• APRIL 5, 2000

Growth funds witness freefall in NAVs

The sustained fall in stock market indices over the past couple of weeks has taken its toll on growth funds. A study conducted by equitymaster.com reveals some interesting facts about India's leading growth funds.

The BSE Sensex has been declining steadily since 22nd March 2000, when the Sensex was at 5,202 points. The Sensex closed at 4,689 points yesterday (4th April 2000). The fall of 9.9% in the Sensex in a matter of just 15 days is dramatic to say the least. While retail investors are not too pleased with this, fund managers are facing the heat from nervous investors who are exiting from growth funds in hordes.

Growth SchemeMutual FundNAV growth
(last week)
Alliance 1995 Fund (Growth)Alliance Capital MF-10.0%
Alliance 1995 Fund (Div.)Alliance Capital MF-9.8%
Alliance Equity Fund (Growth)Alliance Capital MF-14.8%
Alliance Equity Fund (Div.)Alliance Capital MF-14.5%
Alliance New Millennium (Growth)Alliance Capital MF-18.7%
Alliance New Millennium (Div.)Alliance Capital MF-18.7%
Birla IT Fund (Growth)Birla Sun Life MF-4.6%
Birla IT Fund (Div.)Birla Sun Life MF-4.6%
Birla MNC Fund (Growth)Birla Sun Life MF-2.7%
Birla MNC Fund (Div.)Birla Sun Life MF-2.7%
DSP Merrill Lynch Equity FundDSP Merrill Lynch MF-9.5%
IL&FS Growth & Value Fund (Ann. Div.)IL&FS MF-3.0%
IL&FS Growth & Value Fund (Growth)IL&FS MF-3.1%
IL&FS Growth & Value Fund (Semi-Ann.)IL&FS MF-11.2%
JM Equity Fund (Div.)JM MF-6.6%
JM Equity Fund (Growth)JM MF-11.6%
K 30Kotak Mahindra MF-10.3%
KP Bluechip Fund (Growth)Kothari Pioneer MF-6.6%
KP Bluechip Fund (Div.)Kothari Pioneer MF-6.7%
KP Infotech Fund (Growth)Kothari Pioneer MF-15.0%
KP Internet Opp. Fund (Growth)Kothari Pioneer MF-4.0%
KP Internet Opport. Fund (Div.)Kothari Pioneer MF-4.0%
KP Prima Plus (Growth)Kothari Pioneer MF-8.9%
KP Prima Plus (Div.)Kothari Pioneer MF-8.9%
Pru ICICI Technology Fund (Growth)Prudential ICICI MF-14.0%
Pru ICICI Technology Fund (Div.)Prudential ICICI MF-14.0%
Magnum Equity FundSBI MF-5.2%
Magnum IT FundSBI MF-8.1%
Sun F & C Value Fund (Growth)Sun F & C MF-7.0%
Sun F & C Value Fund (Div.)Sun F & C MF-7.0%
Tata IT Sector FundTata MF-6.8%
Tata Life Sc & Tech Fund (I)Tata MF-7.9%
Tata Pure Equity FundTata MF-6.6%
Libra LeapTaurus MF-11.1%
Templeton India Growth FundTempleton India MF-4.8%
Zurich India Equity Fund (Growth)Zurich India MF-8.1%
Zurich India Equity Fund (Div.)Zurich India MF-8.1%

While the freefall in major stocks (especially infotech) has hammered growth fund NAVs, mutual fund investors can take this opportunity to enter some of these funds which are now looking cheap. (Ironically panicky investors can't wait to get out.) As the decline in stock prices show no signs of abating, growth funds will get even cheaper.

Meanwhile fund managers are still sweating from the prospect of offloading stocks at lower prices to meet the growing redemption demand, which according to some reports has crossed Rs 25 bn over the past few weeks.

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