Leading Diversified Equity Funds
| Diversified Equity Schemes | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | 3-Yr | Incep. | SD | SR |
| TAURUS STARSHARE | 12.02 | 7.13% | -10.37% | 38.80% | 106.12% | 10.62% | 1.16% | 7.82% | 0.38% |
| IL&FS DYNAMIC G | 15.35 | 7.04% | -2.54% | NA | NA | NA | 57.92% | 7.60% | 1.16% |
| K 30 G | 25.41 | 6.62% | 1.19% | 60.55% | 111.87% | NA | 107.39% | 5.92% | 0.98% |
| TATA EQUITY OPP. INC. | 14.37 | 6.62% | 4.28% | 85.67% | 195.85% | 35.53% | 11.20% | 7.75% | 0.58% |
| SUNDARAM SEL. MIDCAP | 23.98 | 6.45% | -9.40% | 53.77% | 130.93% | NA | 77.64% | 7.60% | 0.59% |
(Standard deviation indicates by how much the values have deviated from the mean of the values. It measures by how much the investor has diverged from the mean return either upwards or downwards. It highlights the element of risk associated with the fund.)
A good week at the equity markets translated into strong performances for diversified equity funds. Taurus Starshare (7.13 per cent) emerged as the week's top performer followed by IL&FS Dynamic (7.04 per cent). Most of the week's top performers also displayed high standard deviation figures, a cause for concern from the investor's perspective. Category leaders Franklin India Bluechip (4.79 per cent) and HDFC Top 200 (4.01 per cent) had a modest week.
We have consistently advocated that investors should book profits at regular intervals. But booking profits is half the work done, more importantly investors should gainfully utilise the same. In uncertain times when no one seems to know where the markets are headed investors would do well to exercise caution. Its tax-planning season and investing in tax-savings instruments will make a lot of sense at this stage.
Equity linked savings schemes (ELSS) and National Savings Certificates (NSC) in particular stand out as feasible options. ELSS is possibly the only investment avenue which combines market linked returns with tax benefits. Similarly NSC which offers tax benefits under Section 88 and Section 80L coupled with an attractive interest rate of 8 per cent per annum emerges as a strong contender. Since the rate of return is locked over the entire tenure it has an edge over comparable avenues like PPF. A more innovative means of utilising gains could involve investing the proceeds in a self-occupied house propertyand avoiding the long-term capital gains liability as well.
This week's dampener in the debt markets was the news that a market stabilisation fund would be set up by the government. The fund would be used to suck surplus liquidity from the markets by issuing bonds. Excess liquidity conditions lead to a rally in bond and G-sec prices which in turn means higher NAVs for income schemes. Even relatively lower inflation figures failed to cheer the markets. The 10-Yr benchmark 7.37 per cent 2014 yield closed at 5.28 per cent (February 13, 2004), 8 basis points higher than the previous close, the 7.27 per cent 2013 yield also rose by 8 basis points to close at 5.26 per cent (February 13, 2004).
Leading Income funds
| Income Schemes | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | Incep. | SD | SR |
| DSP ML FLOATING RATE G | 10.38 | 0.09% | 0.38% | 2.42% | NA | 3.71% | 0.03% | -5.34% |
| TEMPLETON FLOAT LTP G | 11.36 | 0.09% | 0.39% | 2.41% | 5.62% | 6.47% | 0.12% | -0.18% |
| BIRLA FLOATING RATE LTP G | 10.37 | 0.09% | 0.36% | 2.60% | NA | 3.68% | 0.07% | -1.61% |
| PRUICICI FLOATING RATE G | 10.44 | 0.09% | 0.37% | 2.39% | NA | 4.42% | 0.03% | -4.80% |
| DEUTSCHE FLOATING RATE G | 10.14 | 0.08% | 0.35% | NA | NA | 1.39% | 0.04% | -4.98% |
(The Sharpe Ratio is a measure of the returns offered by the fund vis-à-vis those offered by a risk-free instrument)
Conventional plain-vanilla income schemes languished in negative terrain yet again as floating rate schemes made it to the weekly toppers list. DSP ML Floating Rate (0.09 per cent) was the top performer followed by Templeton Float LTP. The returns were largely range bound with little differentiating the top performers.
Leading Balanced Funds
| Balanced Schemes | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | 3-Yr | Incep. | SD | SR |
| K BALANCE | 13.38 | 4.92% | -4.22% | 28.11% | 57.72% | 16.65% | 12.83% | 4.09% | 0.39% |
| MAGNUM BAL | 13.64 | 4.76% | -1.05% | 47.06% | 89.54% | 9.86% | 15.00% | 4.99% | 0.37% |
| CANGANGA | 14.04 | 4.39% | -3.37% | 40.26% | 78.57% | 11.90% | 5.93% | 5.89% | 0.29% |
| BIRLA BALANCE G | 15.62 | 4.06% | -2.25% | 35.59% | 78.64% | 15.26% | 12.63% | 4.76% | 0.39% |
| PRINCIPAL BAL G | 16.69 | 3.99% | -1.53% | 30.29% | 66.83% | 17.14% | 17.18% | 3.87% | 0.46% |
Balanced funds had a reasonably good week powered by a strong performance in the equity markets. K Balance (4.92 per cent) surfaced as the weekly top performer followed by Magnum Balance (4.76 per cent). Leading balanced fund HDFC Prudence (2.72 per cent) had an ordinary week.
Despite the uncertainty these are exciting times for investors with new opportunities opening up all the time. The Reserve Bank of India recently permitted resident individuals (Indians) to remit up to $25,000 per calendar year "for any purpose"; effectively investors can now explore options like equities, mutual funds, real estate funds etc. abroad. However the need to make informed and well-researched choices has never been greater.
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