Know your fund house (or the Asset Management Company) before you invest in its scheme. If you have a certain comfort factor with the fund house's performance as a whole, chances are you will be reasonably satisfied with the performance of the scheme that you have selected.
Tracking the net asset value (NAV) is obviously one good way of ascertaining the performance of the fund house. And by looking at it from a longish perspective (say 3 years) you know with a fair degree of certainty how the fund house has done over the long term.
Another way to review the fund house is to look at its own background and its sponsors and the experience they bring to the venture. Sponsors with a good degree of experience and proficiency in fund management and an impeccable record in ethics and integrity will obviously inspire greater confidence in the investor.
This time we have reviewed IDBI-PRINCIPAL Asset Management Company, one the better performing fund houses in the country today.
How it all stacks up
| SCHEME |
NAV (Rs) |
1-WEEK |
1-MTH |
6-MTH |
1-YR |
3-YR |
INCEP. |
| CHILD I-NIT 1 TIME |
16.4 |
2.6% |
2.5% |
7.0% |
15.2% |
11.9% |
11.6% |
| IDBI PRIN GILT IP G |
11.7 |
0.7% |
2.1% |
5.7% |
- |
- |
16.8% |
| IDBI PRIN GILT SP G |
11.1 |
0.2% |
0.8% |
4.7% |
- |
- |
10.3% |
| IDBI-PRIN BAL G |
10.1 |
2.5% |
5.4% |
17.7% |
14.9% |
- |
-0.3% |
| IDBI-PRIN CASH CALL G |
11.3 |
0.1% |
0.5% |
3.2% |
6.8% |
- |
7.2% |
| IDBI-PRIN CASH LIQ G |
11.4 |
0.1% |
0.6% |
3.6% |
7.5% |
- |
7.9% |
| IDBI-PRIN DEP 54EA |
14.4 |
0.1% |
0.5% |
3.9% |
9.2% |
11.4% |
10.3% |
| IDBI-PRIN EQ G |
9.7 |
4.3% |
5.5% |
18.9% |
20.6% |
-2.1% |
0.3% |
| IDBI-PRIN GR G |
9.9 |
4.2% |
5.9% |
12.2% |
17.9% |
- |
-1.9% |
| IDBI-PRIN INC G |
12.9 |
0.4% |
1.4% |
5.4% |
13.5% |
- |
15.8% |
| IDBI-PRIN INC STP G |
10.2 |
0.2% |
0.8% |
- |
- |
- |
1.6% |
| IDBI-PRIN INDEX |
8.3 |
1.5% |
0.9% |
-2.6% |
0.5% |
- |
-7.1% |
| IDBI-PRIN TAX SAVINGS |
14.1 |
5.0% |
6.9% |
22.1% |
26.0% |
10.0% |
10.4% |
(NAVs as on July 8, 2002. Returns over 1-Yr are annualised compounded)
As the table highlights, IDBI-PRINCIPAL's equity schemes have performed reasonably well, although investors may want to compare these figures with its peers and the benchmark index to form a well-rounded opinion. The fund house's balanced and income schemes have also posted performances that are above average and superior to that of their peers. (To see how IDBI-PRINCIPAL's growth/income/balanced schemes fare vis-à-vis its peers, click here)
Getting to know these performances in the backdrop of the fund house's background and the sponsor's experience certainly gives the investor a lot of comfort and even confidence depending on the fund house's performance. So when you are looking at a scheme, first make sure you have got adequate inputs on the fund house.
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