• APRIL 25, 2000

Mutual Funds redemptions continue unabated…

The markets are showing no signs of letting up (down 146 points yesterday to 4,511 points). Software/convergence stocks were languishing once again, with funds over-exposed to software, faring no better. All this translated into more redemptions.

At face value it is not very clear whether the redemptions are at the corporate level or at the retail level. Industry sources are of opinion that it's the corporates that are exiting in large numbers as they had parked surplus cash in mutual funds before March 31st 2000, for balance sheet purposes. However, if the markets continue to behave as they have been, it won't be long before retail investors also exit in a big way.

Some of the leading growth funds that continue to witness erosion in their NAVs is mentioned below:

Schemes Nav (Rs) 1-week 1-month 12-months Since
Alliance Equity Fund (Gr. Plan) 40.1 -17.6% -27.4% 166.9% 132.7%
Birla MNC Fund (Gr.) 31.3 -11.6% -11.4% 129.9% 23.0%
Birla Advantage Fund 46.4 -17.4% -22.4% 129.1% 41.9%
DSP Merrill Lynch Equity Fund 21.3 -13.5% -26.5% 51.0% 39.5%
K 30 21.5 -12.1% -19.1% 78.5% 74.4%
Kothari Pioneer Bluechip Fund (Gr.) 24.4 -10.2% -14.6% 104.4% 33.0%
Kothari Pioneer Prima Fund (Gr.) 25.5 -11.0% -14.4% 72.9% 15.8%
Kothari Pioneer Prima Plus (Gr.) 25.4 -14.0% -16.8% 95.8% 20.7%
Prudential ICICI Gr. Plan (Gr.) 25.8 -16.3% -26.2% 93.9% 68.5%
Magnum Global Fund 13.9 -19.4% -32.1% 69.0% 9.0%
Magnum Multiplier Plus 1993 24.6 -21.9% -32.6% 85.8% 15.5%
Magnum Equity Fund 19.8 -23.3% -34.0% 127.7% 20.4%

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