skip to main |
skip to sidebar
Mauritius based Frontline Strategy Ltd today announced the launch of its $ 200 million India Industrial Growth Fund (IIGF). The fund will make private equity investments in India's small and medium enterprises, with each investment likely to be in the $ 10-12 million range over the lifecycle of the investment. The Fabiani Family Investment Office is the anchor investor in the fund.
India Industrial Growth Fund’s broad target investments would be companies that are in the early stages of the PE investment space, primarily in the industrial space and with revenues between Rs. 200 million and Rs. 1 billion.
A soft closure of $ 33 million has already been achieved, and the fund plans to invest shortly in a few identified opportunities.
India Industrial Growth Fund is Frontline Strategy's second private equity fund, the first being Strategic Venture Fund (Mauritius) Limited (SVF), with total capital returns at over $ 85 million.
Speaking on the occasion Mr. Harish Fabiani Venture Partner, Frontline Strategy, and Cofounder, Fabiani Family Investment Office said “India Industrial Growth Fund fulfils the long awaited need of India's SMEs for access to quality global investment funds. The team at Frontline Strategy have not only been brilliant in spotting India's ground level SME opportunities, but also helped investee companies with critical strategic and business inputs to excel in the global marketplace.”
At the launch Atim Kabra, Founder Partner and Principal, Frontline strategy said “The launch of the India Industrial Growth Fund is founded on the success of the Strategic Venture Fund, our first private equity fund. We are delighted with the response of global investors to India's SME proposition. We are confident that, with the right and timely infusion of capital and strategic advice, Indian SMEs with good management and compelling business models could be fast forwarded on the growth track,”
Mutual funds are increasingly launching schemes to take advantage of the infrastructure boom, both within the country and globally.
The schemes will invest in companies that will benefit from the multi-billion dollar investments required in ports, roads, telecom, construction, engineering and aviation across the world in the coming years.
Kotak Mutual Fund launched the Indo-World Infrastructure Fund’ on 27 November 2007. This is a three-year close-ended equity fund aiming to ride on the Indian infrastructure story, and more importantly, the global boom in infrastructure.
Kotak’s fund is the second infrastructure scheme after Tata Mutual Fund launched the ‘Indo-Global Infrastructure Fund’ in September 2007.
Kotak MF’s new fund offer will invest 65% of its funds in Indian infrastructure theme and the remaining in overseas equity or mutual funds connected with the infrastructure theme.
India alone requires investments worth $500 billion in five years. The fund will offer an excellent investment avenue for long term investors looking to gain stable returns from exposure to companies likely to benefit from infrastructure investments in India and rest of the world.
Indian mutual funds are allowed to invest $5 billion outside the country. In September, Sebi hiked the overseas investment limit for individual mutual funds to $300 million.
Riding high on the booming domestic infrastructure sector, DBS Cholamandalam and SBI Mutual Fund have also launched mutual funds that are investing in local infrastructure companies.
All the infrastructure schemes are doing fairly well, courtesy the rising stock prices of companies catering to the infrastructure theme one way or the other, such as Larsen & Toubro, Grasim, Gujarat Ambuja Cement, IDFC, Reliance Industries and ONGC.
ICICI Prudential’s Infrastructure fund gave returns of 75.97% and Tata Mutual Fund’s Indian infrastructure granted 72.65% in the past one year (as on 28 November 2007).
DSP Merrill Lynch’s Tiger fund and UTI’s infrastructure fund generated annual returns of 66.34% and 65.37% respectively.
Canara Robeco Infrastructure gained the top position in the category with 79.18% returns, followed by Sundaram BNP Paribas CAPEX Opportunities Fund with 79.17%
Private equity firm Blackstone, Goldman Sachs, UBS, Citigroup, National Australian Bank and Shinsei Bank are likely bidders for an equity stake in India’s oldest fund house, UTI Asset Management Company (UTI AMC).
Close to 25 overseas institutional investors have evinced interest in picking up a stake in the country’s third largest mutual fund. UTI AMC plans to offload 20% stake through a private placement and 29% through an initial public offer. However, no single investor would be able to hold more than 5%.
Merchant bankers are in the process of readying the information memorandum which will be given out to prospective investors as a part of the pre-marketing exercise before they give their bids. However, all institutional investors will have to match the initial public offer price if it is more.
The private placement is expected to be completed by January while the initial public offer is slated for February-March. The listing process has to be completed before 31 March 2008. The fund house could raise about Rs 6,000-8,000 crore through the combination of private placement and initial public offer.
