How-to How to PPFAS Value Research Morningstar CRISIL

How to read PPFAS scheme rating reports

From WebNotes, a public knowledge base. Last updated 17 May 2026. Reading time ~6 min. Level: Beginner.

Key facts

Primary rating sources	Value Research Online, Morningstar India, CRISIL Risk and Return Analysis, and AMFI category disclosures
Rating type	Quantitative star ratings (1 to 5 stars) and qualitative analyst commentary
Methodology basis	Risk-adjusted returns (Sharpe, Sortino), peer-comparison percentile ranks, downside protection, fund manager continuity
Update frequency	Monthly (Value Research, Morningstar) or quarterly (CRISIL)

Procedure

Visit the rating-provider websiteOpen valueresearchonline.com, morningstar.in, or crisil.com (research division). All three have public-access scheme pages.
Search for the PPFAS scheme of interestUse the search bar to find Parag Parikh Flexi Cap Fund, Parag Parikh ELSS Tax Saver Fund, or other PPFAS schemes.
Locate the rating summaryEach scheme page shows the current star rating, category rank, peer comparison, and risk-return metrics.
Read the rating methodology disclosureEach provider explains its methodology. Understand whether the rating is purely quantitative or includes qualitative judgement.
Compare ratings across providersValue Research, Morningstar, and CRISIL use different methodologies. PPFCF may rate differently across providers; understand the basis.
Review the peer-comparison dataThe rating page typically shows peer comparison: PPFAS scheme versus category average and top performers.
Read the analyst's qualitative commentaryValue Research and Morningstar provide narrative analyst views. Read these for context.
Cross-check with the PPFAS factsheetThe PPFAS factsheet contains the AMC’s own performance disclosure. Cross-check the rating provider’s data against the factsheet’s NAV and benchmark.

Three principal rating providers cover Indian mutual funds: Value Research Online , Morningstar India , and CRISIL Risk and Return Analysis. Each uses a different methodology, so the same PPFAS scheme can carry different star ratings simultaneously across the three. PPFAS schemes typically rate well on consistency and risk-adjusted return measures, but ratings shift over time as performance metrics roll forward; a 5-star Value Research rating today is not a permanent label.

Two cautions worth holding in mind. Ratings are entirely backward-looking and quantitative; they tell you what the past 3, 5, or 10 years looked like, not what the next decade will. And the qualitative analyst commentary (which Value Research and Morningstar both provide) is often more useful than the star count itself, because the commentary captures method and philosophy in a way the numbers don’t. Use ratings as one input alongside the factsheet and the Annual Letter rather than as a decision substitute.

The walk-through

1. Visit the rating-provider website

Three primary providers, each accessible via a public-facing scheme search:

Value Research Online (valueresearchonline.com): The most widely-read Indian mutual fund research portal. Free access to most basic content; premium subscription for deep analytics.
Morningstar India (morningstar.in): Global research firm with India coverage. Free public ratings; subscription for premium analyst reports.
CRISIL (crisil.com): Credit-and-research arm of S&P Global; the CRISIL Risk and Return Analysis product provides scheme ratings.

2. Search for the PPFAS scheme of interest

In each provider’s search bar, enter:

Parag Parikh Flexi Cap Fund or PPFCF.
Parag Parikh ELSS Tax Saver Fund.
Or other PPFAS scheme names.

The scheme detail page loads with rating summary, performance data, and analyst commentary.

3. Locate the rating summary

Each provider’s scheme page typically shows:

Current star rating (out of 5).
Category (e.g., Flexi Cap for PPFCF).
Category rank (e.g., 5 out of 28 in the flexi-cap category).
AUM and inception date.
Risk-grade (low, moderate, high; some providers use different scales).
Returns over various periods (1Y, 3Y, 5Y, 10Y, since inception).
Risk-adjusted return metrics (Sharpe, Sortino, alpha, beta versus benchmark and category).

4. Read the rating methodology disclosure

Each provider explains its methodology. Common methodology components:

Value Research: Risk-adjusted return-based; specifically, 3-year and 5-year risk-adjusted performance, with weighting based on age of scheme. Star ratings (1 to 5) assigned based on category percentile rank.
Morningstar India: Global Morningstar methodology applied to Indian schemes. Uses a 3-pillar framework: People (fund manager), Process (investment philosophy), Parent (AMC). Combines quantitative metrics with qualitative judgement.
CRISIL Risk and Return Analysis: Composite score based on mean return, volatility (standard deviation), and downside risk. Star ratings 1 to 5.

Understanding the methodology helps interpret why a scheme may rate differently across providers.

