How to Use Value Research Online to Pick the Best Mutual Funds in India
Blog by Aliceblue News Desk
08 June 2026
11 minutes
Many new investors start their mutual fund journey by searching for the “best mutual funds in India.” Most of them then look at the fund with the highest recent return and think, “This must be the best one.”
But mutual fund selection does not work that way.
A fund’s return is only one part of the story. You also need to check its risk, consistency, cost, fund category, portfolio, and whether it matches your own investment goal. This is where Value Research Online can be useful. It helps investors compare mutual funds in one place using ratings, returns, risk levels, expense ratios, portfolio details, and fund categories.
As of March 31, 2026, India’s mutual fund industry had an AUM of ₹73.73 lakh crore and 27.39 crore folios. With more investors entering mutual funds, knowing how to compare schemes properly has become even more useful.
What is Value Research Online?
Value Research Online is an Indian investment research platform that helps investors study mutual funds, stocks, and personal finance topics. For mutual funds, it offers tools such as fund ratings, fund screeners, fund comparison, SIP return calculators, category-wise fund data, and portfolio details.
For beginners, its biggest benefit is that it gives a clear way to compare mutual funds. Instead of looking only at returns on an investing app, investors can check details such as:
- Fund category
- Value Research star rating
- 1-year, 3-year, and 5-year returns
- Risk grade
- Expense ratio
- Fund manager details
- Portfolio holdings
- Benchmark comparison
- SIP return history
Value Research says its fund ratings help investors identify funds that have performed well on a risk-adjusted basis compared with similar funds. It also explains that ratings should be used as a starting point, not as the only reason to invest.
How to Use Value Research Online to Pick the Best Mutual Funds in India
1. Start With Your Investment Goal
Before using any mutual fund screener, first ask yourself why you are investing. Your goal decides which type of fund you want.
For example:
- If you are building an emergency fund, liquid or overnight funds may be suitable.
- If your goal is 1–3 years away, short-duration or low-duration debt funds may be considered.
- If your goal is more than 5 years away, equity mutual funds may be considered.
- If you want tax benefits, ELSS funds may be useful.
- If you are planning for retirement, index funds, flexi-cap funds, or hybrid funds may be considered based on your risk comfort.
No mutual fund is the “best” for everyone. A fund is suitable only when it matches your goal, risk comfort, and investment period.
2. Choose the Right Mutual Fund Category
On Value Research Online, mutual funds are grouped into categories such as large cap, flexi cap, mid cap, small cap, ELSS, hybrid, debt, index funds, and sector funds.
This step matters because every fund category carries a different level of risk.
For example, a small-cap fund may give high returns during a strong market, but it can also fall sharply when the market corrects. A liquid fund may give lower returns, but it is designed for short-term money parking and lower volatility.
Beginners should compare funds only within the same category. A large-cap fund should be compared with another large-cap fund. A flexi-cap fund should be compared with another flexi-cap fund. A short-duration debt fund should be compared with similar debt funds.
3. Use the Value Research Mutual Fund Screener
The Value Research Mutual Fund Screener helps investors filter funds based on different criteria such as returns, ratings, fees, and fund type.
A beginner can start with filters like:
- Fund category
- Direct plan or regular plan
- 3-year and 5-year returns
- Value Research rating
- Risk grade
- Expense ratio
- Fund size
- SIP return history
It is better not to use too many filters in the beginning. Start with the fund category, then narrow the list using returns, risk, cost, and consistency.
4. Understand Value Research Star Ratings
Value Research star ratings are based on risk-adjusted returns. This means the rating does not only look at which fund gave the highest return. It also considers how much risk the fund took compared with similar funds.
A 5-star fund has performed well against its peers in the past after adjusting for risk. But this does not mean it will surely perform best in the future.
Use star ratings to shortlist funds. After that, check the fund’s category, portfolio, expense ratio, risk level, and whether it suits your goal.
