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The stock markets, like they have done over the past couple of years, went for a downward slide as March-end approached.
The BSE Sensex closed the week at 6,443 points, down by 257 points (3.83%). The S&P CNX Nifty ended the week down by 94 points (4.45%) to close at 2,015 points.
Investment experts advise investors to minimise risk by investing in a basket of investment instruments.
Gold happens to be one of them for its inflation-hedging prowess. But it should form a part of investors' portfolio only to the extent that their asset allocation permits them.
| Diversified equity funds | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | Incep. | SD | SR |
| JM EQUITY & DERIVATIVE | 10.04 | 0.18% | NA | NA | NA | 0.20% | NA | NA |
| PRINCIPAL FOCUSSED ADV. | 9.64 | -2.63% | NA | NA | NA | -2.63% | NA | NA |
| PRINCIPAL DIV. YIELD | 11.21 | -3.03% | 0.90% | NA | NA | 12.10% | 4.31% | 0.46% |
| CHOLA GROWTH | 16.35 | -3.08% | -1.39% | 21.29% | 25.48% | 40.96% | 6.47% | 0.59% |
| GIC GROWTH II | 22.4 | -3.11% | -2.61% | 28.37% | 44.05% | 8.47% | 6.08% | 0.49% |
(The Sharpe Ratio is a measure of the returns offered by the fund vis-�-vis those offered by a risk-free instrument) (Standard deviation highlights the element of risk associated with the fund.)
The last week, like the week before, was no different for schemes from the diversified equity funds segment. Mutual fund NAVs fell sharply.
JM Equity and Derivative (0.18%) was the only scheme, which managed to post positive returns. Principal Focussed Advantage (-2.63%) took the number two spot with Principal Dividend Yield (-3.03%) sitting at number three.HDFC [Get Quote] Top 200 (-3.72%), HSBC Equity (-4.14%) and Franklin India Bluechip (-4.61%), all fared poorly.
Yet another IPO beckons the mutual fund investor! Fidelity Equity Fund is the latest IPO to hit the market. Personalfn has come out with a clear view on the same.
| Debt funds | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | Incep. | SD | SR |
| DEUTSCHE DYN. BOND | 10.26 | 0.35% | 0.26% | 3.30% | 2.33% | 1.95% | 1.03% | -0.37% |
| DEUTSCHE PREM. BOND | 11.18 | 0.31% | 0.38% | 0.93% | 1.07% | 1.64% | 0.96% | -0.06% |
| TEMPLETON INC. BUILD. ACC | 23.37 | 0.24% | 0.38% | 1.16% | -0.07% | 11.53% | 0.83% | -0.24% |
| ALLIANCE INCOME | 23.09 | 0.22% | 0.23% | 1.11% | 0.55% | 10.94% | 0.84% | -0.24% |
| PRU ICICI [Get Quote] FLEX INCOME | 12.16 | 0.19% | 0.35% | 1.69% | 2.12% | 8.05% | 0.67% | -0.17% |
Debt funds, unlike their diversified equity counterparts, managed to stay positive. The 10-year GOI remained unchanged at 6.67%. Schemes from the Deutsche stable hogged the limelight this week.
Deutsche Dynamic Bond (0.35%) led from the front closely followed by Deutsche Premier (0.31%) and Templeton Income Builder (0.24%).
Investors should also keep an eye on inflation as it plays a role in determining the 'real rate of return'. With oil prices on a northward journey, concerns have been raised about its impact on inflation and in effect the debt market returns.
| Balanced funds | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | Incep. | SD | SR |
| UTI VARIABLE INV. ILP | 12.29 | -1.19% | -0.91% | 6.78% | 10.64% | 18.45% | 3.44% | 0.37% |
| SUNDARAM BAL G | 20.29 | -1.50% | -0.20% | 12.56% | 27.20% | 15.69% | 4.71% | 0.52% |
| KOTAK BALANCE | 17.22 | -2.41% | -1.18% | 21.59% | 41.91% | 16.04% | 5.68% | 0.49% |
| PRINCIPAL BALANCED G | 13.94 | -2.52% | -0.99% | 16.36% | 23.25% | 5.33% | 5.33% | 0.51% |
| BOB BALANCED G | 14.76 | -2.64% | -1.93% | 16.68% | 32.26% | 29.63% | 6.35% | 0.29% |
As balanced funds are linked to equity markets, they too had to face the wrath of falling markets. UTI Variable Investment (-1.19%) emerged as the leader followed by Sundaram Balanced (-1.50%) and Kotak Balanced (-2.41%).
If markets correct further, risk-taking investors should use this opportunity to increase their allocations to equity/balanced funds. Investors who have taken the SIP route, will stand to benefit from falling markets in any case.
Learn how the Union Budget 2005-06 impacts you. For the latest issue of Money Simplified absolutely FREE!Click here!
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