MFs turn bullish in Oct, while FIIs move out

Mutual Funds (MFs) showed buoyancy in equity markets, while foreign institutional investors (FIIs) were sellers in October 2005.

FIIs net outflow totalled Rs 3,805.60 crore in the equity segment whereas MFs poured in Rs 2,905.11 crore in the period.

MFs focused on certain sectors such as banking, software, power, cement and textiles. Stocks such as ICICI Bank, Bank of India, Syndicate Bank and Vijaya Bank played favourites amongst the funds in banking sectors.

Patni Computers and Financial Technologies were picked up by funds in the software industry. Industries like pharmaceuticals, personal care, mining, fertilisers and shipping also attracted few funds during October.

MFs booked profits in banking, auto ancillaries and software sectors, which witnessed poor performance in BSE's sectoral indices with negative returns - BSE Bankex (-13.65 per cent), BSE Auto (-5.6 per cent) and BSE TecK (-3.10 per cent). MFs have consolidated by partially exiting from certain stocks like State Bank of India, Maruti Udyog, Geometric Software, Bhel and Ranbaxy Labs.
 

THE SHEEN IS SHOWING
Scheme Name	NAV in Rs		% chg	Corpus in Rs crore		% chg
	Sep- 05	Oct- 05		Sep- 05	Oct- 05
Prudential ICICI Blended Plan  - Option A - Growth	10.25	10.31	0.59	1050.61	867.24	-17.45
PRINCIPAL Global Opportunities Fund - Growth	11.91	11.89	-0.14	16.24	15.25	-6.10
Franklin Infotech Fund - Growth	33.03	32.21	-2.48	151.94	147.72	-2.78
UTI Growth Sector Fund - Software - Growth	15.65	15.16	-3.13	201.58	192.38	-4.56
SBI Magnum Sector Umbrella - FMCG	17.33	16.69	-3.69	4.39	6.01	36.90
SBI Magnum Sector Umbrella - Infotech	14.83	14.23	-4.05	54.91	53.07	-3.35
DSP ML Technology.com Fund	13.77	13.17	-4.36	26.93	23.37	-13.22
Kotak Tech Fund	6.76	6.46	-4.41	49.52	45.97	-7.17
Birla India Opportunities Fund - Growth	34.31	32.78	-4.46	95.69	91.74	-4.13
UTI MNC Fund - Growth	26.69	25.35	-5.02	168.37	159.50	-5.27
Source: www.mutualfundsindia.com

JM Financial Mutual Fund made the largest net addition of 30 stocks. However, in terms of ratio of fresh entries to total exits, major portfolio churners were Kotak Mahindra Mutual Fund and SBI Mutual Fund. Net additions of 12 stocks each were made in portfolios of Kotak Mahindra Mutual Fund and SBI Mutual Fund.

The fresh entry to exit ratio was the highest for Kotak Mahindra Mutual Fund at four followed by SBI Mutual Fund (3.4) and JM Financial Mutual Fund (2.67).

No major churning was noticed in UTI Mutual Fund and Tata Mutual Fund¿s portfolio. The fresh entry to total exits ratio of UTI Mutual Fund stood at 0.33 and Tata Mutual Fund¿s ratio was at 0.43.

Among partial exits and partial entry in stocks, JM Financial, Prudential ICICI, SBI and Birla Mutual Funds were the most active churners. These funds have handled between 82 to 134 stocks during the month.

Following the fall in secondary market during the month of October with BSE Sensex dropping by 8.6 per cent and S&P CNX Nifty by 8.86 per cent, equity diversified schemes registered poor performance in their NAVs.

Funds with more than Rs 1,000 crore corpus have reported negative returns in their NAVs during the month of October. Major losers within the category were Pru ICICI Infrastructure Fund by -9.9 per cent and HSBC Equity Fund by -8.5 per cent return in their NAV.

Mid sized equity diversified funds with corpus ranging from Rs 300 crore to Rs 1,000 crore also posted negative returns in their NAV. Tata Infrastructure, with a loss of 10.4 per cent, and Pru ICICI Dynamic Fund, with a loss of 9.9 per cent, were amongst the major losers in their NAV.

Whereas HDFC Top 200 Fund and Birla Advantage Fund outperformed the comparable CNX Midcap, which fell by 8.6 per cent during the period. HDFC Top 200 Fund lost its NAV by 5.5 per cent and Birla Advantage Fund NAV dipped by 6.2 per cent.