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Investor education and awareness just got a new address
Jaago Investor. At Personalfn, we recognise, based on client interaction
and feedback, that there is a crying need to educate the investor and make
him aware of the snares and pitfalls in various ‘well-packaged’ and high
profile investment offerings. There is also the need to keep the investor
posted with the ‘other side’ of several issues (read negatives), when the
media, in its enthusiasm, chooses to highlight only the positives.
Many of these issues have already been discussed
threadbare on Personalfn. For instance, we forewarned the investor by
writing about the games fund houses play to garner higher NFO monies.
Increasingly, exit loads are being slapped by fund
houses on premature redemptions, in a well-meaning attempt to protect the
interests of the long-term investor. We exposed how exit load monies
collected by fund houses serve no one’s interests except those of the fund
houses.
Personalfn has always been in the forefront in taking
up these issues. It’s just that now investor awareness has got an
‘address’ and it’s at
Jaago Investor.
Mutual funds apart, even issues pertaining to areas
like life insurance, where mis-selling is even more rampant because of the
high commissions involved, will come under the scanner. Bottom line – if
there is an issue concerning the investor, that needs adequate
representation, as opposed to mis-representation, Personalfn will be
pleased to take it up.
Stock markets moved northwards and closed the week in
positive terrain. The BSE Sensex rose by 2.15%, before settling at 14,467
points; the S&P CNX Nifty closed at 4,252 points, up by 1.94%. The CNX
Midcap posted a gain of 3.10% and closed at 5,826 points.
Leading open-ended equity funds
| Equity Funds |
NAV (Rs) |
1-Wk |
1-Mth |
6-Mth |
1-Yr |
SD |
SR |
| Reliance Banking |
45.06 |
5.40% |
4.82% |
21.75% |
72.18% |
8.63% |
0.23% |
| JM Financial Services |
12.23 |
5.06% |
6.42% |
28.98% |
- |
- |
- |
| StanChart Premier |
16.67 |
4.95% |
8.41% |
28.73% |
67.75% |
8.73% |
0.24% |
| Reliance Pharma |
25.73 |
4.87% |
15.70% |
32.29% |
59.38% |
8.62% |
0.29% |
| UTI Thematic Banking |
23.51 |
4.82% |
3.93% |
16.39% |
71.48% |
8.31% |
0.27% |
(Source:
Credence Analytics. NAV data as on June 22, 2007.)
(The Sharpe Ratio is a measure of the returns offered by the fund
vis-à-vis those offered by a risk-free instrument) (Standard
deviation highlights the element of risk associated with the fund.)
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Sector funds dominated the proceedings in the equity
funds segment. Reliance Banking (5.40%) emerged as the top performer,
followed by JM Financial Services (5.06%) and StanChart Premier (4.95%).
Leading open-ended long-term debt funds
| Debt Funds |
NAV (Rs) |
1-Wk |
1-Mth |
6-Mth |
1-Yr |
SD |
SR |
| HDFC Gilt |
15.77 |
0.39% |
0.52% |
0.80% |
4.11% |
0.45% |
-0.73% |
| Reliance Gilt |
12.88 |
0.33% |
0.41% |
1.10% |
7.48% |
0.66% |
-0.20% |
| LIC GSec |
19.23 |
0.31% |
0.63% |
2.23% |
5.33% |
0.38% |
-0.43% |
| Escorts Income |
23.03 |
0.28% |
0.90% |
2.03% |
5.16% |
2.62% |
0.28% |
| Principal Gilt |
16.14 |
0.28% |
0.43% |
-1.00% |
4.25% |
0.68% |
-0.35% |
| (Source:
Credence Analytics. NAV data as on June 22, 2007.) |
The 10-Yr benchmark 8.07% GOI yield closed at 8.13%
(June 22, 2007, source: Reserve Bank of India website), 2 basis points
below the previous weekly close. Bond yields and prices are inversely
related, with falling yields translating into higher bond prices and net
asset value (NAV) for debt fund investors.
Gilt funds (government securities funds) stole the
march in the long-term debt funds segment. HDFC Gilt (0.39%) occupied the
top slot, followed by Reliance Gilt (0.33%) and LIC GSec (0.31%) at second
and third positions respectively.
Leading open-ended balanced funds
| Balanced Funds |
NAV (Rs) |
1-Wk |
1-Mth |
6-Mth |
1-Yr |
SD |
SR |
| LIC MF Balanced |
44.47 |
2.45% |
0.11% |
-0.58% |
19.75% |
5.82% |
0.25% |
| Principal Balanced |
23.08 |
2.35% |
1.72% |
7.75% |
23.62% |
5.45% |
0.26% |
| DSP ML Balanced |
43.07 |
2.23% |
3.18% |
14.49% |
38.95% |
4.72% |
0.46% |
| Canbalance |
29.58 |
2.21% |
2.89% |
7.33% |
21.03% |
5.06% |
0.20% |
| Magnum Balanced |
27.54 |
2.19% |
1.96% |
8.13% |
31.33% |
5.28% |
0.42% |
| (Source:
Credence Analytics. NAV data as on June 22, 2007.) |
LIC MF Balanced (2.45%) led from the front in the
balanced funds segment. Principal Balanced (2.35%) and DSP ML Balanced
(2.23%) also featured in the top performers’ list.
We urge investors not to get swayed by investment fads
and seemingly brilliant investment ideas. Often you will realise that more
than anything else, these ideas and fads are built on hype. The positives
when they are highlighted must be weighed alongside the negatives, which
are usually masked. Beware and be awake – Jaago Investor Jaago. |
