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.
Mutual fund investors clock modest gains - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Sep 25, 2004

    Mutual fund investors clock modest gains

    The markets finally lost some steam after surging for 4 weeks in a row. The BSE Sensex posted a weekly loss of 0.59% to close at 5,528 points while the S&P CNX Nifty was down by 0.63% to close at 1,723 points.

    Leading Diversified Equity Funds
    Diversified Equity Funds NAV (Rs) 1-Wk 1-Mth 1-Yr 3-Yr Incep. SD SR
    TAURUS STARSHARE 13.62 3.50% 10.37% 56.19% 46.50% 2.30% 9.25% 0.39%
    DISCOVERY STOCK 6.95 3.12% 10.67% 37.08% 28.08% -3.47% NA NA
    RELIANCE VISION 68.71 2.31% 11.72% 49.27% 78.80% 23.98% 7.39% 0.57%
    BOINANZA EXCL 14.70 2.30% 13.08% 22.34% 43.63% 9.64% NA NA
    UTI THEMATIC MID CAP 11.81 2.16% 11.00% NA NA 16.24% 7.49% 0.36%
    (Source: Credence Analytics. NAV data as on Sept 24, 2004. Growth over 1-Yr is compounded annualised)
    (The Sharpe Ratio is a measure of the returns offered by the fund vis--vis those offered by a risk-free instrument)
    (Standard deviation highlights the element of risk associated with the fund.)

    Top performers in the equity funds segment managed to deliver positive returns despite falling markets. Taurus Starshare (3.50%) topped the list followed by Discovery Stock (3.12%). Funds like Reliance Vision (2.31%) and UTI Thematic Midcap (2.16%) which predominantly invest in the midcap segment also featured in the list.

    It was a mediocre week for the category leaders - HDFC Top 200 (-0.43%) and Franklin India Bluechip (-1.45%); HSBC Equity Fund (0.21%) ended the week in positive terrain.

    The sharp rise recently witnessed in the markets brought to light some interesting facts. We at Personalfn decided to put the performance of sector funds under the scanner. Most investors would believe that sector funds, which are essentially high risk-high return propositions, would have gained significantly from the sharp rise in markets. However the results of our study showed that diversified equity funds outperformed sector funds during the period under consideration. Sector fund investors need to evaluate if the disproportionate risk levels borne by them are worth the effort.

    Leading Income Funds
    Income Funds NAV (Rs) 1-Wk 1-Mth 6-Mth 1-Yr Incep. SD SR
    JM INCOME 26.34 0.52% 0.87% -1.10% 1.55% 10.74% 1.08% 0.04%
    DSP ML BOND 22.57 0.43% 1.25% -1.24% 0.92% 11.55% 1.11% 0.01%
    DEUTSCHE PREM. BOND 11.08 0.39% 0.82% -0.18% 2.95% 1.58% 0.93% 0.08%
    PRU ICICI INC 19.40 0.39% 0.74% -1.32% 0.68% 11.17% 1.01% -0.01%
    DEUTSCHE DYN. BOND 9.93 0.38% 0.63% -1.31% NA -0.52% 1.08% -0.53%
    (Source: Credence Analytics. NAV data as on Sept 24, 2004. Growth over 1-Yr is compounded annualised)

    The benchmark 7.37% 2014 GOI yield closed at 6.03% (September 24, 2004) 8 basis points below the previous weekly close. Bond yields and prices share an inverse relationship with higher bond prices translating into a higher net asset value (NAV) for the investors.

    Conventional income funds came to the fore; JM Income (0.52%) emerged as the leader in the income funds segment, while DSP ML Bond (0.43%) occupied the second position.

    Leading Balanced Funds
    Balanced Funds NAV (Rs) 1-Wk 1-Mth 1-Yr 3-Yr Incep. SD SR
    UNIT SCHEME 95 32.68 1.40% 7.71% 35.77% 28.78% 19.15% 4.70% 0.45%
    BOB BALANCED 12.65 1.20% 8.03% 27.01% NA 26.45% 7.06% 0.23%
    KOTAK BALANCE 14.61 1.06% 6.35% 34.56% 29.97% 13.15% 5.48% 0.40%
    CANGANGA 11.43 0.79% 7.63% 29.69% 27.22% 4.99% 6.84% 0.34%
    LIC BALANCE 24.81 0.78% 6.61% 19.74% 17.83% 5.30% 4.43% 0.27%
    (Source: Credence Analytics. NAV data as on Sept 24, 2004. Growth over 1-Yr is compounded annualised)

    Balanced funds had a modest week. Unit Scheme 95 (1.40%) surfaced as the top performer followed by BOB Balanced (1.20%). Category leader HDFC Prudence (0.03%) had a poor week.

    With equity markets showing some volatility, the one-way movement of the indices over the last 4 weeks has been disturbed. Investors who had invested in equity funds based on the strong undercurrent that markets had shown over the past few weeks will no doubt be disappointed at this. Moreover, there is nothing to suggest that this fall, although marginal, is a temporary one, and markets will continue on their northbound journey.

    Investors, who cannot take a call either ways, should consider investing in equity markets at regular intervals through the SIP route (systematic investment plan). Most mutual funds offer this plan and to make it even more lucrative for investors they have waived off entry loads on SIP investments.

    Personalfn offers personalised services for investments (including mutual funds, IPOs and bonds), home loans and life insurance in Mumbai. For free no-obligation consultancy, please click here. Not in Mumbai? You can still subscribe to FundSelect, our mutual fund advisory service!



    Equitymaster requests your view! Post a comment on "Mutual fund investors clock modest gains". 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

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    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.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    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.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    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