16 MONEY MATTERS
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THURSDAY, JANUARY 28, 2010, DELHI ° WWW.LIVEMINT.COM
MUTUAL FUND SCHEMES TO INVEST IN
Here's a list of mutual fund schemes that made it to Mint 50. The net asset value (NAV) figure tells you the price per unit of each fund. The returns are across four time periods and equity investors would do well to look at five- and 10-year performances and then look at at the one-year return to see if the fund is still ahead. Morningstar rating gives an indication of the risk-adjusted return. The expense ratio tells you how much of your money you lose to charges each year. And finally, our take on each fund as the last column in this table. Scheme
LARGE-CAP
NAV
1-year return
3-year return
Rs
5-year return
10-year return
Morningstar rating
%
Expense ratio
Our view
%
CORE Birla Sun Life Frontline Equity A Gr DSP BlackRock Top 100 Equity Gr Fidelity Equity Gr Franklin India Index NSE Nifty Gr Franklin India Prima Plus Gr HDFC Equity Gr HDFC Top 200 Gr Kotak Sensex ETF4 Nifty BeES ETF4 Reliance Regular Savings - Equity Gr UTI Opportunities Gr
78.54 88.63 29.49 39.53 194.01 226.19 175.48 170.06 504.93 28.13
101.02 80.64 95.69
14.69 14.77
28.20 28.64
10.71
NA2
NA1
Done well in falling as well as rising markets. Takes selective exposures to mid-cap scrips.
NA1
2.32 2.06
NA2
1.89
Tends to diversify across many holdings in true Fidelity style. Gives consistent performance across market cycles.
1
The year gone by was tough due to wrong cash calls and its large-cap mandate. Recovered in second half of 2009.
85.02 88.21
6.60 10.48
21.32 27.16
NA 20.19
1.00 1.99
An index fund that invests in Nifty scrips in exactly the same proportion as they are in the index.
125.60 107.67
14.20 15.66
30.27 29.82
24.51 23.19
1.86 1.89
Did well in the falling markets of 2008 and 2009 market run-up. Sound fund management and low downside risk.
92.36
NA6
NA6
NA6
0.50
The lowest tracking error exchange-traded fund based on the Sensex.
7.88 19.84
22.29 NA2
NA1
0.50 2.19
India first exchange-traded fund and one with the least tracking error. This one is on the Nifty.
NA2 NA2
2.32
Follows a top-down strategy and focuses on 4-5 sectors at a time. Showed good fund management in 2009.
86.35 128.76
NA7
A consistent, long-time performer that invests significantly in large-cap scrips. Conservative fund that follows its benchmark closely but doesn't hug it. A good long-term equity fund investment.
An opportunistic fund that invests in scrips across market capitalization. Focus mainly on large-cap scrips.
23.48
99.83
17.48
NA2
43.97
90.19 71.29
8.80 10.94
27.46
NA1
1.90
Consistent performance, but focuses on the infrastructure sector. Theme focus makes it risky.
23.81
NA1
2.44
Diversifies in stocks across market capitalization. The fund has stablized in recent years.
30.37 NA2
NA1
2.30 1.86
Its hoarding of defensive sectors failed in 2007, but helped in 2008. A fund that can attain highest cash level.
NA2
NA2
NA2
2.49
India's first no-load fund. Follows a value styled approach. Meant for conservative investors.
25.95 27.04
1
NA NA1
2.11 2.50
Prefers to concentrate around 20-30 scrips and has done well across market cycles.
25.97 25.52
20.96 22.57
2.50 2.33
Takes selective exposure to mid-caps like it did in 2009. A consistent performer. Was a bit late in deploying cash in 2009 but recovered. Picks companies with sustainable cash flows.
SATELLITE DSP BlackRock India Tiger Gr DWS Alpha Equity Gr ICICI Pru Dynamic Gr ICICI Pru Infrastructure Gr Quantum L/T Equity Gr
71.17 91.88 28.44 18.39
Sundaram BP Sel Focus Gr Tata Infrastructure Gr
83.67 32.60
Tata Pure Equity Gr Templeton India Growth Gr
89.39 107.42
UTI Dividend Yield Gr BSE 200 India Peer group average
27.14
94.81 79.77 109.93
10.52 14.01 13.22
Its slightly tactical defition of “infrastructure” apart, this is a good pedigreed fund.
