Best and worst funds of April 2001
The cat is out of the bag! For the first time since the onset of the
ICE avalanche, the evident signs of slowing growth numbers in the tech
sector have given the market a reason to drop. While the broad market
performance has been a mixed bag, the infotech sector continued to impress
in the year gone-by. In the same breath, the moot talking point has been
the outlook for the next financial year, which is abound with tones of caution.
With the bellwether stock, Infosys projecting a below average growth
estimate, the market came to terms with the fact that even monoliths are
not insulated from the ups and downs of the environment.
Even as the NASDAQ surged with most US tech majors at least meeting street
expectation, the Indian markets failed to track the pied piper. The
systemic risk factors, that have been uniquely ours, received a corrective
pill with the aim to segregate cash and futures markets and move towards
rolling settlement. Reeling under these developments, the Sensex ended the
month with a net loss of 2.36 per cent. But for heavy FII investments, which
pumped another Rs 18 billion for April, the fall would have been lot
sharper.
Equity Diversified
For the first time
in recent memory, active fund management seems to have yielded the desired
result. The 53-fund Value Research category of diversified equity funds out-performed
the benchmark BSE Sensex by losing less at 0.93 per cent. The toppers of this
month have weathered one of the worst market phases, thanks to their
sustained commitment to quality with ample diversification. Reliance
Vision tops its group with a net gain of 3.52 per cent. Backed by a broad-based
portfolio across blue-chip counters, Zurich India Equity surged ahead of
its peers at 3.35 per cent. Kothari Pioneer Prima Plus and KP Bluechip, with their
well-entrenched portfolios across different capitalisation groups, notched
up fresh gains at 3.05 per cent and 2.57 per cent respectively. Templeton India Growth
Fund, with value oriented diversification made it to the top league with a
gain of 2.73 per cent.
There are of course funds, which have grossly
under-performed its category. Taurus Discovery Stock, launched to discover
hidden gems in the primary market, lost a whopping 7.46 per cent. Two diversified
equity funds from SBI AMC, Magnum Multiplier Plus and Magnum Equity are in
the losers' slot yet again. With a third of the corpus apportioned to ICE
coupled with mid cap holdings saw the funds in the red with a loss of
4.73 per cent and 4.15 per cent respectively. Zurich India Capital Builder, with a
diversified yet FMCG-heavy portfolio was trailing its category with a loss
of 3.92 per cent last month.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| Reliance Vision
|
3.52 |
|
Taurus Discovery Stock
|
-7.46 |
| Zurich India Equity
|
3.35 |
|
Magnum Multiplier Plus
|
-4.73 |
| KP Prima Plus |
3.05 |
|
Dhansamriddhi |
-4.31 |
| Templeton IGF |
2.73 |
|
Magnum Equity |
-4.15 |
| GIC D'MAT |
2.68 |
|
Zurich India Capital
Builder |
-3.92 |
| UTI PEF |
2.61 |
|
Birla Advantage
|
-3.35 |
| KP Bluechip |
2.57 |
|
Canglobal |
-3.25 |
| Boinanza Exclusive
|
2.46 |
|
ING Growth Portfolio
|
-3.24 |
| Zurich India Top 200
|
2.33 |
|
Master Plus '91
|
-3.05 |
| Tata Pure Equity
|
2.25 |
|
JM Equity-G |
-2.75 |
| No. of Funds |
53 |
|
|
|
| Sector Average |
-0.93 |
|
|
|
Tax Planning Funds
Equity-linked savings schemes with a diversified equity
portfolio, offer rebate under Section 88. This category of 18 equity
linked savings plans lost 1.72 per cent. Here again, diversification with quality
has worked for Tata Tax Saving Fund (besides a significant cash position)
and Zurich India Taxsaver, which logged a gain of 2.32 per cent and 1.91 per cent,
respectively.
