In 2006, CRISIL assigned the country's first rating on a Capital Protection-Oriented Fund (CPF). The ratings on CPFs indicate the degree of certainty regarding timely payment of the face value of the units to unit holders on maturity of the scheme. The rating on CPFs is on the structured obligation (so) scale. The rating is not a comment on the scheme's net asset value (NAV) in relation to the face value of the scheme's units at any time before their redemption.
CPF ratings are monitored to analyse the probability of the following:
- The portfolio value falling below the initially contracted principal value
- Investors getting their money back in full
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