Bull run sees MF returns exceed 100%

The bull run on the stock markets has seen a number of mutual fund schemes put up impressive performances. As many as 29 equity schemes returned in excess of 100 per cent in the last calendar year.

The top 15 equity schemes in terms of their performance in the last year delivered an average return of 142 per cent.

On an average, diversified equity funds posted returns of 122 per cent in the last one year and 79.7 per cent in the last six months as compared to gains of 72.89 per cent and 61.8 per cent, respectively, in the Sensex in the corresponding periods.

Some sector funds, including pharma funds, index funds and tax saving funds, have delivered returns in excess of 100 per cent in the last one-year.

Interestingly, for the first time in 2003, two diversified equity funds, Tata Equity Opportunities Fund (102.76 per cent) and Franklin Prima (101.44 per cent) crossed the 100 per cent returns mark since March 31, 2003.

The stock market boom has also seen equity funds rewarding investors with liberal and multiple dividend payouts in the second half of the year.

A look at the dividend history of equity plans in the period from March 31 to December 31, 2003, shows that Birla Dividend Yield Plus declared five dividends totaling 53 per cent, while UTI Mutual Fund declared a 100 per cent dividend in three of its equity schemes"�UTI MEP 98, UTI MEP 99 and UTI Master Value.

In spite of the equity rally, the bulk of the corpus of mutual funds (to the tune of 70 per cent) is locked in debt and liquid schemes.

Industry experts point out that there is an emerging trend of debt investors shifting to monthly income plans (MIPs), which explains the launch of a plethora of MIPs in the last few months.