22 hrs ago
Five Mutual Funds Earn Five-Star Ratings Across Equity Categories
Five mutual funds received the highest five-star rating in an analysis by Value Research.
HSBC Midcap Fund had the best three-year and five-year SIP results among the funds discussed.
Invesco India Large & MidCap Fund and Invesco India Mid Cap Fund also performed strongly.
Axis Multicap Fund led the three-year results in its category.
ITI Small Cap Fund led the five-year results and had high alpha.
Alpha measures how much a fund beats its comparison benchmark after considering its performance.
The ratings consider both returns and risk, not returns alone.
A five-star rating is not a guarantee, so investors should also consider their goals, time horizon, budget, and risk tolerance.
HSBC Midcap Fund led three-year and five-year SIP returns at 21.2% and 23.6%, respectively, with 7.7% alpha.
Invesco India Large & MidCap Fund ranked first over three years at 17.2% and second over five years at 20.7%.
Invesco India Mid Cap Fund delivered 18.9% and 22.7% three-year and five-year SIP returns, and ranked first over 10 years.
Axis Multicap Fund ranked first for three-year SIP returns at 15.2%, while ITI Small Cap Fund led five-year returns at 24.6%.
The ratings combine returns and risk, weighting five-year performance at 60% and three-year performance at 40%; two other funds rose to four stars.
- Who
- HSBC Midcap Fund, Invesco India Large & MidCap Fund, Invesco India Mid Cap Fund, Axis Multicap Fund, and ITI Small Cap Fund received five-star ratings in the analysis.
- What
- The funds were assessed on SIP returns, alpha, benchmark performance, volatility, and a quantitative five-star rating system.
- Where
- The analysis concerns Indian mutual funds and uses benchmarks including the BSE SmallCap 250 TRI and VR Multicap TRI.
- When
- The report covers three-year, five-year, and 10-year performance periods; it says some funds began outperforming in the current year and that HSBC pulled ahead from April 2026.
- Why
- The rating is intended to combine investment returns and risk into a single quantitative measure.
Key facts
- Top three-year SIP return
- HSBC Midcap Fund: 21.2%
- Top five-year SIP return
- HSBC Midcap Fund: 23.6%
- Highest stated alpha
- ITI Small Cap Fund: 10.8%; HSBC Midcap Fund recorded 7.7%
- Invesco India Mid Cap Fund
- 18.9% three-year SIP return, 22.7% five-year SIP return, and first place over 10 years
- Rating methodology
- Five-year performance carries 60% weight and three-year performance carries 40% for equity and hybrid funds
- Other rating changes
- Edelweiss ELSS Tax Saver Fund and HDFC Value Fund were upgraded from three stars to four stars
- Investor caution
- The five-star rating is not a standalone investment recommendation
Sources
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