Leading Diversified Equity Funds
| Diversified Equity Schemes | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | 3-Yr | 5-Yr | Incep. | SD | SR |
| PRUICICI DYNAMIC PLAN | 18.87 | 2.2% | 8.8% | 65.5% | 74.9% | NA | NA | 84.9% | 6.70% | 0.63% |
| TATA EQUITY OPPORTUNITY | 13.35 | 2.1% | 15.5% | 96.0% | 137.4% | 28.4% | 29.9% | 8.4% | 7.27% | 0.64% |
| TATA PURE EQ | 19.07 | 2.0% | 9.4% | 85.6% | 112.2% | 15.1% | 32.5% | 28.7% | 6.94% | 0.38% |
| DISCOVERY STOCK | 6.26 | 1.8% | 15.1% | 62.2% | 69.6% | -2.6% | 13.9% | -4.9% | NA | NA |
| HDFC CAPITAL BLD. G | 18.43 | 1.6% | 7.8% | 56.7% | 78.6% | 18.1% | NA | 8.9% | 5.21% | 0.47% |
(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.)
Equity funds had a mediocre week with top funds delivering returns in the range of 1.6 per cent to 2.2 per cent. Pruicici Dynamic Plan (2.2 per cent) and Tata Equity Opportunity (2.1 per cent) surfaced as the week's leading performers. Funds with larger holdings in cash and call money were affected lesser by the fall in equity markets.
It was yet another dull week at the debt markets and the sentiment continued to be negative. The Reserve Bank of India's guidelines on banks' investments in unlisted debt and its implication on mutual fund holdings added to the uncertainty. The benchmark 10-year 7.27 per cent GOI yield closed at 5.10 per cent (November 21, 2003), 1 basis point below the previous close.
Leading Income Funds
| Income Schemes | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | 3-Yr | 5-Yr | Incep. | SD | SR |
| ESCORTS INC PLAN G | 19.36 | 0.3% | 0.9% | 3.9% | 11.4% | 12.4% | 12.6% | 12.7% | 0.46% | 0.83% |
| GRINDLAYS FLOATING G | 10.40 | 0.1% | 0.4% | 2.6% | NA | NA | NA | 4.0% | 0.03% | -3.91% |
| PRUICICI FLOATING RATE G | 10.33 | 0.1% | 0.4% | 2.5% | NA | NA | NA | 3.3% | 0.03% | -4.18% |
| TEMPLETON FLOAT LTP G | 11.23 | 0.1% | 0.4% | 2.4% | 5.9% | NA | NA | 6.7% | 0.10% | -0.11% |
| DSP ML FLOATING RATE G | 10.27 | 0.1% | 0.4% | 2.5% | NA | NA | NA | 2.6% | 0.01% | -12.23% |
(The Sharpe Ratio is a measure of the returns offered by the fund vis-à-vis those offered by a risk-free instrument)
Income schemes performances this week duplicated last week's performance. Escorts Income Plan (0.3 per cent) emerged as the topper for the second week in a row. Floating rate funds have been dominating proceedings for quite some time now. Investors should ensure that a part of their holdings are invested in floating rate funds to provide a hedge against volatility. For income fund investors the right strategy is likely to be a good mix of income funds and floating rate funds with rational expectations.
Leading Balanced Funds
| Balanced Schemes | NAV (Rs) | 1-Wk | 1-Mth | 6-Mth | 1-Yr | 3-Yr | 5-Yr | Incep. | SD | SR |
| TATA BALANCED | 20.03 | 1.9% | 8.3% | 49.1% | 67.8% | 13.9% | 22.6% | 14.0% | 4.41% | 0.42% |
| ALLIANCE 1995 G | 70.36 | 1.2% | 4.0% | 40.2% | 57.7% | 9.4% | 29.2% | 26.1% | 3.99% | 0.44% |
| PRUICICI BAL G | 14.20 | 0.6% | 2.6% | 39.2% | 52.9% | 14.3% | NA | 9.8% | 3.99% | 0.44% |
| K BALANCE | 14.27 | 0.6% | 3.1% | 31.6% | 50.4% | 13.1% | NA | 10.0% | 3.28% | 0.41% |
| SUN F&C BAL G | 10.28 | 0.4% | 4.6% | 51.4% | 53.0% | 9.0% | NA | -0.9% | 4.91% | 0.30% |
Volatile equity markets and dull debt markets took their toll on balanced funds. Barring a handful, most funds found themselves in negative territory. Category leader HDFC Prudence (-0.1 per cent) had a poor week as well. However in spite of this lackluster performance, from a long-term perspective balanced funds play an important role. Their intrinsic ability to combine growth and stability will always keep them in the reckoning.
The markets have left most investors baffled with their recent performance. When the markets were on a rapid ascent we had recommended that investors should book a part of their profits. At the 5,000 plus levels investors were asked to exercise caution, and during the subsequent correction phase hybrid instruments like monthly income plans (MIPs) were proposed to provide stability.
Now that the markets have 'corrected' significantly, it looks like a good time for investors to enter equity funds in small proportions. While substantial investments should be avoided, investors with risk tolerance would do well to accumulate at these levels and increase equity allocations if markets correct further.