IDBI Principal Tax Saving Fund, pitched in favour of
FMCG, refinery and technology counters, emerged the top loser with a loss
of 8.57 per cent. Magnum Taxgain with its never-ending penchant for technology
stocks shed the maximum at 8.37 per cent.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| Tata Tax Saving Fund
|
2.32 |
|
IDBI Principal Tax Saving
|
-8.57 |
| Zurich India Taxsaver
|
1.91 |
|
Magnum Taxgain |
-8.37 |
| KP Taxshield |
0.91 |
|
Canequity-Tax Saver
|
-7.62 |
| Libra Taxshield '96
|
0.91 |
|
Birla Equity Plan
|
-3.35 |
| Sundaram Taxsaver
|
0.39 |
|
BoB ELSS '96 |
-3.33 |
| No. of Funds |
18 |
|
|
|
| Sector Average |
-1.72 |
|
|
|
Sectoral Funds
Technology
The slowdown virus
has also caught up with this high-paced sector with tech stocks coming
under the hammer earlier in April. However, with bottom fishing at lower
levels, tech stocks attracted fresh buying and recouped a part of their
losses. The category has shed 1.99 per cent on an average though a look at the
month's leaders and laggards bears shows that performance was clearly
linked to quarterly results, aided by a sizeable cash component in some
funds. Thus, funds with higher exposure to Infosys and Satyam failed to
post positive returns. On the other hand, funds with reasonable investment
in Wipro and Hughes Software were in the black. While April saw strong
buying in some of the K-10 stocks like Global Tele, funds now have
negligible holding in these stocks.
Birla IT cruised on the
volatile markets with a 64 per cent cash position to post a net gain of 4.09 per cent in
April. KP Internet Opportunities saw its investments in the Internet
enabled companies buoy it up by 3.03 per cent. IL&FS e-COM shed the maximum at
5.56 per cent. Magnum IT with its amalgam of large and mid cap stocks followed
with a loss of 5.30 per cent.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| Birla IT |
4.09 |
|
IL&FS eCOM Fund
|
-5.56 |
| KP Internet Opportunities
Fund |
3.03 |
|
Magnum IT |
-5.30 |
| Pru ICICI Technology
|
0.91 |
|
DSPML Technology.com
|
-4.80 |
| KP Infotech |
-0.90 |
|
Alliance New Millenium
|
-4.66 |
| Chola Freedom Technology
|
-1.01 |
|
UTI Software |
-4.58 |
| No. of Funds |
12 |
|
|
|
| Sector Average |
-1.99 |
|
|
|
Pharma
Despite a reasonably good show by many a pharma
companies, the three-fund category of pharma funds lost an average 3.61 per cent
last month with the trio quoting below par. UTI Pharma and Healthcare shed
the maximum at 5.62 per cent.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| Magnum Pharma |
-1.70 |
|
UTI Pharma &
Healthcare |
-5.62 |
|
|
|
KP Pharma |
-3.50 |
| No. of Funds |
3 |
|
|
|
| Sector Average |
-3.61 |
|
|
|
FMCG
With flat top line growth for several companies, this category
continues to be in the red with a loss of 1.93 per cent. While KP FMCG held ground
in this market, Magnum FMCG tumbled on the back of a its mid cap heavy
portfolio by 4.81 per cent.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| KP FMCG |
0.00 |
|
Magnum FMCG |
-4.81 |
|
|
|
Pru ICICI FMCG |
-0.99 |
| No. of Funds |
3 |
|
|
|
| Sector Average |
-1.93 |
|
|
|
Equity Speciality
The heterogeneous set of speciality funds shed an average
2 per cent in April. Alliance Basic Industries, with its interest in economy and
restructuring candidates surged by 2.81 per cent, even though it continues to
languish below par. On the other hand, Canexpo with its tech and Infosys'
heavy portfolio tumbled by 4.79 per cent. For JM Basic, the slowing bellwether
Reliance seems to have weighed it down as the NAV slid by 4.29 per cent in
sympathy with the stock. Interestingly, UTI Petro, with a similar
investment theme, suffered NAV erosion of only 1.35 per cent.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| Alliance Basic Industries
|
2.81 |
|
Canexpo |
-4.79 |
| Tata Life Sciences &
Tech |
0.07 |
|
JM Basic |
-4.29 |
| Birla MNC |
-0.74 |
|
UTI Services Sector
|
-4.10 |
| K MNC |
-0.76 |
|
Alliance Buy India
|
-3.75 |
| UTI Petro |
-1.35 |
|
DSPML Opportunities
|
-3.07 |
| No. of Funds |
12 |
|
|
|
| Sector Average |
-2.00 |
|
|
|
Balanced Funds
While the category average of 35 balanced funds managed
a status quo, there has been a stark contrast in performance intra-group.
