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ICICIdirect Mutual Fund

Value 50

the

VALUE
Indias Best Mutual Funds

In Pursuit of Simplicity
Investment is an insightful mixture of science and art.
And the raison d'tre of Value Research is to digest the
science and provide investors an insight into the art of
intelligent investing. The Value 50 is a step in that direction. In fact, the Value 50 is our endeavour to serve that
category of investors who feel lost in the jargonised
world of betas, standard deviations and Sharpe ratios
and yet have an insatiable urge to invest and earn
returns. That is not to say we are unmindful of the needs
of our number-crunching customers. They are well
served by the Value Research Scorecard, which is intended to be a standard measuring scale against which the
performance of every Indian mutual fund can be measured. Since meaningful comparisons can only be made
between funds that are alike, a major effort going into the
Scorecard is aimed at categorising the funds accurately
so that we do not end up comparing apples with oranges.

However, the financial goals of some investors are not


as finely classifiable as these fund categories. Their
needs are simpler and they are better served by a smaller selection of funds, which is divided among fewer categories. Using the Value 50, all that you are required to
do is to decide on your asset allocation between equity
and debt, or maybe not even that if you are investing in
balanced funds. After that, simply put the bulk of your
investments in a core fund of that category and invest the
remaining in any of the non-core categories that suits
your goal. Moreover, unlike the Scoreboard, the Value 50
has an element of subjectivity. We have reasons for
choosing the funds we have, which go beyond just numbers, and we have given you a flavour of those reasons by
saying a sentence or two about each fund and we have
given you a hint in the few sentences that go with each
fund. Hope, you find this selection worthwhile.
January 15-February 14, 2008 Mutual Fund Insight 41

the

VALUE

Value 50 is a tightly-packed capsule of fund information.


Heres how to use the graph and numbers to help you
choose the right fund.
BOND FUND STYLE

EQUITY FUND STYLE

A nine-box matrix that displays both


the fund's investment approach and
size of companies in which it invests.
Vertically, the three squares indicate
size orientation of fund from the
bottom, small-cap, mid-cap and
large-cap. Horizontally, the three
squares indicate, from left to right,
three stages on the value-to-growth
spectrum. Figures in the boxed
represent percentage of investments in
the respective matrix.

Mid Low

The left-most bar in a series


represents the funds performance in
the first quarter of a calendar year.
Similarly, subsequent bars represent
the funds performance in second,
third and last quarter of the calendar
year. All data as on December 31,
2007. Returns up to 1 year are
absolute and above 1 year are
annualised.

00 00 00

High

Third Quartile
(Among bottom 25-50% in the category)
Bottom Quartile
(Among bottom 25% in the category)

Credit Quality
High Mid Low

Interest Rate Sensitivity

Second Quartile
(Among top 50-75% in the category)

00 00 00
00 00 00

Capitalisation

Top Quartile
(Among top 25% in the category)

Valuation
Growth Blend Value
Large Mid Small

PERFORMANCE CONSISTENCY

Indias Best Mutual Funds

A graphical presentation of the


investment style of the fund. The
vertical axis conveys short, medium
and high maturity which are classified
by Value Research as being less than
one year, between one and three
years, and greater than three years,
respectively. Credit quality is presented
across the X-axis and is classified into
three groups-high, medium and low.
These credit quality ratings are based
on a relative scale in which the credit
quality of an individual fund is assigned
a score and the range of that score is
then divided into these three ranges.

the

Fund Name
Fund Rating
Fund Manager
(Manager's Tenure)
Launch Date

VALUE
2003

Performance Consistency
2004
2005
2006

2007

Trailing Returns
Period
(%)

Style Box
Comments

Diversified equity funds are ideal for forming the core of every long-term investors portfolio. They
capture the gains made by a broad range of stocks while shielding their portfolios from the worst of
the volatility that the markets face periodically.

Mahesh Patil
(3 years)
August 2002

DSPML Equity Fund


Apoorva Shah
(2 years)
April 1997

DSPML T.I.G.E.R. Reg


Soumendra Nath Lahiri
(3 years)
May 2004
42 January 15-February 14, 2008 Mutual Fund Insight

69.9
55.8
55.3
63.8
44.2

1-year
2-year
3-year
5-year
Since launch

62.3
54.8
50.3
51.1
48.1

1-year
2-year
3-year
5-year
Since launch

70.3
58.3
56.5
62.9
32.0

1-year
2-year
3-year
5-year
Since launch

82.9
67.0
62.4

64.4

Valuation
Growth Blend Value

28 5 18
24 3 9
7

One of the better funds in the category, its


investments span across large- and mid-caps.
Its stock bets have often kept it ahead of the
curve. After being acquired by Birla Sun Life
in 2005, it has stayed on course.
Low volatility is a mark of this large-cap
oriented portfolio. It may have lagged its
peers in the mid-cap rally of 2003-2005, but it
proved its ability in 2006, when large caps
soared.
A judicious mix of large and quality mid-cap
stocks and a well-diversified portfolio make it
a decent choice for investors who wish to add
some aggression to their portfolios without
compromising on safety.

