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What must mutual fund investors do now?
December 03, 2004 15:47 IST
If October 2004 was a docile month for investors, the month of November more than made up for it by surging to record highs. The BSE Sensex posted a gain of 9.91% during the month to close at 6,234 points while the S&P CNX Nifty appreciated by 9.63% to end at 1,959 points. Leading Diversified Equity Funds| Diversified Equity Funds | NAV (Rs) | 1-Mth | 1-Yr | 3-Yr | Incep. | SD | SR | | MAGNUM MULTIPLIER PLUS | 19.15 | 18.58% | 35.04% | 35.37% | 18.58% | 8.34% | 0.48% | | ALLIANCE EQUITY FUND (G) | 73.50 | 13.97% | 50.61% | 47.13% | 13.97% | 7.24% | 0.60% | | GIC FORTUNE 94 | 16.74 | 12.35% | 26.15% | 49.39% | 12.35% | 7.85% | 0.45% | | BIRLA DIV. YIELD PLUS (G) | 26.55 | 12.31% | 39.37% | - | 12.31% | 8.12% | 0.57% | | PRU ICICI DYN. PLAN (G) | 23.94 | 11.40% | 17.18% | - | 11.40% | 7.71% | 0.39% |
(Source: Credence Analytics. NAV data as on Nov 30, 2004. Growth over 1-Yr is compounded annualised)
(The Sharpe Ratio is a measure of the returns offered by the fund vis-à-vis those offered by a risk-free instrument) (Standard deviation highlights the element of risk associated with the fund.)Equity-oriented funds from SBI Mutual Fund had a very good month; Magnum Multiplier Plus (18.58%) emerged as the top performer in the diversified equity funds segment. Alliance Equity (13.97%) and GIC Fortune 94 (12.35%) came in at second position and third positions respectively. Apart from funds investing in the mid cap segment i.e. funds like Magnum Global (10.20%) and UTI Thematic Midcap (10.18%) which have largely dominated proceedings in the recent past, this month also witnessed funds of the large cap variety i.e. Franklin India Bluechip (10.88%) and Principal Growth (10.07%) deliver impressive returns. It was a relatively modest month for category leaders HSBC Equity Fund (9.79%) and HDFC Top 200 (8.11%). Leading Debt Funds| Debt Funds | NAV (Rs) | 1-Mth | 3-Mth | 1-Yr | Incep. | SD | SR | | ESCORTS INCOME PLAN (G) | 20.45 | 0.53% | 0.96% | 5.53% | 11.53% | 0.46% | 0.22% | | DSP-ML FLOAT. RATE (G) | 10.79 | 0.49% | 1.37% | 4.95% | 5.02% | 0.04% | -3.66% | | PRU ICICI FLEXI INC. PLAN (G) | 11.94 | 0.47% | 0.31% | 1.60% | 8.36% | 1.88% | 0.01% | | BIRLA FLOATING RATE LTP (G) | 10.77 | 0.44% | 1.31% | 4.83% | 5.09% | 0.06% | -2.20% | | PRINCIPAL FLOAT. RATE (G) | 10.12 | 0.44% | - | - | 1.07% | 0.02% | -7.23% |
(Source: Credence Analytics. NAV data as on Nov. 30, 2004. Growth over 1-Yr is compounded annualised)None of the excitement from the equity markets spilled over to the debt markets. Factors like crude oil prices and inflationary concerns played their part in granting instability to debt markets. Both conventional long-term debt funds and floating rate funds featured in the top performers list. Escorts Income Plan (0.53%) surfaced as the best performer from the debt funds segment; floating rate funds like DSP ML Floating Rate (0.49%) and Birla Floating Rate (0.44%) also made their presence felt. In these seeming difficult conditions, liquid funds have clocked reasonable returns and investors could consider investing in the same to meet their short-term parking needs. Leading Balanced Funds| Balanced Funds | NAV (Rs) | 1-Mth | 1-Yr | 3-Yr | Incep. | SD | SR | | MAGNUM BALANCED | 16.63 | 10.28% | 38.33% | 30.14% | 16.13% | 5.36% | 0.59% | | CANGANGA | 12.97 | 9.45% | 25.51% | 24.66% | 6.29% | 6.79% | 0.39% | | ALLIANCE 95 (G) | 95.72 | 8.91% | 29.53% | 31.63% | 26.98% | 5.29% | 0.50% | | BOB BALANCED (G) | 13.70 | 8.21% | 23.42% | - | 30.33% | 6.53% | 0.28% | | TATA BALANCED (G) | 26.11 | 7.44% | 22.58% | 31.34% | 15.72% | 5.26% | 0.51% |
(Source: Credence Analytics. NAV data as on Nov 30, 2004. Growth over 1-Yr is compounded annualised)Balanced funds drew from the strong growth in the equity markets; top performers ranged from 7.44% to 10.28% during the month. Magnum Balanced (10.28%) topped the balanced funds segment while category leader HDFC Prudence (6.67%) had a moderate month. With equity markets touching record highs, the temptation to get invested and rake in quick profits can be a strong one. However our advice to investors remains unchanged, utilise the opportunity to book a part of your profits and restructure your portfolio. Fresh investments if any must be made with the long-term perspective and strictly through the systematic investment plan (SIP) route.
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