Mutual Funds:
Good PicksGeojit Research Desk
DSPML Top 100 Equity
The scheme has completed 5 successful years with improving performance and it seems that the current going is also satisfactory considering the difficult market conditions. The fund strategy and the performance in the long term so far, are encouraging.
The fund was launched in 2003 with the objective of generating capital appreciation from equities or equity related instruments of the 100 largest corporates by market capitalisation in the NSE or BSE. Because of its attractive investment strategy and favorable market conditions, the fund could steadily improve its performance from 25% in 2004 to 42.90% in 2006, and further to 46.60% and 64.93%, respectively for the successive years. The fund has erased 46% from its value till now in 2008 whereas the benchmark indices have lost over 52%.
The fund has deployed over 77% of its net assets in large cap stocks while 23% is invested in the mid cap pack. The portfolio also reveals a reasonable exposure in Nifty Futures.
Franklin India Prima Plus
The scheme aims to provide growth of capital and regular dividend from a portfolio of equity, debt and money market instruments and focussing on wealth creating companies across all sectors and market cap ranges.
Performance
The Fund has been providing above average returns while the risk is lower than the average. Return for 2004, 2005 and 2006 are 27.15%, 47.61% and 49.36%, respectively as against the category average return of 26.42%, 46.57% and 34.72%, respectively. The fund has also beaten the index return during this period with attractive margins. 2007 return at 54.90% has also surpassed the market returns though it appears to be a shade lower than the category average.
As a multi cap fund, Franklin India Prima Plus has exposure into large, mid cap and small cap companies but the highest exposure continues to be in the giant and large cap stocks. Over 39% of the assets are deployed in giant company stocks while another 31% are parked among large cap stocks. Exposure into mid cap and small cap stocks is 24.11% and 5.73%, respectively of the net assets.
Sectorwise, the fund has deployed 16.42% of the net assets in the technology sector and another 16.09% in the financial services sector. Consumer non-durables, services, basic engineering, energy and diversified companies are the other preferred sectors.
Sundaram BNP Paribas Select Focus
A diversified large cap equity fund with focused investment strategy that has been working very well. The fund has been awarded the best large cap equity fund by CRISIL for the year 2006 and 2007.
As a focused equity fund, Sundaram BNP Paribas Select Focus has been maintaining a limited number of holdings in its portfolio as compared to other diversified funds and this strategy has enabled it to be one of the leading performers in the category. At the same time, risk involved in such a strategy has been mitigated considerably by concentrating on the top rated giant and large cap stocks.
At the current valuation, the fund has returned around 30.58% annualised returns since its launch in 2002. It has been doing comparatively well in the difficult market conditions now beating the category average and market returns. Average annualised return for the last three years is 16.74% and the fund is one among the best five in this count. It has consistently been beating the index returns for the last five years and the return for 2007 was 79% while the Sensex and Nifty yielded 47% and 55% respectively.
Sundaram BNP Paribas Select Focus is currently managing net assets worth Rs. 916 crore. Nearly 88% of this fund has been invested in giant and large cap shares and a minor exposure is also seen in mid cap shares. Energy, financial services, technology, healthcare, consumer non-durables, diversified, basic engineering, services, chemicals and metals are the preferred sectors of the fund.
The fund is an excellent one for the long term, and regular investment could be considered through a Systematic Investment Plan.
Reliance Regular Savings Equity
Though the fund has not a very long track record to boast of, its performance since launch in 2005 looks impressive with 56% return in 2006 as against the index and category average return of 47% (Sensex return) and 35%, respectively. It did well in 2007 as well by clocking around 93% growth while the category average was in the range of 60%.
Reliance Regular Savings Equity is predominantly mid cap oriented with 62% of its net assets (Rs.733.55 crore) deployed in mid cap and small cap shares. Though the current market conditions are not favorable to these category stocks, the scheme continues to perform satisfactorily due to a well-structured portfolio. Recently, the fund has added Satyam Computers and United Phosphorus to its portfolio while the exposure has been increased in ICICI Bank, Pratibha Industries, HDFC Bank etc. The portfolio restructuring is expected to strengthen performance of the fund further.
HDFC Top 200
This fund has been doing very well, beating the category average returns and the major indices. For the last three and five years, the fund yielded at 11.83% and 22.70%, respectively on an annualised basis as against the category average return of 3% and 17.85%, respectively. The index returns for these periods are in the range of 7% and 14%.
The portfolio of the scheme is a good blend of large cap and mid cap stocks with 68% in large caps and the remaining is deployed in mid caps. The scheme is overweight in financial services, energy, technology, consumer non- durables and basic engineering.
