Wednesday, April 22, 2009

>Money Advisor (RELIANCE MONEY)


Mutual Fund Update
The report reviews the performance of all open ended equity schemes and debt schemes covered by Reliance Money. The performance has been reviewed as on March 2009.

Performance Overview
The markets witnessed a sharp correction in the beginning of the month of March, 09, however by the end of the month investors started investing money since the valuations were looking attractive and the markets have recovered by almost 10%. Mutual funds who were holding tightly to cash positions have now slowly started deploying the money however many fund houses are still cautious with their investment approach. The overall performance of the schemes has gone up in the last month. Among large cap funds, Templeton India Growth Fund and Principal Large Cap Fund emerged as toppers on a monthly basis with 10.73% and 8.03% absolute returns as against the category average of 5.5%. While on a yearly basis, IDFC Imperial Equity Fund and DSP BlackRock Top 100 Equity Fund have topped the charts outperformed their benchmark indices as well as exceeded category average.

The Midcap and Smallcap category have continued to under perform as a whole as compared to other equity categories. However with the recovery in the markets the funds within this category performed well on a one month basis. Within this segment SBI Magnum Midcap Fund and Franklin India Prima Plus were gainers and reported 7.9% and 6% absolute returns respectively. While on an annualized basis, Franklin prima plus and Reliance Growth were among the leaders while Fortis Future Leaders Fund and SBI Magnum Sector Umbrella - Emerging Business Fund were among the laggards.

Being the tax saving month, ELSS witnessed a net inflow of Rs.547 crore in the month of March 2009 which was higher as compared to industry expectation given the market conditions. However the inflows were subdues as compared to the figures of previous fiscal. Among ELSS funds, ICICI Prudential Tax Plan and Reliance Equity Linked Saving Fund - Series I were among the toppers.

Gold ETF is another category which has come in the limelight with the recent upsurge in gold prices. Gold ETFs have outperformed every other asset class rising 22.8% for the year ending March 30, gold funds that invest in gold mining
companies and mutual funds (MFs), which have an exposure in such companies, too, have joined the Bull Run.

To see full report: MONEY ADVISOR