Tata Young Citizens, the child fund moved up by 3.06 per cent aided by its pro
debt stance. Magnum Balanced, on the other hand, with a predominant equity
exposure shed 2.79 per cent last month.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| JM Balanced-G |
16.19 |
|
Dhanvidya |
-24.14
|
| Canpremium(RO) |
13.31 |
|
Canganga |
-4.92 |
| Dhanraksha '89 |
5.59 |
|
GUP '94 |
-3.89 |
| Tata Young Citizens
|
3.06 |
|
Magnum Balanced
|
-2.79 |
| Tata Balanced |
2.14 |
|
Dhanasahayog |
-2.10 |
| No. of Funds |
35 |
|
|
|
| Sector Average |
0.01 |
|
|
|
Debt Market
It's been a tale of two markets for the month of April. While
there is no end to the spate of negatives for the equity markets, the debt
markets continue with their party with great vigour. With a surfeit of
liquidity and the US Fed rate cut, the Indian bond markets rallied on an
expectation of yet another rate cut. When rates are cut or when
expectation moves towards that end, bond prices gain value, with longer
dated portfolio benefiting more. In this backdrop, the category of debt
funds logged sharp gains in comparison to March.
Medium Term Funds
Debt Funds
The Value Research category of
35 debt funds, which invest in an assortment of bond instruments such as
debentures, gilts and money market instruments gained an average 1.20 per cent
last month. With the rally in the corporate bond segment, medium term bond
funds were on par with their gilt counterparts. Two options from Tata
Income fund - Dividend Half Yearly and Growth lead the pack with a gain of
1.60 per cent and 1.54 per cent respectively.
Interestingly, IDBI Principal Deposit
Bond-D option, topper in the last three month turned a laggard with a
below average gain of 0.62 per cent.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1
Month (%) |
| Tata Income-DH |
1.60 |
|
IDBI PRINCIPAL Deposit
Bond-D |
0.62 |
| Templeton India Income
|
1.56 |
|
IL&FS Bond |
0.85 |
| Tata Income-G |
1.54 |
|
Dundee Bond PSU
|
0.86 |
| PNB Debt |
1.47 |
|
JF India Bond |
0.88 |
| Grindlays SSI |
1.47 |
|
UTI Bond |
0.91 |
| LIC Bond |
1.41 |
|
IDBI PRINCIPAL Deposit
Bond-G |
0.97 |
| Sun F&C Money Value
Bond |
1.38 |
|
JM Liquid-D |
0.98 |
| KP Income Builder
|
1.37 |
|
JM Liquid-G |
0.99 |
| K Bond Wholesale
|
1.35 |
|
Escorts Income Plan
|
1.03 |
| Pru ICICI Income Plan
|
1.30 |
|
Dundee Bond Corporate
|
1.09 |
| No. of Funds |
35 |
|
|
|
| Sector Average |
1.20 |
|
|
|
Gilt Funds
Gilt funds, with their dedicated investments in
Government Securities gained an average 1.25 per cent last month. With the gains
coming at a faster clip for longer-dated bonds, it is not surprising to
find K Gilt Serial 2011 and 2013 emerging toppers this month.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| K
Gilt Serial 2011 |
2.27 |
|
Zurich India Sov Gilt Prov |
0.49 |
| K
Gilt Serial 2013 |
2.14 |
|
LIC
Govt Sec |
0.73 |
| Birla Gilt Plus Long-term |
1.75 |
|
Chola Gilt Investment |
0.80 |
| Tata GSF-G |
1.60 |
|
Alliance GSF Long-term |
0.88 |
| JM
G-Sec Regular |
1.56 |
|
Chola Gilt 2003 |
0.89 |
| DSPML GSF Plan A |
1.50 |
|
Magnum Gilt Long-term-G |
0.97 |
| Templeton IGSF |
1.49 |
|
Dundee Sovereign Trust-DM |
0.98 |
| K
Gilt '98 Inv Plan |
1.47 |
|
Dundee Sovereign Trust-G |
0.98 |
| Cangilt (PGS) |
1.42 |
|
Dundee Sovereign Trust-DY |
0.99 |
| JM
G-Sec PF |
1.40 |
|
Dundee Sovereign Trust-DQ |
0.99 |
| No.
