Share.Market’s second CRISP Mutual Funds Scorecard emphasises on investment style diversification & risk over returns

Share.Market (PhonePe Wealth) today released the second edition of its CRISP Mutual Funds Scorecard for the quarter ended June 2025. The scorecard covers analysis of funds in core equity and hybrid fund categories, based on the five-year data ending June 2025. It leverages Share.Market’s in-house fund evaluation framework, CRISP, to provide a comprehensive, data-driven analysis of mutual funds, offering insights on their performance, risk, and investment style.

Sharing his views on the scorecard, Nilesh D Naik, Head of Investment Products, Share.Market (PhonePe Wealth), said, “With the growing adoption of mutual funds there is a clear need for simple yet relevant insights that go beyond past returns. At Share.Market, we developed the CRISP (Consistency, Risk and Investment Style of Portfolio) framework to offer investors a more holistic view that brings together performance, relative risk, and investment style. The CRISP Mutual Funds Scorecard is our way of empowering millions of investors with deeper, actionable insights on how their money is being managed. This second edition builds on that promise and commitment, guided by investor needs and driven by our belief in making data-backed investing more accessible for all.”

The second edition of the report highlighted that funds with a value and momentum tilt continue to perform consistently. In categories such as Large Cap, Midcap, ELSS, Contra/Value, Large & Midcap, and Aggressive Hybrid, funds favouring the value investment style have emerged as consistent performers while in Small Cap and Flexi Cap categories, funds high on the momentum style were among the top performers.

Additionally, the report highlights that a few funds with ‘high’ performance consistency have been outliers in terms of risk. Individual investors tend to emphasise on performance or point-to-point returns of a fund, thereby creating a portfolio with high-risk concentration. The scorecard revealed that among funds with ‘high’ performance consistency in categories such as Flexi Cap, ELSS, Focused and Aggressive Hybrid Funds, 25-30 per cent of the funds were scored ‘too high’ on risk. Therefore, it becomes imperative for investors to consider risk as a factor along with performance consistency to build a resilient portfolio.

Another challenge spotlighted in the report is that many investors believe holding funds across multiple categories and AMCs provides diversification. However, a single style exposure could also lead to significant portfolio underperformance. The CRISP scorecard revealed that:

• 40% of the total AuM of funds analysed are concentrated in funds that are ‘High’ on the value investment style.
• Momentum, the second most dominant investment style among funds showing high performance consistency commands only around 14 per cent of AuM.
• Approximately 28 per cent of the assets are in funds that do not follow any particular investment style, and around 22 per cent in funds that focus on buying high-quality companies.

 

A smart combination of styles can help reduce volatility and ensure relatively smoother returns over time. To avoid style concentrations, the CRISP framework plays a crucial role in helping investors recognize and assess the underlying style exposures in their portfolios.

The CRISP scorecard identified the top AMCs by performance consistency as:

• Nippon India, HDFC, and ICICI Prudential were among the most consistent performers across multiple fund categories.
• Quant AMC showcased high performance consistency across seven categories, though its funds showed significantly higher volatility.
• HDFC AMC funds largely followed the value style while Nippon and ICICI Prudential had a mix of value-tilt and style-neutral funds.
• Edelweiss with a strong momentum tilt, and Franklin Templeton with a preference for the value style, delivered high performance consistency across five categories each.

The second edition of the CRISP Mutual Fund Scorecard underscores the importance of analysing both a fund’s underlying risk, not just its performance, and its investment style for true portfolio diversification. For investors, these insights provide a significant opportunity to rethink portfolio diversification across various parameters.

For more information, download the report from here.

About PhonePe Wealth Broking:

PhonePe Wealth Broking Private Limited, incorporated in April 2021 is a subsidiary of PhonePe Limited (Previously known as PhonePe Pvt Ltd) and is registered with NSE and BSE as a Stock Broker, with CDSL as a Depository Participant, with SEBI as a Research Analyst and with AMFI as a Mutual Fund distributor. Launched in August 2023, Share.Market, a brand of PhonePe Wealth Broking and affiliates, is a wealth and investment platform (app & website), catering to investors and traders of all expertise levels. The platform offers a wide range of investment products, including Stocks, Mutual Funds, WealthBaskets, and more.

For more details, contact: media@share.market

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Registration granted by SEBI, enlistment as Research Analyst with Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

PhonePe Wealth Broking Private Limited is a member of NSE (Member ID 90226) & BSE (Member ID 6756) with SEBI Regn. No.: INZ000302639, Depository Participant of CDSL Depository with SEBI Regn. No.: IN-DP-696-2022, Research Analyst– INH000013387 and ARN- 187821 (Mutual Fund distributor), CIN U65990KA2021PTC146954.

Kindly refer to the website https://share.market for more details.

 

 

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