PhonePe Wealth launches CRISP to help mutual fund investors make smarter choices

UPI payments giant PhonePe's subsidiary, PhonePe Wealth, has introduced CRISP, a new tool intended to help mutual fund investors select the right funds by going beyond past returns.

The launch follows a period of dramatic growth in India’s mutual fund market, where unique investors increased from 20 million in December 2019 to 53 million in December 2024, according to the Association of Mutual Funds in India.

Addressing key challenges for investors

PhonePe Wealth said many investors currently rely too heavily on point-to-point returns when choosing a fund, which can lead to suboptimal decisions. CRISP aims to fix that by taking into account performance consistency, risk levels, and the investment style of a fund.

It then translates this data into clear insights for everyday investors. The company believes this will help people avoid funds that have unpredictable performance or carry excessive risk.

How CRISP works?

CRISP examines a fund’s rolling returns over five years to gauge its consistency relative to its peers, labeling a fund as having “high,” “medium,” or “low” performance stability. It also compares a fund’s risk to similar funds, highlighting any that could be taking more risk than usual.

Additionally, it evaluates the fund’s approach to factors such as Value, Quality, and Momentum to give investors a better sense of how the fund is being managed. PhonePe Wealth notes that these details are crucial for constructing a diversified portfolio with an appropriate mix of styles.

Expanding research and intelligence

The CRISP tool is available now on the PhonePe platform and will soon be integrated with Share.Market, the company’s stock broking platform launched in August 2023.

This move is part of Share.Market’s broader mission to offer research and intelligence tools to investors and traders at all levels of expertise.

“The mutual fund industry is experiencing significant growth due to industry’s investor awareness initiatives and democratization of mutual fund investing by wealthtech platforms. At PhonePe Wealth, our focus is on supporting investors on our platform through innovative tools like CRISP. We are committed to developing research and technology-driven solutions that help investors embrace core investing principles and prudently navigate their wealth creation journey,” said Nilesh D Naik, Head of Investment Products, Share.Market (PhonePe Wealth).

What does PhonePe Wealth do?

PhonePe Wealth Broking Private Limited, set up in April 2021, is a subsidiary of PhonePe Private Limited. It is registered with the National Stock Exchange and the Bombay Stock Exchange as a Stock Broker, with the Central Depository Services as a Depository Participant, with the Securities and Exchange Board of India as a Research Analyst, and with the Association of Mutual Funds in India as a Mutual Fund distributor.

The company’s Share.Market platform serves both investors and traders, offering stocks, mutual funds, and other investment options.

By introducing CRISP, PhonePe Wealth aims to strengthen its research-driven approach and help investors navigate their financial goals with greater confidence.