Leading Diversified Equity Funds
| Diversified Equity Funds | NAV (Rs) | 1-Mth | 3-Mth | 1-Yr | Incep. | SD | SR |
| MAGNUM EMERGING BUS. | 14.57 | 5.27% | 11.73% | - | 42.56% | 7.17% | 0.86% |
| PRINCIPAL DIVIDEND YIELD | 11.40 | 2.15% | 2.33% | - | 14.00% | 3.04% | 0.71% |
| CHOLA MID CAP | 14.90 | 1.50% | 7.98% | - | 44.69% | 3.10% | 1.40% |
| BIRLA MIDCAP | 32.48 | 1.03% | 5.56% | 53.14% | 61.44% | 5.42% | 0.35% |
| MAGNUM CONTRA | 15.98 | 0.88% | 9.60% | 82.05% | 26.88% | 6.87% | 0.53% |
(The Sharpe Ratio is a measure of the returns offered by the fund vis-à-vis those offered by a risk-free instrument) (Standard deviation highlights the element of risk associated with the fund.)
Keeping with the trend witnessed in the recent past, funds investing predominantly in the mid cap segment dominated the diversified equity funds segment. Magnum Emerging Business (5.27 per cent) emerged as the top performing diversified equity fund, an impressive performance considering that a large number of its peers were languishing in negative terrain. Principal Dividend Yield (2.15 per cent) and Chola Mid Cap (1.50 per cent) occupied second and third positions respectively.
The category leaders had a tough month as well -- HDFC Top 200 (-0.91 per cent), HSBC Equity (-2.88 per cent) and Franklin India Bluechip (-3.22 per cent) delivered negative returns.
Sadly most investors start seeking information about fund managers and their management style only when the markets hit a rough patch. Investors must remember at all times that despite the important role played by the fund manager, he is not the be-all and end-all of the fund. Having said that investors should be aware of the parameters on which a fund manager can be assessed.
Leading Debt Funds
| Debt Funds | NAV (Rs) | 1-Mth | 3-Mth | 1-Yr | Incep. | SD | SR |
| DEUTSCHE PREMIER BOND | 11.19 | 0.68% | 0.91% | 0.80% | 1.67% | 0.70% | -0.60% |
| UTI - BOND ADVANTAGE | 17.31 | 0.65% | 1.60% | 0.37% | 10.04% | 0.70% | -0.67% |
| PRU ICICI INCOME | 19.72 | 0.63% | 1.12% | 0.25% | 10.53% | 0.64% | -0.75% |
| DEUTSCHE DYNAMIC BOND | 10.26 | 0.59% | 1.25% | 1.83% | 1.91% | 0.85% | -0.44% |
| BIRLA BOND INDEX | 10.68 | 0.58% | 1.61% | -0.63% | 3.21% | 0.81% | -0.64% |
It was a modest month for funds from the debt funds segment. Rising oil prices spooked the debt markets and bond yields surged northwards. Bond yields and prices share an inverse relation with rising yields translating into lower prices and net asset value for investors. Going forward, if inflation does become an area of concern due to the oil crisis and increased spending/investment by businesses, it would make sense for investors to remain invested in short-term mutual funds, especially of the floating rate variety
Deutsche Premier Bond (0.68 per cent) surfaced as the top performing fund followed by UTI Bond Advantage (0.65 per cent).
Leading Balanced Funds
| Balanced Funds | NAV (Rs) | 1-Mth | 1-Yr | 3-Yr | Incep. | SD | SR |
| MAGNUM BALANCED | 18.66 | 0.86% | - | - | 9.06% | 1.92% | 0.88% |
| SUNDARAM BALANCED | 20.46 | 0.40% | 22.43% | 26.41% | 15.83% | 3.87% | 0.13% |
| PRU ICICI BALANCED | 19.77 | 0.00% | 26.25% | 28.60% | 14.02% | 4.83% | 0.16% |
| ALLIANCE 95 FUND | 100.40 | -0.22% | 22.36% | 28.45% | 26.59% | 5.06% | 0.16% |
| BIRLA BALANCE | 17.59 | -0.45% | 13.70% | 24.75% | 12.31% | 4.75% | 0.09% |
The downswing in the equity markets had its impact on the balanced funds segment as well with a large number of funds delivering negative returns. March 2005 proved to be a very profitable month for investors in schemes from the SBI Mutual Fund; akin to the diversified equity funds segment, a scheme from the same fund house i.e. Magnum Balanced (0.86 per cent) topped the balanced funds category. Category leader HDFC Prudence (-0.48 per cent) had a poor month.
The equity market's behaviour in March 2005 was a reminder of how turbulent times can test investors' resolve. What investors need to tide over such difficult times is sound and professional advice. They must learn to steer clear of investment agents masquerading as financial planners.
A case in point being recent times when a large number of investment advisors have been persuading investors to get invested in mutual funds IPOs (especially of the flexi/multi cap variety) irrespective of the investor's risk appetite. Rest assured such advisors only have their personal interests at heart.
Seek sound investment advice; it will take you a step closer to insulating your portfolio from the market's tumultuous behaviour.
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