over the period of analysis. The risk free return is taken as the 91-day T-Bill yield overthe period.

Asset SizeIt is considered only for Ultra Short Term Debt and Liquid categories to take into account theeffect of large fund flows on the funds performance and ability of the funds to manage suchflows optimally. Higher the asset size better it is.

Tracking ErrorThis is used only for Index funds. The tracking error is an estimation of the variability in afunds performance vis--vis the index that it tracks. Lower the tracking error better it is.

Historic CRISIL Mutual Fund PerformanceHistoric CRISIL Mutual Fund performance is considered only for the Consistent category.

Quarterly mutual fund ranks during the five year period of analysis are weighted with separateone year periods weighted differentially with the most recent period having the highestweightage.

CRISIL Mutual Fund Ranking Category Definitions

Category Interpretation

CRISIL Fund Rank 1Very Good performance in the category (Top 10 percentile ofuniverse)*

CRISIL Fund Rank 2 Good performance in the category

CRISIL Fund Rank 3 Average performance in the category

CRISIL Fund Rank 4 Below average performance in the category

CRISIL Fund Rank 5 Relatively weak performance in the category

Detailed methodology available on our website www.crisil.com* If the top 10 percentile figure is not an integer, the same is rounded off to the next integer. The

same approach is adopted for CRISIL Fund Rank 2 (11th to 30th percentile), CRISIL Fund Rank 5 (last91st to 100th percentile) and CRISIL Fund Rank 4 (71 stto 90th percentile) clusters. The residual schemesin the universe are placed in the CRISIL Fund Rank 3 cluster.