The fund house, which has an equity base of 5 crore shares, will be expanding it equity base. It will selling 1 crore shares through private placement and 1.94 crore through initial public offer. The government nominees including State Bank of India, Punjab National Bank, Life Insurance Corporation and Bank of Baroda will hold a 51% stake in the fund house after the listing.
At present, all four hold 25% stake each. They would dilute 5% each in the private placement and another 7.25% each through the IPO. The four sponsors had spent Rs 1,200 crore towards buying UTI’s equity in 2005. The stake sale early next year through the private placement and the IPO will allow them to unlock value.
UTI AMC was created in 2003 after the operations of India’s first mutual fund, Unit Trust of India, were split after many schemes of the old UTI went bankrupt. The government had transferred the net asset value-based schemes to the AMC while some schemes promising guaranteed returns (including the famous US-64) were housed in a separate vehicle called special undertaking of UTI.
The fund house has already received the government’s approval for expanding its equity base. UTI AMC has assets under management (AUM) of about Rs 51,753 crore. In the mutual fund industry, valuations are based on the AUM that the fund has and is calculated as a percentage of the AUM.
UTI AMC plans to double its branches to 150 by this fiscal (March 2008) and raise this to 300 branches over the next fiscal. The funds raised through the private placement and IPO will go towards funding the expansion and new schemes.
The fund house has just launched a mega infrastructure fund which is its largest offer ahead of its proposed initial public offer. UTI’s infrastructure fund, which will invest in listed infra companies, is hopeful of raising Rs 4,000 crore.
Chandigarh: With the unveil of its Infrastructure Advantage Fund Series I, UTI Mutual Fund expects to raise Rs 150 crore from Punjab, Chandigarh, Himachal Pradesh, Jammu & Kashmir and Haryana. They expect with the launch of this fund we would be able to attract an investment of Rs 4,000 crore from across India. So far this part (Punjab, Chandigarh, Himachal Pradesh, Jammu & Kashmir and Haryana) of the region is concerned, they are hopeful this fund would raise Rs 150 crore. They are planning to open three more offices in Panipat, Patiala, and Jammu. The company has total assets of Rs 51,753 crore under management and investor accounts of over 8 million under its 73 domestic schemes (as of October 31, 2007).
The UTI Infrastructure Advantage Fund Series I is a three year close-ended equity scheme with an investment objective to provide income distribution and/or medium- to long-term capital appreciation by infusing predominantly in equity/equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the country.
Capital markets regulator will soon pave the way for real estate investment trusts (REITs), listing of securitised papers and quick fund raising by corporates. SEBI, which will come up with the first set of proposals on REITS, is also finalising the norms for real estate mutual funds (REMFs).
REITs offer common shares to the public, helping individual investors to enjoy the benefits of owning an interest in the securitised real estate market. REITs may be listed on stock exchanges like shares of other companies, providing easy liquidity to investors unlike the traditional way of disposing real estate. However, different countries have different specifications for the product.
On real estate MFs, the issue that needed to be addressed was calculation and valuation of the net asset value for such schemes. SEBI chairman M Damodaran said: “The accounting solution for valuation of real estate were being worked out by AMFI and ICAI. We will ensure that both the products are made available to the investors over time.”
India is currently in the process of formulating legislation for the introduction and smooth functioning of real estate investment trusts . Mr Damodaran also said rules on trading of securitised debt would be ready by December 2007. “As for the corporate bond market, work is already in progress.
We are talking to exchanges to see how quickly this can be done,” he said. SEBI is also working on guidelines to help speed up the process for raising capital. About 30 companies will derive the benefit of the new norms on fund raising by selling stocks under fast-track process. He said they would devote year 2008 for nationwide investor education campaign and encourage the market participants to take up the role of self regulating organisations (SROs) more seriously.
On FIIs, Mr Damodaran said a large number of foreign investors want to register in India. “I am happy to say that in the last one month a large number of foreign investors have approached us to invest directly in our markets. The intention is largely to see that the markets are onshore and not offshore as was in the past,” he added without giving any specific numbers.
Last month, Sebi had tightened investment rules for unregistered foreign players. It had then said it would encourage foreign funds to invest transparently by registering with Indian authorities.
Mumbai: ING Investment Management (India) Pvt Ltd said on Monday it will launch a fund of funds that would mainly invest in one of ING Group NV's existing real estate funds.