Capitalisation
Large Mid Small

Birla Sun Life Frontline Equity

1-year
2-year
3-year
5-year
Since launch

Capitalisation
Large Mid Small

Mahesh Patil
(3 years)
August 1998

Capitalisation
Large Mid Small

Birla Sun Life Equity

Capitalisation
Large Mid Small

EQUITY: DIVERSIFIED

Indias Best Mutual Funds

Don't be confused by the complex acronym of


TIGER (The Infrastructure Growth and
Economic Reforms). It has proved to be a
well diversified solid equity fund delivering
good reurns from a blended all-cap portfolio.

Valuation
Growth Blend Value

29 7 18
21 1 14
7
Valuation
Growth Blend Value

22 3 18
19 11 10
11

Valuation
Growth Blend Value

42 9 15
18 4 4
3

the

Fund Name
Fund Rating
Fund Manager
(Manager's Tenure)
Launch Date

VALUE
2003

Performance Consistency
2004
2005
2006

2007

Trailing Returns
Period
(%)

Style Box
Comments
Indias Best Mutual Funds

HDFC Equity
Prashant Jain
(5 years)
December 1994

Srinivas Rao Ravuri


(2 years)
August 2000

Magnum Contra
Pankaj Gupta
(Less than 1 year)
July 1999

53.6
44.5
50.3
57.8
26.9

1-year
2-year
3-year
5-year
Since launch

66.4
54.9
49.7
56.2
32.6

1-year
2-year
3-year
5-year
Since launch

66.6
54.7
52.9
56.7
35.4

1-year
2-year
3-year
5-year
Since launch

66.3
58.2
62.3
72.1
38.3

1-year
2-year
3-year
5-year
Since launch

69.7
53.3
56.2

58.6

1-year
2-year
3-year
5-year
Since launch

61.3
51.7
49.2
59.5
37.6

Srividhya Rajesh
(3 years)
June 2004

Tata Pure Equity


M Venugopal
(3 years)
May 1998

38 8 20
22
1
4

Managed by one of Indias finest equity fund


managers, its an optimum balance between
aggression and stability. Despite its recent
weak relative returns, its abilty to withstand a
sustained market decline makes it a keeper.

Valuation
Growth Blend Value

29 8 10
25 7 13
7
Valuation
Growth Blend Value

34 12 9
20 6 1
14

Low volatility and a large-cap oriented


portfolio has worked very well for the fund.
The recent numbers are impressive thanks to
the large-cap led market rally.

Valuation
Growth Blend Value

50 10 25
8
2

Like some other large-cap dominated funds


on this list, it also prefers consistency over
flashy returns. It has the ability to deliver good
returns with a portfolio of about 30 stocks.
Don't expect a trail-blazing performance.
A contrarian view has helped the fund
generate breathtaking returns of late. It picks
stocks that are undervalued and out of favour.
Contra can add another investing style to your
portfolio.

Valuation
Growth Blend Value

30 5 17
28 2 9
4
Valuation
Growth Blend Value

26 10 14
19 7 13
11
Valuation
Growth Blend Value

33 15 21
12 6 11
2

Capitalisation
Large Mid Small

1-year
2-year
3-year
5-year
Since launch

The strategy is simple - while large-caps


generate stable returns, a small exposure to
mid- and small-cap stocks add the additional
punch. An experienced management team
gives the fund a lead over its peers.

Valuation
Growth Blend Value

Capitalisation
Large Mid Small

Sundaram BNP Paribas India


Leadership

54.9
52.1
50.6
55.2
25.9

Capitalisation
Large Mid Small

Sanjib Guha,
Krishna Sanghvi
(Less than 1 year)
December 1998

1-year
2-year
3-year
5-year
Since launch

Capitalisation
Large Mid Small

Kotak 30

53 12 21
7 2

Apt to be a core holding. Its resolve to stick to


its large-cap mandate, even when others
flocked to mid-caps, makes it one of the most
trustworthy funds. Began to show its old
vigour with the large-cap rally of last year.

Capitalisation
Large Mid Small

HDFC Growth

47.4
46.5
44.7
52.8
31.3

Proven to be a high quality equity fund. With


a focus on industry leaders and emerging
leaders, it moves across all market caps. Its
recent returns make it an attractive offering.

