Relying on large-caps

FUND PICK: Franklin India Taxshield

Returns in % as on March 17, 2005

Equity diversified fund returns were somewhat under pressure on the back of falling stock prices over the past couple of weeks. 
 

Equity funds Category average returns
	1 month	1 year
Banking	9.92	55.06
FMCG	4.78	50.01
Tax planning	1.69	46.20
Technology	0.88	44.74
Diversified	2.07	38.61
Asset allocation	1.85	34.43
Pharma	0.54	34.26
Index	1.91	19.44
Petroleum Sensex	-0.85	8.00

Yet, of 96 equity diversified funds, 63 managed to outperform the BSE Sensex, which gave a return of 1.21 per cent over the past month. 
 

Leaders Top 10 equity diversifiled funds
	1 month	1 year
SBI Magnum Global	5.82	94.20
Taurus Starshare	8.59	73.85
UTI Dynamic Equity	4.41	72.49
Taurus Discovery	0.00	71.01
Reliance Growth	3.87	68.98
Sundaram Midcap	3.35	68.50
HDFC Capital Builder	2.57	66.94
Franklin India Prima	1.72	65.47
Birla Mid Cap Fund	3.90	58.20
Tata Growth Fund	5.07	53.27

Their record over the past one year has been exemplary, with all funds - barring five of 77 schemes - beating the benchmark. Diversified funds gave a return of 38.61 per cent on an average, while the Sensex returns amounted to only 20.48 per cent. Banking sector funds were in the forefront, while petroleum sector funds were the least impressive. 
 

Laggards Bottom 10 equity diversified funds
	1-month	1-year
UTI Variable Invest	0.33	10.69
LIC Equity Fund	1.21	13.82
UTI Index Select	0.28	17.63
GIC D MAT	-1.02	18.20
UTI Masterplus	0.39	22.28
SBI Magnum Equity	-1.41	23.27
PRINCIPAL Equity	1.48	23.77
LIC MF Growth	1.07	23.82
UTI Mastershare	0.58	24.41
Franklin Bluechip	0.78	24.72

 

Clarification

In the Fund Monitor section of The Smart Investor issue dated March 21, 2005, we inadvertently classified UTI Variable Investment Scheme-Index Linked Plan as an equity diversified mutual fund scheme. The scheme falls under the category of asset allocation schemes and hence cannot be compared to other diversified schemes. We regret the error.

- Editor