5. Check Risk Before Returns
Many beginners look at returns first. A better way is to check the risk first.
Every mutual fund also carries a SEBI Riskometer. It helps investors understand the risk level of a mutual fund scheme.
Riskometer levels include:
- Low
- Low to Moderate
- Moderate
- Moderately High
- High
- Very High
Most equity mutual funds fall under high or very high risk. That does not mean they are bad. It only means investors should be ready for market ups and downs.
6. Compare Returns Across Different Periods
Do not choose a fund only because it gave the highest 1-year return.
Check different return periods, such as:
- 1-year return
- 3-year return
- 5-year return
- 10-year return, if available
- SIP return
- Category average return
- Benchmark return
A fund that has performed steadily across different market periods may be more suitable than a fund that has done well only recently.
For example, suppose Fund A gave 35% in one year but has a weak 5-year performance. Fund B gave steady returns over 3 and 5 years. For a long-term investor, Fund B may be a better choice even though Fund A looks more attractive in the short term.
7. Check Expense Ratio and Exit Load
The expense ratio is the annual cost charged by the mutual fund scheme. It affects your returns because it is deducted from the fund’s assets.
This matters a lot in index funds. Since many index funds track the same index, a lower expense ratio can make a difference over a long period.
Also, check the exit load. Exit load is a charge applied when investors redeem units before a certain period.
For example, if a fund charges 1% exit load for redemption within 1 year, selling early can reduce your final return.
8. Use the Fund Compare Tool
After shortlisting 3-5 funds, use the Value Research Fund Compare tool. It helps investors compare funds across performance, expense ratio, and other details.
Compare these points:
- Fund category
- Star rating
- Risk grade
- 3-year and 5-year returns
- Expense ratio
- Assets under management
- Benchmark
- Fund manager
- Portfolio holdings
- Sector allocation
This helps investors avoid picking a fund only because it appears at the top of a return list.
9. Study the Fund Portfolio
A mutual fund is a collection of stocks, bonds, or other securities. So, it is useful to know what the fund actually owns.
For equity funds, check:
- Top 10 stocks
- Sector exposure
- Large-cap, mid-cap, and small-cap allocation
- Portfolio concentration
- Cash holding
For debt funds, check:
- Credit quality
- Average maturity
- Interest rate risk
- Issuer concentration
This helps you understand whether the fund is taking extra risk to generate returns.
10. Review, But Do Not Keep Switching
Reviewing your mutual funds is useful, but switching too often can hurt your investment discipline.
You can review your fund if:
- It underperforms its category for a long period
- The fund manager changes
- The fund’s strategy changes
- The fund becomes too risky for your goal
- Your financial goal changes
A rating change alone is not always a reason to exit immediately.
Example: Using Value Research Online in a Real Indian Investing Situation
Rohan, a 30-year-old investor from Pune, wants to invest ₹8,000 per month through SIP for 10 years. His goal is long-term wealth creation. He is new to mutual funds and does not want too much volatility at the start.
Here is how he can use Value Research Online:
- He decides his goal: long-term wealth creation.
- He avoids sector and thematic funds because they can be narrow and risky for beginners.
- He checks large-cap, flexi-cap, and index funds.
- He uses the fund screener to filter funds with at least 5 years of history.
- He checks ratings, risk grade, returns, expense ratio, and portfolio holdings.
- He compares 4 funds side by side.
Fund Type | 5-Year Return | Risk Level | Expense Ratio | Rohan’s View |
Nifty 50 Index Fund | 13% | Very High | 0.20% | Low cost and easy to understand |
Large Cap Fund | 14% | Very High | 0.75% | Active fund with moderate cost |
Flexi Cap Fund | 15% | Very High | 0.85% | Flexible portfolio, but higher cost |
Small Cap Fund | 21% | Very High | 0.90% | High return, but too volatile for his first SIP |
In this example, Rohan may choose a mix of a Nifty 50 index fund and a flexi-cap fund instead of putting all his money into the small-cap fund.
