How Qonfido Rates
Mutual Funds
Built by investors with decades of combined experience. Powered by AI on decades of Indian mutual fund history — so you invest in what we would actually invest in.
Our Investment Philosophy
"We recommend only what we would invest in"
We believe in
Sustained Performance
Consistent returns across market cycles, not one-off peaks.
True Diversification
Broad exposure across sectors and market caps.
Experienced Managers
Fund managers with proven long track records.
Honest Analysis
No commission-driven bias. No product agenda.
We avoid
Volatile Short-term Returns
Funds that spike once and mean-revert sharply.
Sector Concentration
Over-exposure to a single sector or theme.
Narrow Thematic Funds
Fads and story-driven launches with low history.
Commission-Driven Selection
High-commission products pushed for distributor gain.
Experience Meets Evidence
Practitioner judgment sets the bar. AI enforces it consistently across decades of fund history.
Human experience
What we measure
- Category-specific criteria shaped by decades in mutual funds, research, and advisory
- Clear exclusions: hype themes, style drift, and funds we would not own
- Tier philosophy aligned with "would we invest?" — not past-return league tables
AI analysis
How we measure it
- 20+ years of NAV, benchmark, and peer data processed consistently
- Rolling windows, drawdown stats, and percentile ranks within each category
- Monthly refresh — every eligible scheme scored the same way, without bias
Combined rating → Human-defined framework plus AI-driven scoring, refreshed monthly within each category.
Rating Tiers
Each fund category is rated independently. Funds compete only against their direct category peers, ensuring fair comparison.
Funds we'd confidently invest in ourselves. Strong returns, controlled risk, and steady performance.
Top 15% of category
Solid performers with good returns and consistent behaviour. Suitable for many investor situations.
Next 35% of category
Middle-of-the-road funds that are acceptable but not where we'd focus new money.
Next 35% of category
Funds underperforming their peers. Worth a second look before investing.
Bottom 15% of category
How the Score is Built
Four stages — from practitioner-defined rules to your fund's tier label.
Investment Framework
Experts with decades of industry experience define what to measure, what to avoid, and how categories are compared.
Raw Data Collection
20+ years of NAV history, benchmark returns, category peers, drawdown stats.
Composite Score
Weighted scoring across 10+ quantitative pillars, varying by category.
Tier Assignment
Category-relative percentile ranking maps score to Premier / Select / Standard / Watch.
Key Scoring Pillars
All scoring uses a rolling 5-year window. Each pillar is weighted to reward consistent, risk-adjusted outcomes.
Risk-Adjusted Returns
Return earned per unit of risk. Rewards funds that generate strong returns without excessive volatility.
Benchmark Outperformance
Consistent excess return over the category benchmark.
Downside Protection
How well the fund preserves capital during market corrections.
Performance Consistency
Consistent performance across different market cycles and periods.
5-Year Rolling Window
All quantitative metrics are calculated over a 5-year rolling window, updated monthly as new NAV data arrives.
Why This Matters
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.
| Traditional Rating Approach | Qonfido's Approach |
|---|---|
| Rank by past returns | Evaluate for real quality |
| One standard for everyone | Building personalized guidance |
| Hidden methodology | Clear, transparent process |
| Recommend what ranks high | Recommend what we'd invest in |
| Numbers only | 60+ years of practitioner insight defines the framework; AI applies it on 20+ years of data |
Beyond the Numbers
Manager Tenure
Years of experience at the fund and with this AMC. Continuity matters.
AMC Integrity
Regulatory track record, governance practices, and investor-first culture.
Strategy Reliability
Does the fund stick to its stated mandate? Style drift is penalised.
Conviction Level
Portfolio concentration vs benchmark — high active share is rewarded.
Understanding Fund Ratings in India
Mutual fund ratings are a critical tool for Indian investors navigating a diverse landscape of over 2,000 equity, debt, and hybrid schemes. Unlike fixed deposits or direct stock picking, mutual funds offer professional management and diversification—but choosing the right fund requires understanding how different rating methodologies work and what makes a quality fund sustainable.
How to Use Qonfido Ratings
- 1.Start with PREMIER tier funds as your core holdings—these represent the top 15% of their category with consistent, risk-adjusted performance.
- 2.Use SELECT tier funds for satellite positions or category diversification—solid performers that suit most investor situations.
- 3.Avoid WATCH tier funds unless you have a specific reason—they're underperforming peers and not where we'd invest new money.
- 4.Compare ratings across categories (Equity, Debt, Gold) to build a balanced portfolio aligned with your horizon and risk appetite.
Common Questions
Do humans or algorithms assign the rating?
Both, in different roles. Industry veterans shaped what we measure and how we compare funds within each category (60+ years of experience). Algorithms score every eligible scheme on 20+ years of data the same way, every month — no commission bias, no manual cherry-picking.
How many years of data do you use in assessing a fund's rating?
We use 20+ years of data to assess a fund's rating. This spans multiple market cycles (bull markets, corrections, crises), revealing how a fund performs in different environments. Shorter periods can be misleading—a fund might look good in a bull market but fold during corrections.
What if a fund drops from Premier to Select?
Performance changes as new data arrives monthly. A rating downgrade signals weakening risk-adjusted returns or consistency—an opportunity to review your holdings and rebalance if needed.
Are Qonfido ratings the only factor in my decision?
No. Use ratings alongside your investment goals, time horizon, and tax situation. A Premier fund might not suit your specific needs if your horizon is very short or your risk tolerance is low.
Key Takeaway
Qonfido ratings cut through noise by combining practitioner judgment (60+ years of industry experience) with AI analysis on 20+ years of mutual fund data. We focus on funds that generate strong, sustainable returns with controlled risk — funds we'd actually invest in ourselves, with no commission bias and no hype. Use ratings as one of several decision tools to build a portfolio aligned with your goals.