Our view is that ratings by any third parties should not be the sole criteria. This is not a comment on any particular rating agency.
There are many examples where a particular company was rated highly for its bonds and within hours the company collapsed! IL&FS is the most recent example.
Do you own homework first, and if you find any reason for doubt stay away from the fund or bond. You can consider the rating as just another input.
This is one reason why on Jama.co.in we stay away form rating funds. We do not buy ratings from other third parties as well. You get access to data and advice in terms of how a fund has been performing, in absolute and relative terms, its volatility etc. This more than enough for most investors and helps them invest with peace to meet their life goals.
