Mutual Funds: Good Picks
Research Desk
UTI OPPORTUNITIES
Objectives and strategy
The scheme aims at increasing returns by investing in stocks that are responding to the dynamically changing Indian economy. Investments move from one sector to another depending on new opportunities emerging from changing economic trends.
Fund Manager
UTI Opportunities Fund is managed by Mr.Harsha Upadyaya since March 2007. The Fund was launched in July 2005.
Performance
The fund started to do well after the new fund manager took over in 2007 and it made a return of 71% for the calendar year as against the category average of 59%. It has beaten the category average return and the market return with a considerable margin in 2007. In the difficult year of 2008, it could bring down losses to 49% while the category average recorded a loss of 55% and the indices declined by nearly 52%.
Recent performance also looks good with 96% growth for the last one year. Overall, the fund appears to be an outperformer and has got five star rating from Value Research.
Portfolio
Assets Under Management (AUM) of the scheme is Rs 849 crore and 86% of this has been deployed in equities. Nearly 78% of the equity exposure is in large caps and the remaining in mid caps.
Value Research Rating
The scheme has been rated as a low risk fund with high returns.
HDFC Equity
Objectives and Strategy
This scheme was launched in December 1994 with the objective of increasing returns by investing predominantly in high growth companies. The scheme strictly follows the same sectoral weight of S&P CNX 500.
Fund Manager
The Fund has been managed by Mr. Prashant Jain since June 2003.
Performance
The scheme manages to provide attractive returns and yielded 23% annualised return since its launch. Fund has an annual return of 63% in 2005 which is far better than the category average of 47%. It had a growth of 36% and 54%, respectively in 2006 and 2007, while the category average for the same period was 35% and 60%. In the difficult year of 2008 the loss could be limited to 50% (Category Average 55%) . It had an impressive return of 116% in 2009 when the same category funds gained only 85%.
Portfolio Exposure
This equity oriented fund has invested 52% of the corpus in large cap stocks. By parking 38% of the fund in the mid cap sector it is exploring the growth opportunities in this segment also. Major portion of the fund is deployed in financial, energy and healthcare stocks.
Value Research Rating
Value Research has ranked the risk of the scheme as below average and return is expected to be above average.
DSP BR Top 100
Objectives and Strategies
The fund seeks to generate capital appreciation by investing in equities or related instruments of the 100 largest corporates by market capitalization. As such, the fund may have portfolio exposure in large cap equities and its derivative instruments.
Fund Manager
DSP BR Top 100 Equity fund is managed by Mr. Apoorva Shah since April 2006.
Performance
The fund has a four star rating by Value Research and has a growth of 47% (Category Average 35%) in 2006. Its performance has improved in 2007 and gained 65% while the category average was 59%. It was also successful in limiting the loss to 45% which is less than the category loss of 55% in 2008. In 2009 the fund has grown by 77%.
Portfolio Exposure
DSP BR Top 100 has invested 80% of its net assets in large cap equities and the remaining in mid caps. The fund has diversified its exposure into stocks from 12 leading sectors and the largest exposure is seen in the Energy sector. Banking, Technology, Healthcare and Engineering stocks also have a prominent place in the portfolio.
Value Research Rating
Risk grade – Low, Return grade – Above Average
Magnum Contra
Objectives and Strategy
The fund appears to be one among the best performers for the long term with attractive returns. The scheme aims to invest in undervalued scrips which are out of flavour but have the potential to show considerable growth in the long term.
Fund Manager
Magnum Contra has been managed by Mr. Pankaj Gupta since 2007.
Performance
The Fund has been beating the category average continuously for the past five years. In 2006 the fund had a growth of 50% (Category Average 35%). Its performance improved in 2007 and yielded 66% while the category average is 59%. The management was able to reduce the loss to 53% in 2008.
Portfolio Exposure
A large cap oriented fund with 65% of the portfolio in large cap stocks, Magnum Contra has minor exposure in mid cap and small cap stocks and the portfolio is fairly diversified. The fund has exposure into 13 segments and the main holdings are energy and financial sector stocks.
Value Research Rating
Risk grade – Average, Return grade – Above Average