The value of mutual funds is generally based on its Net Asset Value (NAV), which is mostly calculated on each business day. The NAV goes up and down depending on the value of the shares. For example, if the share value goes up, its NAV goes up.

Unfortunately, what most of the investors fail to realize is that often mutual fund rankings and ratings are based on the past performance of the net asset value appreciation front - just a few rankings and ratings takes into account factor like volatility & risk-adjusted performance.

Mutual fund rankings and ratings will vary over a period of time in line with a change in the fund’s performance. Mutual Fund rankings and ratings operate on the basis that one size should fit all.