The small-cap fund has the highest return in the table, but it may not match his risk comfort.
Key Features of Value Research Online
1. Fund Ratings
Fund ratings help investors shortlist funds based on risk-adjusted past performance.
2. Mutual Fund Screener
The screener helps investors filter funds by category, return, rating, risk, and cost.
3. Fund Compare Tool
The comparison tool helps investors study multiple funds side by side before making a decision.
4. SIP Return Calculator
SIP return tools help investors understand how regular investments in a fund may have performed over selected periods.
5. Portfolio Details
Investors can check what stocks, sectors, or debt instruments a fund holds.
6. Category-Wise Research
Category-wise data helps investors compare similar funds rather than unrelated schemes.
Advantages of Using Value Research Online
1. Helps Avoid Return Chasing
Many beginners pick funds based only on recent returns. Value Research helps investors assess risk, costs, category, and longer-term performance.
2. Makes Fund Comparison Easier
Instead of checking many AMC websites separately, investors can compare several funds in one place.
3. Useful for SIP Investors
SIP investors can check long-term SIP performance and understand how steady investing has worked in different funds.
4. Helps Match Funds With Risk Comfort
Risk grades and Riskometer details help investors avoid funds that may be too volatile for them.
5. Helps Review an Existing Portfolio
Investors who already own mutual funds can check whether they hold too many similar schemes.
Risks or Limitations
- Ratings Are Based on Past Performance
A high rating means the fund has done well in the past. It does not guarantee future returns.
- A 5-Star Fund May Not Suit Every Investor
A 5-star small-cap fund may still be unsuitable for someone investing for only two years.
- Some Funds May Not Be Rated
Funds with short performance histories may not have ratings. Investors should keep this in mind while comparing schemes.
- Direct and Regular Plans Can Differ
Direct plans usually have lower expense ratios than regular plans. Always check which plan you are reviewing.
- It Is Not Personal Financial Advice
Value Research provides research and tools, but it does not know your income, loans, insurance cover, tax position, or family needs.
Online vs Other Mutual Fund Research Sources
Source | Best For | Main Benefit | Limitation |
Value Research Online | Screening and comparing mutual funds | Ratings, returns, risk, and comparison tools | Ratings are based on past data |
AMC Factsheet | Studying one fund in detail | Official portfolio and fund manager note | Hard to compare many funds quickly |
AMFI Website | Industry and official mutual fund data | Reliable market-level data | Not mainly built for fund selection |
Broker App | Investing and tracking | Easy order placement | Fund lists may not always explain suitability |
Financial Advisor | Personal planning | Goal-based guidance | Quality depends on the advisor’s skill and the fee model |
Common Mistakes Beginners Should Avoid
- Choosing Funds Only by 1-Year Return
Short-term returns can change quickly. Check the 3-year and 5-year performance too.
- Comparing Different Fund Categories
Do not compare a small-cap fund with a large-cap fund or a debt fund. Each category has a different purpose.
- Ignoring Risk
High returns often come with higher risk. Check the Riskometer before investing.
- Buying Too Many Funds
Owning 8-10 equity funds may not always improve diversification. Many funds may hold similar stocks.
- Switching Funds Too Often
Frequent switching can lead to poor timing decisions and weak investment discipline.
- Ignoring Expense Ratio
Cost matters over long periods, especially for index funds and large portfolios.
- Thinking NFOs Are Cheap Because NAV is ₹10
A ₹10 NAV does not mean the fund is cheap. Fund quality depends on strategy, portfolio, cost, and suitability.
Conclusion
Value Research Online can help beginners pick mutual funds in a more structured way. Start with your goal, select the right fund category, use the screener, check ratings, compare risk and returns, review the expense ratio, and study the portfolio before investing.
Do not choose a fund only because it has the highest recent return or a 5-star rating. The best mutual fund is the one that matches your goal, time horizon, and risk comfort.
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Blog by Aliceblue News Desk
