Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Get a load of your mutual fund - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Mar 18, 2002

    Get a load of your mutual fund

    Before you decide to invest in a particular mutual fund scheme, it’s a good idea to get an overview of the fund house as a whole. If the other schemes of the fund house are doing well, then you could reach a level of certainty about your proposed investment in the fund house.

    Often investments in a particular fund are dictated by sentiment or your agent’s ‘tip’ (so he can collect his attractive commission) or sheer impulse. That’s the reason a lot of mutual fund investors burnt their fingers in the past be it during Morgan Stanley’s IPO (initial public offering) in 1993, or the bull runs in 1992 and 1994, or the tech bubble in 1998-2000. Most of these investments were made on sentiment and investors were misled by the excessive noise around them. When these investments bombed, there was a major disconnect in the minds of investors and they left the industry in hordes disillusioned by mutual fund as investment avenue.

    A little research always helps in assessing your proposed investment. You would not give Rs 10,000 away to anyone without inquiring about his credentials or experience, be it a doctor, a lawyer or even a car mechanic. There is no reason for you to give Rs 10,000 away to an XYZ Mutual Fund without looking into the performance and credentials of the fund house.

    Get a load of this!
    SCHEME NAV (Rs) NAV DATE 1-M (%) 6-M (%) 1-YR (%) INC (%)
    ALLIANCE 1995 D 31.03 15-Mar 2.4 35.9 7.6 27.1
    ALLIANCE 1995 G 48.37 15-Mar 2.4 35.9 7.6 26.4
    ALLIANCE BASIC D 10.47 15-Mar 7.1 54.4 24.8 8.1
    ALLIANCE BASIC G 10.47 15-Mar 6.9 54.2 24.6 8.1
    ALLIANCE BUY D 5.18 15-Mar 2.0 16.1 -1.9 -27.6
    ALLIANCE BUY G 5.18 15-Mar 2.0 16.1 -1.9 -27.6
    ALLIANCE CASH D 1,000.41 15-Mar 0.5 3.3 7.1 7.2
    ALLIANCE CASH G 1,385.47 15-Mar 0.6 3.5 8.0 8.9
    ALLIANCE EQUITY D 17.42 15-Mar 3.4 48.8 1.5 31.9
    ALLIANCE EQUITY G 27.56 15-Mar 3.4 48.7 1.5 31.9
    ALLIANCE GSEC LT D 1,136.07 15-Mar -0.5 12.7 20.3 14.7
    ALLIANCE GSEC LT G 1,414.19 15-Mar -0.5 13.5 22.5 16.0
    ALLIANCE GSEC ST D 1,030.09 15-Mar -0.1 6.1 10.4 9.8
    ALLIANCE GSEC ST G 1,283.90 15-Mar -0.1 6.7 12.0 11.1
    ALLIANCE INC (QDIV) 9.96 15-Mar -0.6 - - -0.6
    ALLIANCE INC D 11.03 15-Mar -0.5 9.5 16.0 12.5
    ALLIANCE INC G 18.75 15-Mar -0.4 10.2 16.8 13.3
    ALLIANCE MIP G 15.05 15-Mar 0.4 11.2 13.8 16.0
    ALLIANCE MIP MD 10.37 15-Mar 0.3 10.7 12.5 14.1
    ALLIANCE MIP QD 10.6 15-Mar 0.4 10.0 11.8 14.0
    ALLIANCE NEW MIL D 4.6 15-Mar 5.3 76.2 -14.0 -44.3
    ALLIANCE NEW MIL G 4.6 15-Mar 5.3 76.9 -13.9 -44.3
    ALLIANCE TAX 96 58.35 15-Mar 5.4 59.7 11.3 44.1
    (Returns over 1-Yr are annualised)

    By way of illustration we have taken the schemes of Alliance Capital Mutual Fund, one of the most aggressive private fund houses in the country. A cursory glance at the fund house’s schemes reveals that its income funds have done far better than its equity funds, and this despite the fact that Alliance is known more for its equity funds than its income funds. The fund house’s flagship equity (Alliance Equity) and balanced (Alliance 1995) products with 1.5% and 7.6% (absolute) growth respectively have underperformed its peers like Pioneer ITI, Templeton, HDFC and Zurich India. Its sectoral offering - Alliance Basic with a 24.6% (absolute) appreciation has done well. All its income offerings (Alliance Income, Alliance Cash, Alliance Gsec) have performed well in line with the performance of its peers.

    Figures like this can help you assess the fund house’s credentials. For instance, if you were planning to buy an equity scheme from Alliance Capital, the above table would tell you that its not really done much, at least not as much as it ought to have done. This may encourage you to check out some of its peers that we mentioned above to see how they have done as a fund house. A little study and research doesn’t hurt anyone. In today’s complex financial world, its better to be safe than to be sorry.

    If you are in Mumbai and are interested in mutual funds, bonds or other investment products, please register here.



    Equitymaster requests your view! Post a comment on "Get a load of your mutual fund". Click here!


    More Views on News

    The Right Financial Advisor Is Around the Corner (Outside View)

    Mar 10, 2016

    An opportunity to find an impeccably trustworthy and competent financial guardian is in the offing.

    Why financial planning should be dull and boring (Mutual Fund Corner)

    Feb 29, 2016

    Most financial planners come out as whiz kids who throw around financial jargon. But financial planning can be actually easy, provided one follows a disciplined approach.

    What Are E-Wallets And How To Use Them (Mutual Fund Corner)

    Feb 12, 2016

    PersonalFN highlights the benefits of parking a portion of your expenses in e-wallets and using them efficiently.

    Is Consumption Boom Over In India? (Mutual Fund Corner)

    Feb 2, 2016

    Mutual funds take a bearish call on the FMCG sector. The sector has started playing out due to a combination of slower growth and expensive valuations.

    How to Find a Saint Amongst Sinners? (Mutual Fund Corner)

    Feb 1, 2016

    Ethical practices help build long lasting relationships, and healthy long-term business relationships are often mutually rewarding. But PersonalFN is of the view that the financial services industry in India seems to have forgotten this.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms