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October 27, 2006 09:41 IST
Unfortunately for investors, the festive season commenced on a sorry note with markets slumping sharply. After being poised to breach the 13,000 level (12,928 on October 16, 2006), markets corrected to settle at 12,737 points (BSE Sensex). However, week on week (up 0.01%), markets were stagnant. On the same lines, the CNX Nifty appreciated marginally (0.22%) to close at 3,684 points. In a small reversal of sorts, the CNX Midcap (-0.19%) turned the other way to close at 4,767 points. The latest article in our series on thematic/sector funds fails to throw any new findings. This time we brought pharma funds under the scanner, we compared them with diversified equity funds to ascertain if they added any value to the investor's portfolio. The results were no different from the other comparisons we have done in the past -- over a 3-5 year period, sector/thematic funds have failed to beat diversified equity funds lending credence to the view that it's best to be with diversified equity funds over the long-term. Leading open-ended diversified equity funds| Diversified Equity Funds | NAV (Rs) | 1-Wk | 1-Mth | 1-year | SD | SR | | Ing Vysya Atm G | 10.31 | 1.48% | 6.40% | - | 10.99% | 0.03% | | Pruicici Dynamic G | 57.76 | 1.41% | 5.90% | 64.73% | 7.36% | 0.54% | | Kotak Global India Scheme G | 23.96 | 1.36% | 6.03% | 41.52% | 6.29% | 0.40% | | Pruicici Emerging Star G | 25.00 | 1.30% | 6.79% | 51.15% | 7.99% | 0.45% | | Kotal Mid-Cap G | 17.99 | 1.14% | 5.22% | 40.05% | 7.91% | 0.34% |
(Source: Credence Analytics. NAV data as on Oct. 20, 2006. Growth over 1-year is compounded annualised)
(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.) In a surprising development, we have ING Vysya ATM (a contrarian fund) at the top of the heap with 1.48% appreciation over last week. It was a particularly good week for equity funds from Kotak Mutual Fund and PruICICI Mutual Fund as they had two funds each in the top 5 rankings. Leading open-ended long-term debt funds| Debt Funds (LT) | NAV (Rs) | 1-Wk | 1-Mth | 1-year | 3-year | SD | SR | | Grindlays Super Saver G | 16.59 | 0.34% | 0.52% | 3.94% | 2.08% | 0.36% | -0.55% | | PruICICI Flexible Income | 13.27 | 0.14% | 0.59% | 5.30% | 3.66% | 0.25% | -0.34% | | Kotak Flexi Debt G | 11.25 | 0.14% | 0.59% | 6.69% | - | 0.07% | -0.42% | | Principal Income G | 17.2 | 0.14% | 0.81% | 6.25% | 3.83% | 0.38% | -0.15% | | Birla Dynamic Bond Retail G | 11.16 | 0.13% | 0.74% | 5.81% | - | 0.17% | -0.59% |
(Source: Credence Analytics. NAV data as on Oct. 20, 2006. Growth over 1-year is compounded annualised) Grindlays Super Saver (0.34%) led the long-term debt fund rankings by a significant margin. Its closest competitors were -- PruICICI Flexible Income, Kotak Flexi Debt and Principal Income -- all at 0.14%. The 10-year 7.59% GOI yield closed at 7.66% (October 20, 2006), 3 basis points above the previous weekly close. Bond yields and prices are inversely related with rising yields translating into lower bond prices and net asset value (NAV) for debt fund investors. Leading open-ended balanced funds | Balanced Funds | NAV (Rs) | 1-Wk | 1-Mth | 1-year | 3-year | SD | SR | | Kotak Balance | 22.58 | 0.79% | 3.66% | 41.50% | 38.83% | 4.70% | 0.56% | | Birla Sun Life 95 G | 165 | 0.73% | 3.18% | 34.17% | 34.28% | 4.54% | 0.49% | | FT India Balanced G | 30.64 | 0.36% | 4.11% | 40.63% | 31.78% | 4.76% | 0.43% | | LIC [Get Quote] Balance C G | 42.42 | 0.30% | 2.56% | 40.56% | 23.99% | 5.21% | 0.35% | | DSP ML Bal G | 35.98 | 0.28% | 3.54% | 41.65% | 33.48% | 4.49% | 0.46% |
(Source: Credence Analytics. NAV data as on Oct. 20, 2006. Growth over 1-year is compounded annualised) With Kotak Balance (0.79%) heading the balanced fund rankings, this was a bumper week for Kotak Mutual Fund with its schemes featuring among the leaders across the three categories under review. In addition to the festival season, visitors of Personalfn.com had some more reason to cheer as Money Simplified completed its 25th issue. This easy-to-understand, financial planning guide is arguably India's most popular and widely read (and distributed) investor handbook. An important reason for the success of Money Simplified is the insightful feedback that we receive from our readers. It is our endeavour to write on issues that are most relevant to our audience, so it's important that you continue writing in to us regularly. Truly, your feedback is important to us! For a Free download of the latest issue of 'Money Simplified -- The definitive guide to planning for your child's future,' click here!
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