ING Global Real Estate Fund, open for subscription from Nov. 20, will mainly buy units of ING Global Real Estate Securities Fund, the asset manager said, adding it could also invest up to 35 per cent of the assets in similar overseas mutual funds.
"This fund opens up a new asset class for Indian investors," Vineet K. Vohra, who joined the fund firm as chief executive officer in July, said. "The need for a diversifier is quite visible in today's market place," he said, adding the fund is positioned to offer returns superior to those from fixed income funds with lower volatility than an equity fund.
ING Global Real Estate Securities Fund does not invest in properties directly, but in real estate investment trusts and real estate operating companies, the fund house said.
"Real estate should have a permanent position in the financial portfolio of investors. India has some catching up to do. The world already invests that way," Vohra said.
The fund will charge an entry load of 2.5 per cent on investment of less than Rs 1 crore and also recover an exit fee of 1 per cent for redemptions within 180 days.
Those investing Rs 1 crore or more will not have to pay entry load.
The fund house managed assets worth about Rs 9000 crore at the end of October, data from the Association of Mutual Funds in India showed.
SBI Mutual Fund is planning to launch gold exchange traded fund early next year.
“We should come up with some form of ETF by early next year,” said Mr O.P. Bhatt, SBI Chairman. “We will launch the product as soon as we can address the issue of why it (ETF) has not taken off,” he said. The fund expects to mobilise not less than Rs 200 crore, the Chairman said.
A country like India, which is a large consumer of gold with an annual consumption of 900 tonnes, is also one where the vast majority of the population is yet to experience the actual buying of gold, said Mr Bhatt.
“When they experience rise in incomes, the first thing they do is to buy gold. This factor alone will take the demand 5 to 10% higher per year,” he added. Today, the country is said to be in possession of 15,000 tonnes worth some $300 billion that is not put to productive use.
It has proposed a scheme for temples and Trusts whereby they can deposit their gold with SBI for which the bank may also give some incentive.
“We are speaking to temple authorities but there are issues like purity and standard of gold lying with the temple authorities,” he said.
Kochi: India oriented mutual fund will be launched early next year by Doha Bank of Qatar in collaboration with Tata Asset Management, R. Seetharaman, CEO, Doha Bank, has said.
Addressing a press conference, he said the bank is awaiting regulatory clearances both in India and Qatar and the fund will be launched in 2 to 3 months.
Targeted at NRIs, the money mobilised by the mutual fund would be invested in infrastructure projects. Real estate and telecommunication are the two probable areas of investment, he said.
He pointed out that the tie-up between Doha Bank of Qatar and the Kochi based brokerage, Investnet, is entering an active phase with the group looking for expansion plans within India and outside.
The group is venturing into various new segments such as NBFC, Asset Management and other related services and it had already set up offices in Dubai, the UAE, Doha and Qatar.
The AGM of the group, which held here on Friday, has also decided to change the name of the holding company Select Securities Ltd to Doha Brokerage and Financial Services (DBFS).
It also appointed Seetharaman as the Chairman, and Prince George, CEO of Select Group, as the Managing Director, respectively of DBFS.
The Principal Resurgent India equity fund delivered a mind-boggling return of 147.11 per cent for a one-year period ending November 15, 2003. It was at the top of charts among diversified equity schemes at that point of time. However, it could not sustain the performance for long, and for the next one year, it generated a return of 30.65 per cent and was ranked 39.
While selling mutual fund (MF) schemes, most distributors tend to highlight the recent performance. But the scheme that is hot at one point of time may not be so one year down the line — at least that is what a DNA Money analysis seems to suggest.
Only three of the top 10 schemes, as per their one-year returns on November 15, 2003, made it to the list one year later.
The story is no different in the subsequent years either.
Only five of the top 10 schemes, as on November 15, 2004, made it to the list a year later. Only one of the top 10 schemes, as on November 15, 2005, was in the top 10 list a year later.
And finally, only three of the top 10 schemes, as on November 15, 2006, remained in the top 10 list a year later.
This clearly suggests that the schemes that form the top 10 list by one-year returns usually disappear from the list the very next year. They are essentially one-year wonders which are not able to sustain their performance in the years to come. What this tells us is that investing in an MF, looking at its one-year returns, isn't really a strategy that works.
But what is it that makes a scheme that does really well in a given year become an average performer in the years to come?
When a scheme does well during a year, its performance gets highlighted everywhere and a lot of new money comes in.
As the amount of money invested in the scheme goes up, the impact a single stock has on its overall performance goes down. What this means is that the fund manager has to look for more multi-bagger stocks, which will help the scheme to continue to perform well. This may or may not happen.
