With equity markets breaching the 13,000-point mark and touching record highs with every passing week, most investors want to know "what should we do now?"

Well, we don't have anything new to offer. Our advice for investors remains largely unchanged. We have always advised investors to invest in line with their risk profiles and to adhere to their asset allocations, since changing market conditions have no impact on these factors Similarly, drawing up an investment plan and adhering to the same is important at all times.

Also, we have always recommended that investors opt for the systematic investment plan (SIP) mode of investing to even out market fluctuations. Our advice remains unchanged even now.

Speaking of new, the retail investor's fascination for something new in his portfolio is something that never fails to amaze us. First, it was new fund offers (NFOs), which caught the investor's imagination.

Thanks to unscrupulous investment advisors and mutual fund distributors, investors bought into NFOs on the grounds that the Rs 10 NAV (net asset value) makes the NFO a cheaper buy as compared to an existing fund with a higher NAV. Nothing could be farther from the truth.

The NAV simply represents the assets backed by each unit. Effectively the Rs 10 NAV offered by a fund at the NFO stage is not cheaper than an existing fund with an NAV of say Rs 100.

Also, at times there is a resistance from investors, when it is recommended that additional investments be made to their existing funds. Again, the issue of investing in something "new" crops up. If your existing funds have performed in a manner expected of them and they also match your risk profile, why bother investing in new fund?

A fund should feature in your portfolio if it merits so, i.e. if it can add value to your portfolio, not by virtue of being a new fund.

The BSE Sensex posted a weekly gain of 1.16% to close at 13,283 points, while the S&P CNX Nifty appreciated by 0.79% to end at 3,835 points. Mid cap stocks were back in action; the CNX Midcap clocked 1.89% to close at 4,968 points.

Kotak Lifestyle (4.26%) led the pack in the diversified equity funds segment, followed by Magnum Emerging Businesses (3.84%). Franklin India Opportunities (3.38%) also featured among the top performers.

The 10-year 7.59% GOI yield closed at 7.60% (November 10, 2006), 2 basis points below the previous weekly close. Bond yields and prices are inversely related with falling yields translating into higher prices and net asset values (NAVs) for debt fund investors.

Sahara Income (1.50%) towered head and shoulders above the rest. Escorts Income (0.46%) and Birla Sun Life Income (0.45%) occupied second and third positions, respectively.

Principal Balanced (1.62%) and Magnum Balanced (1.62%) shared the top position in the balanced funds segment. DSP ML Balanced (1.06%) also featured in the list.

At a time when most NFOs are strictly humdrum and having nothing new to offer, the Franklin Templeton Capital Safety Fund NFO merits mention. The fund is a first from the recently launched capital protection oriented funds segment.

Contrary to popular belief, capital protection oriented funds don't guarantee the capital or even the returns. However, their portfolio structure is the noteworthy feature. The portfolio is constructed in a manner whereby on maturity, investors are likely to receive at least the original sum (capital) invested.

For risk-averse investors, it's an opportunity to participate in a market-linked investment avenue while keeping the capital protected, thereby making the fund an interesting investment option.

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