Slowly and steadily emerging as one of the


better options for equity fund investors. Its
investment canvas is wide as it can invest in
mid- as well as large-cap stocks. The fund
does not hesitate to go against the herd.

What diversified funds do not try to capture is the extreme upper reach of the returns that stock
markets occasionally offer. Aggressive ones try to nimbly move from one hot area and company to
the next, always seeking to stay where ever the quickest growth is

R Rajagopal (2 years)
Bajrang Kumar Bafna
(Less than 1 year)
December 2003

Anup Maheshwari
(2 years)
April 2000

1-year
2-year
3-year
5-year
Since launch

87.1
61.1
52.8

45.4

1-year
2-year
3-year
5-year
Since launch

59.8
51.7
51.1
60.7
32.9

Valuation
Growth Blend Value

34 7 11
8 6 9
16 3

Solid returns from diversified, but well timed,


large cap bets make it an attractive
opportunity fund. The fund rarely ventures into
obscure names.

Valuation
Growth Blend Value

34 12 15
20 4 7
5

Capitalisation
Large Mid Small

DSPML Opportunities

Capitalisation
Large Mid Small

DBS Chola Opportunities

EQUITY: AGGRESSIVE

Sukumar Rajah (14 years)


Anand Radhakrishnan
(Less than 1 year)
September 1994

1-year
2-year
3-year
5-year
Since launch

Capitalisation
Large Mid Small

Franklin India Prima Plus

Capitalisation
Large Mid Small

K N Siva Subramanian
(15 years)
Anand Radhakrishnan
November 1993

Capitalisation
Large Mid Small

Franklin India Bluechip

Valuation
Growth Blend Value

At launch, this fund was positioned as an


aggressive equity fund. But it has effectively
been run like a standard diversified equity
fund. It looks for opportunities in industries
that are expected to do well.

January 15-February 14, 2008 Mutual Fund Insight 43

the

Fund Name
Fund Rating
Fund Manager
(Manager's Tenure)
Launch Date

VALUE
2003

Performance Consistency
2004
2005
2006

2007

Trailing Returns
Period
(%)

Style Box
Comments
Indias Best Mutual Funds

ING Domestic Opportunities

JM Basic

Asit Bhandarkar
(2 years)
June 2005

Kotak Opportunities

Reliance Vision
Ashwani Kumar
(4 years)
October 1995

Sundaram BNP Paribas Select


Focus

1-year
2-year
3-year
5-year
Since launch

76.9
57.9
61.4
72.6
37.0

1-year
2-year
3-year
5-year
Since launch

56.6
51.1
51.9
60.7
31.6

1-year
2-year
3-year
5-year
Since launch

79.2
63.5
57.1
58.5
54.9

1-year
2-year
3-year
5-year
Since launch

63.1
61.9
61.8
71.4
64.5

Srividhya Rajesh
(6 years)
July 2002

Sundaram BNP Paribas Select


Midcap

3
Valuation
Growth Blend Value

10
6
35 8 23
16

In 2002, the fund overhauled the portfolio to


focus on mid-caps and has never looked back
since. With an ultra-concentrated growth-led
portfolio, it has been a top quartile performer
in each of the last three years.
An unconventional diversified equity fund, this
one can be accommodated in all long-term
portfolios. With a portfolio laden with smalland mid-cap stocks, it has delivered superb
returns over the years.
By shuffling its portfolio between large- and
mid-caps, this fund has earned handsome
returns for its investors. Astute stock picking
is the hallmark of this fund. It does not
hesitate to try untested stocks.
The fund has been impressive in its short
history so far. Good stock selection has been
at work here. It does not mind taking
concentrated bets and has a large-cap
blended portfolio.
Coming from a disciplined fund house, it has
displayed the ability to think against the herd.
A well-diversified portfolio and top quartile
returns in the last four calendar years place it
in the league of hottest mid-cap funds.

Valuation
Growth Blend Value

29 1 13
26 8 5
5 1
Valuation
Growth Blend Value

20 4 8
15 2 8
11
Valuation
Growth Blend Value

24 19 23
26
4
2
Valuation
Growth Blend Value

46 16 24
8
4

Valuation
Growth Blend Value

4 1 10
32 8 23
18

The fund has delivered stellar returns from a


widely diversified stock portfolio. Well timed
bets and bias towards quality show extremely
impeccable stock picking in its limited history.

This fund has been one of the greatest


beneficiaries of the mid-cap rally, which has
helped it stage a strong comeback. But be
ready to take a lot of risk here. Don't be
surprised if you get only small- and mid-caps.