Multi-baggers are usually stocks whose true potential has not yet been recognised or are currently out of favour with the market. Hence choosing a mutli-bagger involves some amount of calculated risks.
However, as the money coming into the scheme grows, the fee income (entry load, management fees, etc) that comes in with it also increases. Hence, the fund manager may or may not be willing to take calculated risks that made the scheme initially successful.
An excellent example is Sundaram Select Mid-cap fund, which was the top- performing scheme as per one year returns as on November 15, 2006. As on November 15, 2007, the scheme ranked 104 among all diversified equity schemes as far as one-year returns are concerned.
The good performance of the scheme in the previous years ensured that a lot of new money came into the scheme and it clearly was unable to handle that.
So, how does an investor figure out where to invest and not end up investing in what may essentially be a one-year wonder?
The way out is to look for the performance of a scheme over a period of 3-5 years. Schemes that make it to the top 10 list of 3-5 year returns, tend to stay there more often.
Seven out of 10 schemes, which were in the top 10 list, as of November 15, 2006, as per five-year returns were there a year later. The same is the case with three-year returns.
Nine out of 10 schemes in the top 10 list as per 5-year returns, as on November 15, 2003, were there a year later as well. What this clearly tells us is that certain schemes continue doing well over a longer period of time, irrespective of whether they make it to the top 10 list as per one-year returns or not. And it is in these schemes that an investor should be investing.
Ahmedabad: After SBI Mutual Fund, UTI Mutual Funds is in negotiations with Societe Generale Asset Management (SGAM) of France for managing its funds globally. The alliance is a part of UTI's plans to increase its global business to $1 billion by the end of 2007. As a part of the alliance, SGAM will be managing UTI's funds in the overseas market. SGAM, a dominant player in the global mutual fund arena with presence in over 20 countries in Europe, United Sates, and Asia, is already managing SBI Mutual Fund's products after it entered into an agreement nearly a year ago.
The company has not decided on the possible sectors where the international fund would be infusing. The company is hoping a corpus of over Rs 4,000 crore from it. The scheme, which closes on December 19, 2007, will infuse in sectors like construction, energy, engineering, metals, power, telecom, transportation, airports, and others. With 30.5 per cent of the total investment of Rs 20,18,709 crore on infrastructure earmarked by the government over the next five years to be spent on power in the country.
Background: SBI Funds Management Ltd manages SBI Mutual Fund a wholly owned subsidiary of India's premier and largest bank; the State Bank of India. SBI Mutual Fund set up in June 1987.SBI Mutual Fund house has Rs.26593.57 crore assets under management at the end of October 2007. The AMC has already launched a range of products to suit different risk and maturity profiles.
Magnum Midcap Fund (G) an open-ended balanced scheme launched in August 1995.The objective of the scheme is to provide growth through capital appreciation. It also plans to provide periodic income through declaration of dividends. The minimum investment amount is Rs.5000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs.33.43 as on 13 November 2007.
Portfolio: The total net assets of the scheme increased by Rs.11.82 crore to Rs.483.42 crore in October 2007.
Magnum Midcap Fund (G) took fresh exposure to one stock in October 2007. The scheme has purchased 5.00 lakh units (1.92%) of Radico Khaitan in October 2007.
The scheme completely exited from in Gujarat State Petronet by selling 7.21 lakh units (1.00%), Sagar Cements by selling 99,528 units (0.34%), Tanla Solutions by selling 22,606 units (0.29%) and Allied Digital Services by selling 29,886 units (0.24%) October 2007.
Sector-wise the scheme took fresh exposure to Breweries & Distilleries at 1.92% in October 2007.
Sector-wise the scheme has not exited completely from any sector in October 2007.
The scheme had highest exposure to Gujarat Mineral Development Corporation with 2.01 lakh units (10.65% of portfolio size) followed by Thermax with 3.15 lakh units (5.77%), Gitanjali Gems with 6.61 lakh units (5.39%) and Kesoram Industries with 4.48 lakh units (5.31%) among others in October 2007.
It reduced its exposure to Welspun Gujarat Stahl Rohren by selling 3.14 lakh units to 1.50 lakh units (by 1.90%), Nagarjuna Construction Company by selling 3.49 lakh units to 4.88 lakh units (1.33%) and Hotel Leela Venture by selling 8.80 lakh units to 10.00 lakh unit (1.03%)among others in October 2007.