79.31
10.15
92.54 92.61
9.66 12.16
122.92 88.08 103.13 88.96
15.98 18.14 7.77 7.84
NA2
NA2
2.09
21.16 22.99
12.92 16.22
2.03
142.73 140.57 178.75
15.89 11.64 16.43
28.76 NA2 23.32
NA1 NA2 NA1
2.32 2.09 1.00
Consistent track record, well diversified. Sticks to its mid-cap mandate. Avoids concentration.
1
A large-cap oriented fund that focuses on the infrastructure stocks. Theme focus makes it risky. Follows a value-oriented approach of investing and done well in falling markets.
SMALL/MID-CAP CORE Birla Sun Life Mid Cap A Gr DSP BlackRock Small Midcap Gr3 Junior Nifty BeES ETF4 Tata Equity P/E Gr
104.47 15.03 103.35
One of the stars of 2009, diversifies across multiple holdings to reduce risk. India's only mid-cap-oriented ETF. Good for conservative investors seeking mid-cap exposure.
43.64
120.26
18.49
27.44
NA
2.50
Since the fund invests in scrips whose P-E multiple is less than that of Sensex, it gets into in mid-cap scrips.
52.12
96.33
15.63
30.61
19.11
2.11
Splits its portfolio between large- and mid-cap scrips. An alternative for actively managed pure mid-cap funds.
121.48 114.85
12.27 6.94
22.25 22.53
15.56
na 2.32
18.01 196.35 41.79
96.64 115.14 83.75
11.81 9.33 12.75
NA2 26.96 27.29
NA2 21.91 20.99
2.11 2.06 2.25
Doesn't take aggressive cash calls. Prefers investment across 50-70 scrips. Follows a bottom-up strategy.
15.08
95.08 103.13 94.04
13.19 7.77 6.77
NA2 21.16 21.63
NA2 12.92 16.48
NA7
2.50 na 2.31
Done well in rising and falling markets. Fund manager has a good track record.
76.94
102.86
27.75
45.13
NA1
na
1.78
A sectoral fund that focusses on one of India's most promising sector. This is a high-risk, high-return fund.
267.63 58.88 174.16 74.25
76.21 69.07 100.37 85.28
14.26 14.34 14.20 13.29
22.37 22.69 25.92 22.78
15.84 15.86 22.41 16.60
2.47 2.08 1.91 2.50
Aggressively managed. Average maturity of debt can go up to 1.5-2 years.
43.43
59.31 62.77
8.83 8.29
19.25 17.37
14.89 13.38
2.35 1.74
Can consider an exposure only after allocating to the “core” funds. Good fund management.
33.85 26.91 26.21 20.75 16.06 20.00 18.44
19.22 19.76 20.67 34.04 19.47 26.52 18.09
10.22 11.03 8.09 11.80 7.43 12.74 10.00
10.37 14.47 9.29 13.63 8.12 13.93 9.66
10.73 11.22 NA1 NA1 NA1 NA1 NA1
2.20 1.68 2.04 1.82 2.24 0.80 1.40
Good track record and can invest up to 15% in equities.
16.38
8.41 16.34
12.34 7.06
9.76 8.45
NA2 8.82
0.24 1.75
Suffered in early 2009 on acccount of a exposure to government securities. Changed focus to suit retail investors.
3-month return
6-month return
1-year return
2-year return
SATELLITE DSP BlackRock Equity Div5 CNX Midcap Peer group average
ELSS (TAX SAVINGS) CORE Fidelity Tax Advantage Gr HDFC TaxSaver Gr Sundaram BP Taxsaver Gr
Apart from an occasional glitch and a dissappointing 2007, the fund has a good, long-term track record. Metamorphosed into a large-cap-oriented fund, from being mid-cap earlier. Done well in the falling markets.
