Value and momentum mutual funds continue to perform consistently: Report
Mutual Funds
Scorecard (second edition).
Additionally, the report highlights that a few funds with 'High' performance consistency have been outliers in terms of risk. Individual Investors tend to emphasize performance or point-to-point returns of a fund, thereby creating a portfolio with high-risk concentration.
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The scorecard revealed that among funds with 'High' performance consistency in categories such as Flexi Cap, ELSS, Focused and Aggressive Hybrid Funds, 25-30% of the funds were scored 'Too High' on Risk. Therefore, it becomes imperative for investors to consider risk as a factor along with performance consistency to build a resilient portfolio.
Many investors believe holding funds across multiple categories and AMCs provides diversification. However, a single style exposure could also lead to significant portfolio underperformance. The report highlighted three important things. Firstly, around 40% of the total AuM of funds analysed are concentrated in funds that are 'High' on the Value investment style.
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Secondly, momentum, the second most dominant investment style among funds showing high performance consistency, commands only 14% of AuM. And lastly, approximately 28% of the assets are in funds that do not follow any particular investment style, and 22% are in funds that focus on buying high-quality companies.
A smart combination of styles can help reduce volatility and ensure relatively smoother returns over time. To avoid style concentrations, the CRISP framework plays a crucial role in helping investors recognize and assess the underlying style exposures in their portfolios, the report said.
The CRISP Scorecard identified the top AMCs by performance consistency, as Nippon India, HDFC, and
ICICI Prudential
were among the most consistent performers across multiple fund categories.
Quant AMC showcased high-performance consistency across seven categories, though its funds showed significantly higher volatility, and HDFC AMC funds largely followed value style, while Nippon and ICICI Prudential had a mix of Value tilt and style-neutral funds.
Lastly,
Edelweiss
with a strong Momentum tilt, and Franklin Templeton with a preference for Value style, delivered high performance consistency across five categories each.
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The scorecard covers analysis of funds in core equity and hybrid fund categories, based on the 5-year data ending June 2025. It leverages Share.Market's in-house fund evaluation framework, CRISP, to provide a comprehensive, data-driven analysis of mutual funds, offering insights on their performance, risk, and investment style.
'With the growing adoption of mutual funds, there is a clear need for simple yet relevant insights that go beyond past returns. At Share.Market, we developed the CRISP (Consistency, Risk and Investment Style of Portfolio) framework to offer investors a more holistic view that brings together performance, relative risk, and investment style,' said Nilesh D Naik, Head of Investment Products, Share.Market (PhonePe Wealth).
'The CRISP Mutual Funds Scorecard is our way of empowering millions of investors with deeper, actionable insights on how their money is being managed. This second edition builds on that promise, and commitment guided by investor needs and driven by our belief in making data-backed investing more accessible for all,' Naik added.
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