What can go wrong if I were to pick funds purely based on CRISIL rating and invest in the 1st ranked funds? What other ratings are available? Are there better ways to identify good funds?

Every seasoned advisor in the industry will have his or her own ranking model. The key is to understand the philosophy behind it and engage someone who will work the fund list for you based on your goals and preferences.

Another thing to keep in mind is that the top ranking funds in any year often do not repeat that performance in the following year(s). Therefore it is important to look at consistency rather than just recent performance. ThIs leads to a more stable ‘sequence of returns’ which is the hallmark of a stable portfolio.

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