The updated Star Track mutual fund ratings for June 2026 cover 488 schemes, prioritizing consistent risk-adjusted returns over short-term performance. Investors can use these rankings to compare fund quality based on rolling returns and the Sortino ratio. Several major equity and hybrid funds retained their top-tier status, while others saw ratings shift due to recent performance trends.
The latest Star Track mutual fund rankings have been released, providing a performance-based assessment of 488 actively managed schemes as of June 30, 2026. These ratings are designed to help Indian investors cut through the clutter of over 1,900 available schemes by highlighting funds that have delivered steady, risk-adjusted returns rather than just temporary spikes in value.
Evaluation Methodology and Metrics
The rating system evaluates funds based on their ability to manage downside risk while generating returns. The framework allocates a 60% weight to rolling returns, which measure performance over different market cycles, and 30% to the Sortino ratio, which specifically tracks returns relative to downside volatility. The remaining 10% is derived from one-year trailing returns to provide a snapshot of recent performance. Equity and hybrid funds are assessed using seven years of historical Net Asset Value (NAV) data, while debt funds are analyzed based on five-year records. This structure is intended to reward long-term consistency over speculative short-term gains.
Expansion and Performance Trends
This update marks the inclusion of the multi-asset allocation category, as several schemes have now completed a seven-year track record. Only funds maintaining an equity exposure above 65% over this period were eligible for this specific category, ensuring that comparisons remain consistent.
Performance remains stable for many established funds. Notable names including Nippon India Large Cap, ICICI Prudential Large Cap, Quant Mid Cap, and Parag Parikh Flexi Cap have retained their five-star status from the December 2025 review. In the hybrid and debt segments, funds such as Quant Aggressive Hybrid, HDFC Balanced Advantage, UTI Banking & PSU, and ICICI Prudential Corporate Bond were also recognized for maintaining top-tier ratings.
Monitoring Rating Shifts
Ratings are not static and often reflect changing market conditions or fund management strategies. While some funds achieved upgrades, others faced downgrades. Thirteen schemes, including HDFC Large & Mid Cap and Nippon India Small Cap, shifted from five stars to four stars. Additionally, 25 funds moved from a four-star to a three-star rating. These adjustments serve as a reminder for investors to verify if their current holdings continue to align with their original investment goals. The key monitorable for investors is to review these rankings periodically to ensure that a fund's risk profile and performance consistency remain in line with their long-term wealth creation plans.