Sector-wise, the scheme had highest exposure to Mining / Minerals / Metals at 10.65% (6.15% in September 2007), followed by Engineering at 10.08% (8.34%), Steel – Large at 9.96% (11.91%) and Construction at 6.25% (7.89%) among others in October 2007.
Sector wise, the scheme had reduced exposure Steel – Large to 9.96% (by 1.95%), Construction to 6.25% (by 1.64%), Hotels to 0.99% (1.03%) among others in October 2007.
Performance: The scheme outperformed the category average over all time periods. It has outperformed the Sensex over all time periods.
Over three-month period ended as on 13 November 2007, the scheme posted 28.92 % of returns outperforming the category average of 24.08%. It outperformed the Sensex that posted 26.76% during the same period.
Background: Prudential ICICI Asset Management Company Ltd manages prudential ICICI Mutual Fund. A joint venture between Prudence Plc, UK's leading insurance company and ICICI Bank Ltd. India's premier financial institution. Prudential ICICI Mutual Fund house has Rs.56212.84 crore assets under management at the end of October 2007.
ICICI Prudential Balanced Fund (G) an open-ended equity-balanced scheme launched in September 1999.The primary investment objective of the fund is to generate long-term capital appreciation and current income from a portfolio that is invested in equity and equity related securities as well as in fixed income & money market securities. The minimum investment amount is Rs.5000 and in multiples of Rs.500 thereafter. The unit NAV of the scheme was Rs.43.44 as on 13 November 2007.
Portfolio: The total net assets of the scheme increased by Rs.20.91 crore to Rs.445.22 crore in October 2007.
ICICI Prudential Balanced Fund (G) took fresh exposure to four stocks in October 2007. The scheme has purchased 52,617 units (1.90%) of Aditya Birla Nuvo, 2.99 lakh units (1.61%) of NTPC, 1.94 lakh units (1.45%) of Zee Entertainment Enterprises and 80,216 units (1.37%) of Tata Motors in October 2007.
The scheme completely exited Reliance Energy by selling 1.00 lakh units (2.84%), United Phosphorus by selling 2.00 lakh units (1.87%), Tata Steel by selling 91,205 units (1.83%), and Andhra Bank by selling 5.12 lakh units (1.26%) in October 2007.
Sector-wise, the scheme took fresh exposure to Textiles – Manmade at 1.90%, Entertainment / Electronic Media Software at 1.45% and Automobiles - LCVs / HCVs at 1.37% in October 2007.
Sector-wise, the scheme did exited completely from Pesticides / Agrochemicals – Indian at 1.87% in October 2007.
The scheme had highest exposure to Reliance Industries with 1.77 lakh units (11.10% of portfolio size) followed by Jain Irrigation Systems with 3.11 lakh units (4.05%) Grasim Industries with 47,766 units (3.97%) and Bharat Heavy Electricals with 65,785 units (3.86%) among others in October 2007.
It reduced its exposure to Bharti Airtel by selling 51,712 units to 1.55 lakh units (1.08%), State Bank of India by selling 20,550 units to 45,002 units (by 0.92%), Sterlite Technologies by selling 2.11 lakh units to 2.21 lakh units (0.86%) and HCL Technologies by selling 97,668 units to 1.87 lakh units (0.71%) among others in October 2007.
Sector-wise, the scheme had highest exposure to Refineries at 11.10% (from 9.61% in September 2007), followed by Diversified – Mega at 6.47% (6.52%), and Plastics Products at 5.58% (5.49%) among others in October 2007.
Sector wise, the scheme had reduced exposure Banks - Public Sector to 3.79% (by 2.18%), Steel - Large to 2.82% (by 1.36%) and Computers - Software - Large to 4.65% (by 0.96%) among others in October 2007.
Performance: The scheme under performed the category average over most of the time periods. It has underperformed the Sensex over all time periods.
Over three-month period ended as on 13 November 2007, the scheme posted 18.53 % of returns outperforming the category average of 15.71%. It underperformed the Sensex that posted 24.77% during the same period.
UTI Mutual Fund has come out with a three-year close-ended equity fund called UTI Infrastructure Advantage Fund - Series I. The duration of the scheme is three years from the date of allotment. The scheme endeavors to provide income distribution and /or medium to long-term capital appreciation by investing predominantly in equity / equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the Indian economy.
