The major market indices – BSE Sensex and S&P CNX Nifty have appreciated over the week by 1.1% and 1.4% respectively. Diversified growth funds have thrived on the growth wave and have even managed to outperform the major market indices.

With the markets showing faint signs of a revival, albeit with some volatility, growth funds have shot into the limelight. For a change, the markets are being lifted by old economy stocks and not technology, media and telecom (TMT), as has been the case for quite some time now. Most gainers during the week belong to the old economy, particularly cement and engineering. So we have seen ACC, BHEL, TELCO, IPCL, L&T, Guj. Ambuja, appreciating significantly compared to their TMT peers. The latter were listless with only NIIT witnessing some growth. Growth worksheet

Open-ended, Growth Schemes	NAV (Rs)	Last week	Last month	Last year	*CAGR Since inception
BSE Sensex	-	1.1%	7.0%	-16.9%	-
S&P CNX Nifty	-	1.4%	6.8%	-10.5%	-
CRISIL- 500	-	2.0%	8.3%	-13.2%	-
Mastershare Plus 1991	19.4	3.6%	7.5%	-14.3%	4.3%
DSP ML Opportunities (Gr)	8.7	2.6%	7.3%	0.0%	-2.3%
Mastergrowth 1993	16.6	2.6%	8.6%	-16.1%	7.7%
GIC D'MAT	8.0	2.3%	8.6%	-21.8%	-25.8%
GIC Growth Plus II	14.2	2.3%	9.0%	-5.6%	6.8%
Sun F&C Emerg Tech (Gr)	6.2	2.1%	6.3%	0.0%	-27.3%
GIC Fortune 1994	6.5	2.0%	8.0%	-23.1%	-6.3%
Boinanza Exclusive Gr	7.1	2.0%	11.9%	-19.7%	-3.5%
Tata Pure Equity	12.7	2.0%	7.1%	17.9%	47.4%
K P Bluechip (Gr)	22.8	2.0%	8.1%	6.6%	28.5%
K P Prima Plus (Gr)	21.5	1.9%	4.5%	-12.5%	15.1%
Mastergain 1992	10.8	1.9%	6.9%	-17.6%	2.5%
UGS 10000	10.7	1.8%	3.0%	-15.7%	3.7%
IL&FS Gr & Val (Gr)	12.9	1.7%	5.3%	-3.9%	6.6%
Sun F & C Value (Gr)	19.9	1.7%	6.7%	-13.9%	26.6%
Sundaram Growth	13.1	1.6%	4.9%	-6.3%	19.5%
Templeton Growth Fund	12.0	1.5%	6.3%	2.6%	7.3%
JM Equity Fund (Gr)	10.2	1.5%	5.8%	-17.1%	1.0%

*CAGR=Compounded Annual Growth Rate

This seems to indicate that old economy stocks maybe down, but they aren’t out. Most funds have cut down exposure to old economy at the expense of TMT. Those funds that have kept the faith in old economy have done so because they believe that the TMT story cannot last forever, and given the way dotcoms have been falling these days, that may even be true!

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