PhonePe's latest tool helps you choose the right mutual fund
What's the story
PhonePe has launched CRISP, a digital tool aimed at helping investors make informed decisions while selecting mutual funds.
Even as mutual fund investments continue to gain popularity, a large number of investors still find it difficult to choose the right funds.
As per data from the Association of Mutual Funds in India (AMFI), unique investors have surged from 20 million in December 2019 to 53 million in December 2024.
Tool details
A comprehensive framework for MF selection
CRISP, which stands for consistency, risk and investment style of the portfolio, provides a holistic framework that goes beyond looking at past returns.
Traditionally, retail investors on wealth technology platforms have depended on historical performance metrics to make a call. This often resulted in poor investment choices.
CRISP makes this process easier by converting performance data into actionable insights.
Investor support
PhonePe Wealth's commitment to investor support
Nilesh D Naik, Head of Investment Products at Share. Market (PhonePe Wealth) credited the growth of the mutual fund industry to increased investor awareness and wealth tech platforms.
He said, "At PhonePe Wealth, our focus is on supporting investors on our platform through innovative tools like CRISP."
Naik also stressed on their dedication to building research-driven solutions that guide investors on their wealth creation journey.
Evaluation criteria
How does CRISP evaluate mutual funds?
CRISP rates mutual funds on three important parameters: consistency of performance, relative risk with peers, and investment style/factor analysis.
The tool analyzes a fund's performance over five years with rolling returns and rates them 'High,' 'Medium,' or 'Low' based on their sustained performance with respect to peers.
It also rates a fund's risk profile with respect to its peer group as 'Within acceptable range' or 'Too High.'
Diversification
CRISP's role in portfolio diversification
CRISP assesses a fund's exposure to various investment factors (value, quality, momentum) over a five-year period.
Each factor gets a classification of 'high,' 'medium,' or 'low.' This gives investors clarity on the fund's management style and helps them diversify their portfolio.
CRISP is offered on PhonePe's platform and will be integrated with Share. Market, PhonePe Wealth's stock broking platform.