Notwithstanding, the 542-point dip on July 27, 2007, it was a good month for investors as markets closed in positive terrain. The BSE Sensex posted a gain of 6.14% to close at 15,551 points, while the S&P CNX Nifty closed at 4,529 points (up by 4.89%). The CNX Midcap rose by 3.38%, before settling at 6,178 points.

In July 2007, Foreign Institutional Investors (FIIs) were net buyers of equities with purchases of Rs 188,051 m (as on July 31, 2007). On the contrary, mutual funds were net sellers to the tune of Rs 8,935 m.

At Personalfn, we often receive queries from investors pertaining to positioning of funds. Simply put, they would like to know what investment proposition a given fund offers and how (if at all), it is different from another offering from the same fund house. Given that often a number of schemes offer similar investment propositions, this dilemma is understandable. Recently, we received queries pertaining to Franklin India Prima Plus (FIPP) and Franklin India Flexi Cap (FIFC).

While FIPP is a predominantly large cap fund, FIFC is a flexi cap fund, that can invest in stocks from across market segments. Hence the funds are about as similar as chalk and cheese.
 

• Click here to read our view on Franklin Prima Plus vs. Franklin Flexi Cap
   

  Leading open-ended equity funds

  Equity Funds	NAV (Rs)	1-Mth	6-Mth	1-Yr	SD	SR
  JM Basic	26.85	8.78%	30.98%	88.96%	9.19%	0.38%
  BOB Growth	35.42	8.12%	14.55%	44.81%	6.96%	0.26%
  CanInfrastructure	17.61	7.97%	20.95%	65.20%	8.87%	0.28%
  JM HI FI	12.10	7.52%	6.57%	44.16%	10.58%	0.12%
  DWS Investment Opp.	28.43	7.45%	19.25%	61.35%	8.53%	0.31%

  (Source: Credence Analytics. NAV data as on July 31, 2007.)
  (Standard Deviation highlights the element of risk associated with the fund. Sharpe Ratio is a measure of the returns offered by the fund vis-à-vis those offered by a risk-free instrument)

  JM Basic (8.78%) emerged as the best performer in the equity funds segment, followed by BOB Growth (8.12%) and CanInfrastructure (7.97%). JM HI FI (7.52%), another thematic offering also featured among the top performers.

  Leading open-ended long-term debt funds

  Debt Funds	NAV (Rs)	1-Mth	6-Mth	1-Yr	SD	SR
  Birla Income Plus	32.36	4.67%	6.50%	10.00%	1.04%	-
  ICICI Pru. Income	22.53	4.34%	4.80%	9.54%	1.08%	-0.01%
  Templeton Income	27.07	3.82%	5.55%	8.68%	0.90%	-0.04%
  Templeton Inc. Builder	25.81	3.30%	3.41%	7.25%	0.91%	-0.19%
  Birla Sun Life Income	27.53	3.26%	6.98%	12.33%	0.77%	0.28%

  (Source: Credence Analytics. NAV data as on July 31, 2007.)

  Birla Income Plus (4.67%) occupied top slot in the long-term debt funds segment. ICICI Prudential Income (4.34%) and Templeton Income (3.82%) came in at second and third positions respectively. Another fund from Franklin Templeton Mutual Fund i.e. Templeton Income Builder (3.30%) also featured in the top performers list.

  Not too long ago, fixed maturity plans (FMPs) emerged as favoured investment avenues with risk-averse investors. With their proposition of offering nearly assured and attractive returns, FMPs made apt choices in a risk-averse investor's portfolio. However, in the recent past, yields from FMPs have lowered, making them relatively unattractive. This month, we put forth an investment strategy that can help investors ace falling FMP returns.

  Leading open-ended balanced funds

  Balanced Funds	NAV (Rs)	1-Mth	6-Mth	1-Yr	SD	SR
  JM Balanced	27.19	7.57%	13.92%	44.42%	6.30%	0.34%
  Canbalance	31.52	5.17%	9.75%	32.16%	5.51%	0.17%
  Birla Balance	31.42	4.92%	11.14%	35.23%	4.91%	0.26%
  LIC MF Balanced	47.99	4.52%	2.48%	24.36%	6.03%	0.17%
  UTI Balanced	61.12	3.80%	7.91%	29.71%	5.33%	0.21%

  (Source: Credence Analytics. NAV data as on July 31, 2007.)

  JM Balanced (7.57%) led the pack in the balanced funds segment, followed by Canbalance (5.17%) and Birla Balance (4.92%).

  With a wide range of investment opportunities available, investors are often left wondering where they should invest. In such a scenario, at times investors take the easy way out and invest in avenues recommended by their friends or family members; conversely, the right course of action would be to seek advice from a financial planner/investment advisor. This is just one of the many common investment mistakes committed by investors.
   

• 5 common investment mistakes
   

  Finally, with the markets acting at their volatile best, some investors are having second thoughts about their investments. Here's our take on the situation equity investments are meant for investors who have a long-term (at least 3-Yr) investment horizon and the ability to take on risk i.e. even tolerate an erosion of the invested amount during the interim. If you don't fit into the aforementioned criteria, maybe its time to reconsider the aptness of your investments.

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