It was another good week for equity markets, to follow up last week's impressive performance. The BSE Sensex posted a growth of 1.91% to close at 5,170 points, while the S&P CNX Nifty appreciated by 1.87% to end at 1,632 points. Good corporate results played their part in adding to the enthusiasm.
Leading Diversified Equity Funds
| Diversified Equity Funds |
NAV (Rs) |
1-Wk |
1-Mth |
1-Yr |
3-Yr |
Incep. |
SD |
SR |
| SUNDARAM SELECT MIDCAP |
24.58 |
3.03% |
12.96% |
75.68% |
NA |
57.55% |
8.14% |
0.43% |
| MAGNUM GLOBAL |
12.04 |
2.91% |
13.37% |
87.75% |
34.33% |
6.34% |
7.10% |
0.42% |
| MAGNUM MULTIPLIER 93 |
14.61 |
2.81% |
8.22% |
63.72% |
24.97% |
5.25% |
NA |
NA |
| DEUTSCHE ALPHA EQUITY G |
19.88 |
2.63% |
7.43% |
70.06% |
NA |
23.85% |
8.12% |
0.44% |
| SUNDARAM SELECT FOCUS G |
21.49 |
2.57% |
6.63% |
53.09% |
NA |
46.82% |
6.60% |
0.43% |
(Data sourced from Credence Analytics.)
(NAV data as on July 30, 2004. Growth over 1-Yr is compounded annualised)
(Standard deviation indicates by how much the values have deviated from the mean of the values.
It measures by how much the investor has diverged from the mean return either upwards or downwards.
It highlights the element of risk associated with the fund.)
Funds that invest predominantly in midcap stocks made it to the weekly top performers list. Sundaram Select Midcap (3.03%) was the topper followed by Magnum Global (2.91%). This week Personalfn's premium mutual fund advisory service FundSelect also focuses on a midcap fund, Birla Midcap Fund. It was a mixed week for the category leaders, while Franklin India Bluechip Fund (2.16%) had a good week; it was a modest one for HDFC Top 200 (1.01%).
Funds which follow the value style of investing present an interesting proposition for investors. Value style investing involves identifying good stocks that trade at a steep discount to their fair value. However, the value fund category in the country is still evolving. These funds are slow both on the rise and during the fall in stock markets. Funds like HDFC Capital Builder have proven their prowess even in the midst of a bear phase.
Leading Income Funds
| Income Funds |
NAV (Rs) |
1-Wk |
1-Mth |
6-Mth |
1-Yr |
Incep. |
SD |
SR |
| BIRLA FLOATING RATE LTP G |
10.59 |
0.09% |
0.37% |
2.25% |
5.02% |
5.07% |
0.06% |
-2.09% |
| HDFC FLOATING LTP G |
10.70 |
0.09% |
0.36% |
2.02% |
4.16% |
4.44% |
0.04% |
-5.04% |
| GRINDLAYS FLOAT. RATE PLAN |
10.15 |
0.09% |
0.37% |
NA |
NA |
1.47% |
0.02% |
-8.12% |
| MAGNUM INCOME FLOAT. RATE |
10.02 |
0.08% |
NA |
NA |
NA |
0.15% |
NA |
NA |
| TEMPLETON FLOAT LTP G |
11.61 |
0.08% |
0.37% |
2.39% |
4.90% |
6.16% |
0.10% |
-0.76% |
(Data sourced from Credence Analytics.)
(NAV data as on July 30, 2004, Growth over 1-Yr is compounded annualised)
(The Sharpe Ratio is a measure of the returns offered by the fund vis-à-vis those offered by a risk-free instrument)
There was no cause for cheer for investors in the debt markets. Yields continued to inch northwards, pushing down bond prices. The benchmark 7.37% 2014 GOI yield closed at 6.13% (July 30, 2004), a whopping 20 basis points above the previous weekly close. The importance of floating rate funds was underlined yet again as they made it to the weekly toppers. Birla Floating Rate (0.09%) was the weekly topper, while HDFC Floating Rate Fund and Grindlays Floating Rate Fund occupied the second and third positions respectively.
Leading Balanced Funds
| Balanced Funds |
NAV (Rs) |
1-Wk |
1-Mth |
1-Yr |
3-Yr |
Incep. |
SD |
SR |
| CANTRIPLE |
29.60 |
2.00% |
12.29% |
32.14% |
20.78% |
7.31% |
5.79% |
0.26% |
| KOTAK BALANCE |
13.46 |
1.87% |
6.25% |
34.63% |
22.41% |
11.63% |
5.28% |
0.34% |
| ESCORTS BAL G |
20.92 |
1.73% |
8.84% |
43.79% |
26.72% |
24.99% |
5.65% |
0.33% |
| ALLIANCE 1995 G |
80.21 |
1.11% |
5.41% |
39.67% |
25.63% |
25.68% |
5.42% |
0.36% |
| PRU ICICI BAL G |
15.57 |
1.10% |
6.35% |
35.39% |
22.64% |
10.42% |
5.15% |
0.36% |
(Data sourced from Credence Analytics.)
(NAV data as on July 30, 2004. Growth over 1-Yr is compounded annualised)
The balanced funds segment benefited from the rising equity markets. Cantriple (2.00%) surfaced as the weekly topper, while Kotak Balance (1.87%) came in at second position. Category leader HDFC Prudence (-0.02%) had a poor week.
The role played by an investment advisor has assumed significant importance in recent times. The advisor should not only help you with investments but also enable you to monitor and track them. Changing market conditions have an impact on your portfolio, and the advisor must counsel you on the future course of action. For example, we have witnessed consolidation in the mutual fund industry and if you are impacted by it, your advisor should outline a plan for you in view of this development. Several schemes have been merged, but most investors have been clueless on how they should react to the situation.
Exercise caution while selecting your investment advisor; informed and timely advice is vital for financial success.
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