SATELLITE Religare Tax Plan Gr BSE 200 India Peer group average
POWER Reliance Diversified Power Sector Gr
MODERATE ALLOCATION, up to 75% in equity CORE Birla Sun Life 95 Gr DSP BlackRock Balanced Gr HDFC Prudence Gr Tata Balanced Gr
Performance, pedigree and persistence are the scheme's hallmarks. Well-diversified, good pedigree and fund manager stability. Can outperform diversified equity funds. Well-diversified and consistent track record.
SATELLITE FT India Balanced Gr Peer group average
CONSERVATIVE ALLOCATION, up to 30% in equity CORE Birla Sun Life Monthly Income Gr Canara Robeco MIP Gr FT India MIP A Gr HDFC MIP L/T Gr HDFC MIP S/T Gr Reliance MIP Gr UTI MIP Gr
Can invest up to 20-25% of its corpus in equities and has a well-diversified equity portfolio. Follows a high-risk, high-return strategy in asset allocation although its equity component is well diversified. Good pedigreed fund that has delivered consistent returns over a long term. Invests up to 25% in equities. Good pedigreed fund with performance. Prefers to limit its equity investments to 15% of its portfolio. Low expense ratio. Takes measured exposure to government securities. Prefers restricted exposure. A well-diversified portfolio with good quality debt scrips
SATELLITE Birla Sun Life MIP Savings 5 Gr Peer group average Scheme
SHORT-TERM BOND Birla Sun Life S/T Gr DWS Short Maturity Gr HDFC High Interest Gr Kotak Bond S/T Gr Reliance S/T Gr Templeton India S/T Income Gr Peer group average
NAV Rs
16.49 16.43 18.20 17.57 17.26 1,825.97
%
0.94 1.56 2.28 1.65 1.73 2.41 1.24
2.05 2.53 3.42 2.55 2.75 4.22 2.12
Morningstar rating
Expense ratio
Our view
%
4.92 8.82 9.39 8.44 8.67 11.46 5.83
6.69 10.07 10.75 9.59 10.30 10.38 7.66
0.73 0.92 1.87 1.27 0.63 0.93 1.04
Managed in a very conservative way by limiting the portfolio's average maturity to up to 6 months. Fund has delivered steady returns, good quality portfolio and an exit load to deter very short horizon investors. One of the two short-term funds from HDFC mutual fund, this is an an agressively managed short-term fund. Invests in government securities also, but takes active calls on interest rates. One of the lowest expense ratios in the category and a good long-term track record. One of the largest short-term funds and consistently limits its average maturity.
The above schemes are a part of MINT 50; a concise list of 50 mutual fund scheme recommendations, that merit your attention, out of some thousand-plus schemes floating in the industry. MINT 50 is a guide for fresh investments only; for existing investments, keep reading our regular MF pages Funds are rated on a three-year basis ; NAV and returns are as on 22 January ; Morningstar rating is as on December 2009-end; returns over a year are annualized; less than a year are absolute; NA1: the fund has not yet completed 10 years; NA2: The fund has not yet completed 5 years; 3: DSP BlackRock Equity Fund is classified by Morningstar as a large-cap fund, but since the fund invests a significant portion of its assets in mid-cap scrips, we felt it best to classify it as a mid-cap fund; 4 : an exchange-traded fund, you need a demat account to buy it as they are available only on the stock exchanges; 5: the fund's dividend option is accounted for in the ratings as the growth plan is less than 3 years; NA6: the fund is less than 3 years old; NA7: Morningstar has not yet rated this fund as it did not complete three years as on cut-off date; na: not applicable; core portfolio: a sigifnicant chunk of your portfolio where you should have solid long term performers; sattellite portfolio: one that is used to get a returns kicker or funds that have a seasonal flavour such as thematic or sectoral funds; moderate allocation funds invest up to 75% in equities; conservative allocation funds invest not more than 30% in equities; P-E: price-earnings; funds are listed alphabetically
Source (NAV and returns): Morningstar India
Graphics by Yogesh Kumar/Mint