Our Bureau

Mumbai , Nov. 22

CRISIL, a rating firm, has assigned India's first fund house rating to HDFC Mutual fund. The Mutual Fund has been assigned the Fund House Level 1 rating, which indicates the highest governance levels and process quality in fund management practices.

Fund house ratings involve a detailed assessment of all aspects of an asset management company, organisational structure and corporate governance, investment processes, risk management practices, operational processes and selling and client servicing practices.

In a release on Monday, Crisil said fund house ratings will benefit investors, distributors and AMCs themselves. Investors and distributors can rely on these ratings to identify AMCs that follow the highest standards of corporate governance and process quality.

It said this product is especially relevant in the current environment where a large number of sophisticated investors are conscious of governance issues and want to factor such qualitative assessments into their decision making process.

According to Ms Roopa Kudva, Executive Director and Chief Rating Officer, Crisil, fund house ratings provide investors and other stakeholders a powerful tool for assessing and evaluating fund houses.

© Copyright 2000 - 2009 The Hindu Business Line