The BSE Sensex closed the week at 6,443 points, down by 257 points (3.83%). The S&P CNX Nifty ended the week down by 94 points (4.45%) to close at 2,015 points.
Investment experts advise investors to minimise risk by investing in a basket of investment instruments.
Gold happens to be one of them for its inflation-hedging prowess. But it should form a part of investors' portfolio only to the extent that their asset allocation permits them.
Leading Diversified Equity Funds
| Diversified equity funds | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | Incep. | SD | SR |
| JM EQUITY & DERIVATIVE | 10.04 | 0.18% | NA | NA | NA | 0.20% | NA | NA |
| PRINCIPAL FOCUSSED ADV. | 9.64 | -2.63% | NA | NA | NA | -2.63% | NA | NA |
| PRINCIPAL DIV. YIELD | 11.21 | -3.03% | 0.90% | NA | NA | 12.10% | 4.31% | 0.46% |
| CHOLA GROWTH | 16.35 | -3.08% | -1.39% | 21.29% | 25.48% | 40.96% | 6.47% | 0.59% |
| GIC GROWTH II | 22.4 | -3.11% | -2.61% | 28.37% | 44.05% | 8.47% | 6.08% | 0.49% |
The last week, like the week before, was no different for schemes from the diversified equity funds segment. Mutual fund NAVs fell sharply.
JM Equity and Derivative (0.18%) was the only scheme, which managed to post positive returns. Principal Focussed Advantage (-2.63%) took the number two spot with Principal Dividend Yield (-3.03%) sitting at number three.HDFC Top 200 (-3.72%), HSBC Equity (-4.14%) and Franklin India Bluechip (-4.61%), all fared poorly.
Yet another IPO beckons the mutual fund investor! Fidelity Equity Fund is the latest IPO to hit the market. Personalfn has come out with a clear view on the same.
Leading Debt Funds
| Debt funds | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | Incep. | SD | SR |
| DEUTSCHE DYN. BOND | 10.26 | 0.35% | 0.26% | 3.30% | 2.33% | 1.95% | 1.03% | -0.37% |
| DEUTSCHE PREM. BOND | 11.18 | 0.31% | 0.38% | 0.93% | 1.07% | 1.64% | 0.96% | -0.06% |
| TEMPLETON |
23.37 | 0.24% | 0.38% | 1.16% | -0.07% | 11.53% | 0.83% | -0.24% |
| ALLIANCE INCOME | 23.09 | 0.22% | 0.23% | 1.11% | 0.55% | 10.94% | 0.84% | -0.24% |
| PRU ICICI FLEX INCOME | 12.16 | 0.19% | 0.35% | 1.69% | 2.12% | 8.05% | 0.67% | -0.17% |
Debt funds, unlike their diversified equity counterparts, managed to stay positive. The 10-year GOI remained unchanged at 6.67%. Schemes from the Deutsche stable hogged the limelight this week.
Deutsche Dynamic Bond (0.35%) led from the front closely followed by Deutsche Premier (0.31%) and Templeton Income Builder (0.24%).
Investors should also keep an eye on inflation as it plays a role in determining the 'real rate of return'. With oil prices on a northward journey, concerns have been raised about its impact on inflation and in effect the debt market returns.
Leading Balanced Funds
| Balanced funds | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | Incep. | SD | SR |
| UTI VARIABLE INV. ILP | 12.29 | -1.19% | -0.91% | 6.78% | 10.64% | 18.45% | 3.44% | 0.37% |
| SUNDARAM BAL G | 20.29 | -1.50% | -0.20% | 12.56% | 27.20% | 15.69% | 4.71% | 0.52% |
| KOTAK BALANCE | 17.22 | -2.41% | -1.18% | 21.59% | 41.91% | 16.04% | 5.68% | 0.49% |
| PRINCIPAL BALANCED G | 13.94 | -2.52% | -0.99% | 16.36% | 23.25% | 5.33% | 5.33% | 0.51% |
| BOB BALANCED G | 14.76 | -2.64% | -1.93% | 16.68% | 32.26% | 29.63% | 6.35% | 0.29% |
As balanced funds are linked to equity markets, they too had to face the wrath of falling markets. UTI Variable Investment (-1.19%) emerged as the leader followed by Sundaram Balanced (-1.50%) and Kotak Balanced (-2.41%).
If markets correct further, risk-taking investors should use this opportunity to increase their allocations to equity/balanced funds. Investors who have taken the SIP route, will stand to benefit from falling markets in any case.
Learn how the Union Budget 2005-06 impacts you. For the latest issue of Money Simplified absolutely FREE!Click here!