How does Qonfido build a comprehensive Mutual Fund Rating system?

The Challenge for Investors

India has thousands of domestic Equity Mutual Funds. More choice sounds good, but it creates a real problem: how do you know which ones are actually good? More importantly, how do you figure out which fund aligns with your goals?

You could look at last year's returns, which is what most investors look at. But that's like choosing a restaurant based on one great meal. What matters is consistent, reliable performance over time.

That's where Qonfido comes into the picture.

What makes Qonfido different?

We don't rank funds like traditional rating agencies do. We don't just show you which funds had the best past returns. Instead, we ask a simple question: would we invest our own money in this fund?

If the answer is no, we don't recommend it. That's it.

Here's what guides our processes:

We believe in:

• Real, lasting performance over flashy short-term wins
• Funds that don't bet everything on one sector or trend
• Fund managers with proven experience and track records
• Being honest about what works and what doesn't

We stay away from:

• Funds with unpredictable, jumpy performance
• Funds that concentrate too much on narrow thematic ideas
• Any recommendation driven by commissions or conflicts

How does the Qonfido rating system work?

Every fund we review gets placed into one of four tiers within its category. Think of these as quality bands:

You might wonder why we compare only within these categories.

A Large Cap fund and a Small Cap fund have completely different risk levels. Comparing them is like comparing apples and oranges. We rate each fund only against similar funds.

How do we actually rate the funds?

Our ratings start with 5 years of real performance data.

We look at:

• Risk-adjusted returns: Did the fund earn good returns without taking on wild risk?
• Beat the benchmark: Did the fund manager add real skill or just ride market trends?
• Downside protection: How does the fund behave when markets fall?
• Consistency: Does the fund perform steadily, or does it jump around?

We don't rely on one number. We look through multiple angles to understand what the fund actually did and how it did it.

The Human Side (Coming Soon)

Numbers tell most of the story, but not all of it. We're adding a qualitative review that looks at:

• The fund manager: How long have they managed this fund? How did they perform in different market cycles?
• The fund company: Does the AMC operate with integrity? Are they focused on investors?
• The strategy: Can this fund's approach work reliably, or does it depend on lucky timing?
• Our conviction: Based on everything, would we actually put our own money in this fund?

How can you use these ratings for investing?

Think of our tiers as your starting point, not your final answer. Here's what they actually mean:

• Premier doesn't mean perfect; it means the best quality in that category
• Watch doesn't mean avoid; it means check twice before investing
• Ratings change over time; what's Premier today might shift as performance evolves
• Your situation matters most; your time horizon, goals, and comfort with risk make the final call

Use Qonfido to navigate the options. Then make the choice that fits your life. Start building wealth that lasts.

Why does this matter?

Traditional rating services show you what performed best in the past. We show you what we'd actually invest in—the funds with sustainable quality and consistent skill.

Here’s what we promise

We're building the financial co-pilot we wish we'd had when we started investing. Our ratings will keep getting better as we add deeper analysis, personalized guidance, and tools to manage your portfolio.

But this won't change: we recommend only what we'd invest in ourselves.

Qonfido — Your Personal Co-Pilot for Money

Simple. Personalized. Trustworthy.