5. Compare ratings across providers

PPFCF may rate differently across providers, often due to methodology differences:

Value Research: PPFCF historically rates 4 to 5 stars in flexi-cap category.
Morningstar India: PPFCF often receives Silver or Gold analyst rating (Morningstar’s qualitative tier).
CRISIL: Star rating based on quarterly analysis.

Cross-provider comparison reveals robustness:

Consistently high ratings across providers suggest broad-based quality.
Divergent ratings indicate provider-specific methodology effects.
Single-provider downgrades or upgrades may reflect short-term volatility rather than fundamental change.

6. Review the peer-comparison data

The rating page shows comparison metrics:

PPFCF vs flexi-cap category average: Returns, risk, expense ratio.
PPFCF vs top performers in category: Where PPFCF stands.
PPFCF vs benchmark (Nifty 500 TRI or similar): Tracking error, alpha generation.

Peer comparison is more diagnostic than absolute rating: a 4-star scheme in a strong category may be more performant than a 5-star scheme in a weak category.

7. Read the analyst’s qualitative commentary

Value Research and Morningstar publish analyst commentary:

Value Research: Concise paragraphs on the scheme’s positioning, recent performance, and risk profile.
Morningstar India: Detailed analyst report (premium content) covering people, process, parent, and price.

PPFAS schemes often receive commentary highlighting:

Fund manager continuity: Rajeev Thakkar has managed PPFCF since launch (24 May 2013).
Distinctive philosophy: Overseas allocation, focused portfolio, behavioural-finance lens.
Tight risk management: Drawdown control, cash overlay.
Lower-than-category-average expense ratio (for direct plan).

8. Cross-check with the PPFAS factsheet

The PPFAS monthly factsheet contains the AMC’s own performance and portfolio disclosure. Cross-check:

NAV history: PPFAS factsheet versus rating-provider data.
Returns over periods: Should largely agree, with minor differences due to calculation date variations.
Expense ratio: AMC-disclosed versus rating-provider-listed.
AUM: AMC-disclosed versus rating-provider-listed.

Any material discrepancy should prompt verification; the AMC’s primary disclosure prevails.

What trips people up

Treating star ratings as predictive: Star ratings are historical and quantitative. High past ratings do not guarantee future performance. Use ratings as one input among many.
Single-provider over-reliance: Different providers use different methodologies. PPFCF rating divergence across providers is normal; consider triangulation.
Short-period ratings: Some sub-rating providers compute ratings on 1-year or shorter periods. These are highly noisy. Prefer 3-year, 5-year, or longer-period ratings.
Category-misclassification: Schemes are sometimes recategorised by SEBI. PPFCF was Multi-Cap (as PPLTEF) before becoming Flexi Cap on 13 January 2021. Pre-2021 category-rank data may not be directly comparable.
Expense ratio differences: Rating providers may list the regular-plan TER while investors hold direct-plan units. Verify which TER is shown.
PPFAS specific scheme launches: Newer schemes (Arbitrage Fund 2023, DAAF 2024, Large Cap 2026) may have limited rating-history. CRISIL and Value Research typically require 3+ year history for full ratings.
Analyst commentary timing: Commentary may be 3 to 6 months old; verify the publication date of the qualitative report.
Premium-content paywalls: Deep analytical content may be behind paywalls. Free public content provides basic rating and methodology; premium provides depth.
Rating recalibration after SEBI category changes: When SEBI scheme rationalisation occurred in 2017, schemes were recategorised and ratings recomputed. PPFAS schemes’ ratings post-recategorisation may differ from pre-2017 ratings.
Comparing across countries: Morningstar’s global methodology may produce ratings comparable across countries; comparing Indian PPFCF to a US flexi-cap (if such existed) requires methodology-aware care.

How to read a PPFAS monthly factsheet covers the AMC’s own performance disclosure
How to interpret PPFAS NAV history charts covers NAV-based performance analysis
How to read PPFAS AUM and net-flow data covers AUM growth tracking
How to read PPFCF portfolio-holdings disclosure covers portfolio analysis
The reference article on Value Research Online covers the platform
The reference article on Morningstar India covers the platform

External references

References

Value Research Online methodology documentation.
Morningstar India research methodology and analyst-rating framework.
CRISIL Mutual Fund Ratings methodology.
PPFAS Mutual Fund monthly factsheet archive.
PPFAS Mutual Fund, Parag Parikh Flexi Cap Fund Scheme Information Document.
SEBI Master Circular for Mutual Funds, 22 May 2024.
SEBI Scheme Rationalisation Circular, 2017.
AMFI Industry Best Practices on category framework.
CFA Institute Standards on Investment Performance Reporting.
PPFAS investor desk FAQ at amc.ppfas.com/faqs/.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 17 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.