PhonePe Wealth launches CRISP to simplify mutual fund selection for investors

Team FS

    19/Mar/2025

What's covered under the Article:

  1. PhonePe Wealth launches CRISP, a tool to help investors evaluate mutual funds beyond past returns.

  2. CRISP analyzes mutual funds based on consistency, risk, and investment style, providing actionable insights.

  3. The tool is currently available on PhonePe and will soon be integrated into Share.Market, its stock broking platform.

PhonePe Wealth has introduced CRISP, a game-changing tool designed to help investors make informed mutual fund investment decisions. With the rise in mutual fund investments in India, investors often struggle to choose funds based on more than just past returns. CRISP, which stands for Consistency, Risk, and Investment Style of the Portfolio, aims to bridge this gap by providing a structured evaluation method for mutual funds.

How CRISP Works

CRISP evaluates mutual funds on three key parameters:

  • Performance Consistency: The tool assesses rolling returns over five years and categorizes funds as High, Medium, or Low based on their consistency.

  • Risk Comparison: Mutual funds are rated as either "Within Acceptable Range" or "Too High" based on their risk levels compared to peer funds.

  • Investment Style Analysis: CRISP examines fund portfolios based on Value, Quality, and Momentum factors, offering deeper insights into the fund’s management strategy.

Why CRISP is a Game-Changer for Investors

Many investors rely heavily on past point-to-point returns when selecting mutual funds. However, CRISP simplifies the process by converting complex financial data into actionable insights. This helps investors make well-informed decisions that align with their risk tolerance and diversification goals.

CRISP’s Availability and Future Integration

Currently, CRISP is available on the PhonePe Wealth platform, allowing investors to access its insights seamlessly. The company has also announced that CRISP will soon be integrated into Share.Market, its stock broking platform, further enhancing its investment ecosystem.

India’s Growing Mutual Fund Market

The launch of CRISP coincides with a significant increase in mutual fund adoption in India. According to AMFI data, the unique mutual fund investor base in India has expanded from 20 million in 2019 to 53 million in 2024. This surge underscores the need for better investment decision-making tools like CRISP.

As India’s fintech sector continues to grow, tools like CRISP are poised to redefine how investors analyze and select mutual funds. With its emphasis on performance consistency, risk evaluation, and investment style, CRISP is set to become an essential part of an investor’s toolkit.

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