According to Mr. Sanjay Dongre, Fund Manager, UTI AMC, "The scheme aims to build and maintain a diversified portfolio of equity stocks within the infrastructure theme that has the potential to appreciate in the long run. The scheme will invest in sectors that include, Construction, Energy, Engineering, Metals, Power, Telecom, Transportation, and Airports etc
About 65% to 100% of the portfolio allocation will be in equity and equity- linked instruments of companies engaged directly or indirectly in infrastructure sector. Debt securities and money market instrument will comprise of 0 to 35% of the portfolio.
Background: Tata Assets Management Ltd. is a part of the Tata group - one of India's largest and most respected industrial groups. The Tata Group is one of India's best-known conglomerates in the private sector with a turnover of around US $ 14.25 billion. The fund manages assets worth Rs.20198.55 crore at end of October 2007.
Tata Growth Fund (G) an open-ended equity-diversified scheme launched in June 1994. The objective of the scheme is to provide reasonable and regular income along with possible capital appreciation to its unit holder. The minimum investment amount is Rs.5000 and in multiples of Re.1 thereafter. The unit NAV of the scheme was Rs 45.25 as on 6 November 2007
Portfolio: The total net assets of the scheme increased by Rs.4.87 crore to Rs.126.21 crore in September 2007.
Tata Growth Fund (G) took fresh exposure to two stocks in September 2007. The scheme has purchased 21,000 units (2.41%) of Suzlon Energy and 30,000 units (2.11%) of Asian Electronics in September 2007.
The scheme completely exited from Infosys Technologies by selling 14,441 units (2.21%), Megasoft by selling 1.20 lakh units (1.16%), Sun TV Network by selling 41,708 units (1.15%), Aurobindo Pharma by selling 11,820 units (0.59%) and Automotive Axles by selling 8,307 units (0.33%) among others in September 2007.
Sector-wise, the scheme took no fresh exposure in September 2007.
Sector-wise the scheme completely exited from Computers - Software - Large at 2.21% in September 2007.
The scheme had highest exposure to United Spirits with 35,994 units (4.97% of portfolio size) followed by Bharti Airtel with 62,664 units (4.67%), Larsen & Toubro with 20,344 units (4.53%) and Tata Power Company with 54,050 units (3.66%)among others in September 2007.
It reduced its exposure Ipca Laboratories by selling 5,000 units to 26,811 units (by 0.40%), Zenith Infotech by selling 1.00 unit to 43,602 units (0.22%) and Hikal by selling 1.00 unit to 35,499 units (0.08%) among others in September 2007.
Sector-wise, the scheme had highest exposure to Computers - Software - Medium / Small at 9.03% (from 9.86% in August 2007), followed by Electric Equipment at 7.99% (3.34%) and Entertainment / Electronic Media Software at 5.70% (6.62%) among others in September 2007.
Sector wise, the scheme had reduced exposure to Entertainment / Electronic Media Software to 5.70% (by 0.92%), Computers - Software - Medium / Small to 9.03% (by 0.83%) and Pharmaceuticals - Indian - Bulk Drugs & Formulation to 4.84% (by 0.77%), among others in September 2007.
Performance: The scheme under performed the category average over most of the time periods. It under performed the Sensex over most of the time periods.
Over three-month period ended as on 6 November 2007, the scheme posted 23.81% returns underperforming the category average of 24.63%. It underperformed the Sensex that has posted 31.46% returns during the same period.
Equity mutual funds as a class reported an average return of 46.77%, under performing the Sensex return of 52.13%, over the one-year period ended 2 November 2007. Of the 238 equity schemes, 133 surpassed the category average of 46.77% in the one-year period, while 95 outperformed the Sensex that is posted 52.13%. The topper was Reliance Diversified Power Sector (G) with 128.94% return. In the equity category, the diversified categories, midcap and tax planning outperformed, giving a category average of 48.45%, 43.56 % and 47.15%, respectively. In the equity diversified category, out of the 126 schemes, 68 exceeded the category average of 48.45%, while 54 outperformed the Sensex return of 52.13%, over the one-yea period ended 2 November 2007.
In the mid-cap segment, Magnum Midcap Fund (G) the topper, with 62.90% return, exceeding the category average of 43.56%, followed by Reliance Growth Fund - (G) with 61.82% return. Out of 24, 6 schemes outperformed the CNX Midcap index return of 52.22% return. Pru ICICI FMCG Fund (G) was the topper in the FMCG category, with 24.40% return, outperforming the category average of 14.75% and out performing the BSE FMCG index with 1.04% returns. In the Tax-planning category, of the 30 schemes, 15 outperformed the category average of 47.15%. Birla Sun Life Tax Relief '96 Scheme, with 66.10% return, clinched the top position.