of Funds |
30
|
|
|
|
| Sector Average |
1.25 |
|
|
|
Debt with Marginal Equity
Twelve funds in the marginal equity
category posted an average gain of 1.11 per cent, casting aside the pressures of
equity investing. Among the three options of Templeton MIP, the Growth Plan
emerged the top performer by gaining 1.57 per cent, with a marginal allocation to
equity.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| Templeton MIP-G
|
1.57 |
|
HDFC Children's Gift Sav
|
0.52 |
| Templeton MIP-DM
|
1.49 |
|
Birla MIP |
0.87 |
| Templeton MIP-DQ
|
1.27 |
|
Reliance Monthly Income
|
0.95 |
| No. of Funds |
12 |
|
|
|
| Sector Average |
1.11 |
|
|
|
Short TermFunds
Debt Funds
Short-term debt
funds with their exposure to money market instruments essentially invest
at the shorter end of the maturity spectrum. The category posted an
average gain of 0.7261 per cent for April. Here again, Prudential ICICI Fixed
Maturity Plans, who are pitched at a relatively high end of the short-term
maturity spectrum, gained the maximum to emerge leaders.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| Pru
ICICI FMP HY1 I |
1.1595 |
|
Magnum InstaCash Dividend
|
0.4979 |
| Pru ICICI FMP Y2 I
|
1.0435 |
|
Tata Liquid-G |
0.5017 |
| Pru ICICI FMP Y1 I |
1.0035 |
|
ING Treasury Portfolio |
0.5222 |
| Chola Liquid |
0.8897 |
|
Magnum InstaCash (Cash) |
0.5284 |
| K
Bond Serial 2001 B |
0.8713 |
|
IDBI PRINCIPAL Cash Mgmt
Call-G |
0.5456 |
| No. of Funds |
39
|
|
|
|
| Sector Average |
0.7261 |
|
|
|
Gilt Funds
Among short-term funds, 11 Gilts funds saw a
sharper rally with an average gain of 0.8141%. Prudential ICICI Gilt
Treasury Plan, backed by an active management, surged to top with a gain
of 0.9771%.
| Leaders |
Return 1 Month (%)
|
|
Laggards |
Return 1 Month (%)
|
| Pru ICICI Gilt Tre Plan
|
0.9771 |
|
JM G-Sec Short Term
|
0.5959 |
| Alliance GSF Short-term
|
0.9624 |
|
Chola Gilt Savings
|
0.6043 |
| Magnum Gilt Short-term-DM |
0.9268 |
|
Magnum Gilt Short-term-G |
0.6414 |
| K
Gilt Serial 2001 |
0.9177 |
|
Birla Gilt Plus Liquid |
0.8048 |
| DSPML GSF Plan B |
0.8653 |
|
K Gilt '98 Saving Plan
|
0.8241 |
| No. of Funds |
11
|
|
|
|
| Sector Average |
0.8141 |
|
|
|
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