Note for clients · November 2026
Our fund ratings changed this month
If a fund you hold now shows a lower rating, there is nothing you need to do today. Here is what changed and why.
What changed
We tested about 40 ways of rating equity funds on eleven years of real data, with the same code that rates funds on this site, and kept the one whose top-rated funds most often went on to beat their index. Ratings are now set by score: A+ at 75 out of 100 or more, A at 65 or more, so a category can have several A+ funds, or none in a given month.
Why some well-known funds moved down
The ratings favour funds that have been ahead of their index in recent months and that keep up when the market rises. Several large, long-established funds have trailed their index lately, so they rank lower for now. A lower rating describes the recent record against the index. It is not a view on the fund house, and ratings change month to month.
If you hold a fund now rated B or C
- No action is needed today. Under our review rule a fund comes up for review only after it has been rated below A for 12 months, by when the exit load has ended in almost every equity fund.
- For ELSS funds, a review applies only after the 3-year lock-in.
- Before any switch we weigh the tax on your gain and your own plan. We go through this with you in your review.
New investments
Under the same rule, new money in a category goes to the funds rated A+ in that category at the time.
What the ratings cannot do
Ratings describe the past and are not a forecast. In years when large companies lead the market, funds rated on recent strength have done no better than the rest. We publish these limits, and the full test results, on the Method page.
Aeterna Wealth is an AMFI-registered mutual fund distributor (ARN-317889), not an investment adviser. We earn commission from fund houses on Regular plans. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.