Financial Daily from THE HINDU group of publications
Tuesday, Apr 13, 2004
Financial Daily from THE HINDU group of publications Tuesday, Apr 13, 2004 |
||
|
|
||
|
Markets
-
Mutual Funds Volatility ratings: Fitch in talks with AMCs Veena Venugopal
Mumbai , April 12 FITCH Ratings is in talks with various asset management companies to offer the volatility rating for the liquid and income funds. The volatility rating assesses the range of volatility in the net asset value of funds based on the quality of portfolio assets, investment practices, liquidity and management controls of the fund, according to Mr Sudhir N Variyar Director, Fitch Ratings India Private Ltd. Fitch has assigned Benchmark Mutual Fund's Liquid BeEs a `V1+' rating. Fitch would monitor, on a periodic basis, through the portfolio and valuation reports the ability of the fund to remain within the guidelines under which it was assigned `V1+' rating, he said. "We are talking to larger fund houses and are in various stages of discussion about assigning the volatility ratings to their funds - primarily those who have their portfolios in debt and money market instruments," said Mr Amit Tandon, Managing Director, Fitch Ratings India. Currently, most mutual funds declare the ratings of the instruments that they have invested in, but since the tenures on these vary, it might not be a reflection of the quality of the fund itself. The volatility index should be an indicator of the "safety" of the fund and an important parameter to be considered while making investment decisions, clarifies Mr Variyar. The analysis of volatility would take into account factors such as credit quality, maturity structure and liquidity management of the portfolio. "The requirement for this should be investor led. Once that happens, most fund houses would necessarily get themselves rated," said Mr Variyar.
More Stories on : Mutual Funds | Asset Management Companies | Credit Rating
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|