CRISIL assigns India''s first fund house rating to HDFC AMC

CRISIL has assigned India's first 'fund governance and process quality rating' (fund house rating), to HDFC Asset Management Company Limited (HDFC AMC). This rating is the first fund house evaluation to offer a comprehensive view of an AMC, unlike those that are overwhelmingly driven by quantitative dynamics, and are limited to scheme-specific analyses.

The CRISIL rating assesses functioning organisational structure and corporate governance; investment processes; risk management practices; operational processes and selling and client servicing practices, which will benefit investors in making their investment decisions.

According to Roopa Kudva, executive director and chief rating officer, CRISIL, "CRISIL has been a pioneer in rating and ranking mutual funds in India. Our new fund house ratings complements our existing product range and provides a comprehensive framework to assess governance and process-related aspects in an asset management company (AMC). With significant qualitative insights, CRISIL's Fund House ratings provide investors and other stakeholders a powerful tool for assessing and evaluating fund houses."

These ratings will also serve as external feedback on their strengths and weaknesses benchmarked to industry best practices.