Glossary· Ratings & classification
What is Star rating?
Our own 1–5 stars: 60% performance, 15% risk, 10% cost, 15% downside.
Each component is a percentile against the fund's own peer group, combined into a 0–100 score and banded into stars. Some track record is mandatory: a fund with three years is rated on them, a younger one on its 1-year return and marked as such, and a fund with less than a year is not rated. It is computed here from public data, not bought from a rating agency, and the full working is on the methodology page.
For the formula and the constants behind this figure, see Methodology.
Guides that use Star rating
4 guides put this term to work.
- Handling underperformance: when to stay and when to exitSeparating what changed about the fund from what changed about the market: mandate drift, manager exits, and the review habit that survives a bad quarter.
- Recency bias: why investors keep buying at the topThe industry's entire product cycle is built on it — themes launched after they run, tables ranked by past return, money arriving at the peak.
- Herd mentality: why buying what everyone else owns failsSocial proof works everywhere except markets, where the crowd's buying has already moved the price — and where crowding turns a decline into a liquidity event.
- Anatomy of a legendary fund run — and why it endedThe five phases every great run follows, why most investors arrive at phase four, and how to separate skill from a style tailwind using numbers, not the story.
More on ratings & classification
How funds are grouped and scored here.
- Peer group
- The funds a rating or rank is measured against — same sub-category, plan and option.
- Category & sub-category
- SEBI's scheme classification — what the fund is allowed to hold.