• SENSEX
    NIFTY 50
Personal Finance

How reliable are mutual fund ratings

Updated : March 23, 2019 12:05 PM IST

The probability that a randomly selected five-star fund will outperform a randomly selected four-star fund is only 50.6 percent: study
If ratings do not predict future returns, and rating agencies universally disclaim that ratings are not predictive, then how did they come to be so important in the Mutual Fund ecosystem?
The answer lies in human psychology. No one ever fired an advisor or a broker for recommending a 5-star fund.
How reliable are mutual fund ratings
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more

You May Also Like

Live TV