Sector-specific funds are risky, no doubt, but some sectors periodically keep returning to the
markets' centrestage. Funds that invest smartly in these can capture the extreme returns that these
hot sectors frequently generate, as long as one is prepared for the volatility.
DSPML Technology.com
Apoorva Shah
(2 years)
April 2000

44 January 15-February 14, 2008 Mutual Fund Insight

Not Rated

1-year
2-year
3-year
5-year
Since launch

58.0
52.2
52.9
49.9
18.4

Valuation
Growth Blend Value

10 1 6
37 12 2
28 1

Capitalisation
Large Mid Small

EQUITY: SUPPORTING

Satish Ramanathan
(Less than 1 year)
July 2002

25 7 22
26 5 4

Capitalisation
Large Mid Small

Sunil B. Singhania
(4 years)
October 1995

64.9
57.2
61.4
64.4
19.1

Valuation
Growth Blend Value

Capitalisation
Large Mid Small

Reliance Growth

1-year
2-year
3-year
5-year
Since launch

39

The basic industry mandate of the fund made


it a blockbuster in 2007. But this fund is not
for the cautious investor, given its limited
mandate to invest in sectors which seem too
hot to handle now.

Capitalisation
Large Mid Small

Jayesh Shroff
(2 years)
February 1993

52.4
54.5
62.0
70.4
19.4

4
4
29 4 6

Capitalisation
Large Mid Small

Magnum Multiplier Plus

1-year
2-year
3-year
5-year
Since launch

Valuation
Growth Blend Value

Capitalisation
Large Mid Small

Ritesh Sheth,
Vivek Pandey
(Less than 1 year)
September 1994

91.0
62.8
61.4

65.6

13

The fund is not an opportunistic play but is


proving to be a good diversified equity fund.
Here we see decent returns with low risk
owning to its sectoral and stock spread.

Capitalisation
Large Mid Small

Magnum Global

1-year
2-year
3-year
5-year
Since launch

41 9 13
11 6 4

Capitalisation
Large Mid Small

Krishna Sanghvi,
Anurag Jain
(Less than 1 year)
August 2004

1-year
111.4
2-year
73.9
3-year

5-year

Since launch 68.7

Valuation
Growth Blend Value

Capitalisation
Large Mid Small

Not Rated

60.4
50.8
50.5

55.6

Capitalisation
Large Mid Small

Manish Bhandari
(2 years)
August 2004

1-year
2-year
3-year
5-year
Since launch

The funds stretched definition of technology


has helped it stay ahead of the pack. Not a
bad choice for believers in the technology
sector, even though the sector is undergoing
an unfavourable period.

the

Fund Name
Fund Rating
Fund Manager
(Manager's Tenure)
Launch Date

VALUE
2003

Performance Consistency
2004
2005
2006

2007

Trailing Returns
Period
(%)

Style Box
Comments
Indias Best Mutual Funds

Not Rated

Sunil B. Singhania
(4 years)
April 2004

Not Rated

Sailesh Raj Bhan


(3 years)
September 2004

Gautami Desai
(3 years)
April 2004

UTI Infrastructure
Sanjay Ramdas
Dongre
(3 years)
April 2004

83.6
62.8
55.7

54.4

1-year
2-year
3-year
5-year
Since launch

66.5
47.9
39.9

39.4

1-year
2-year
3-year
5-year
Since launch

72.0
66.7
63.4

56.9

22
Valuation
Growth Blend Value

18 14 5
16 1 1
7
Valuation
Growth Blend Value

22 7
50 3
Valuation
Growth Blend Value

29 27 20
7
12
2

The only media fund may be an excellent


choice for investors willing to bet on the
explosive growth of media and entertainment
stocks.

Invest in this fund if you want to take a


concentrated bet on some of the largest
banks of the country. The fund invests in a
small portfolio of about 15 stocks, with a
heavy presence in large-caps.
This fund derived advantage out of the
infrastructure boom to top the diversified
equity category in 2006. With the optimism
for the infrastructure theme still intact, expect
more from it.

Valuation
Growth Blend Value

36 12 11
24 5 5

The blockbuster of 2007 has been hugely


rewarding every since its launch. The bulging
asset base notwithstanding, the fund shows
no symptoms of slowing down.

Capitalisation
Large Mid Small

Not Rated

1-year
2-year
3-year
5-year
Since launch

Smart stock picking from mid-sized FMCG


companies has translated into excellent
returns. Not only has it beaten the BSE
FMCG index over the last three years, but is
also miles ahead of its two peers.

Capitalisation
Large Mid Small

UTI Banking Sector

1-year
124.4
2-year
88.8
3-year
86.3
5-year

Since launch 76.2

18
51 8

Capitalisation
Large Mid Small

Reliance Media &


Entertainment

42.7
33.4
51.2
48.2
22.2

Capitalisation
Large Mid Small

Reliance Diversified Power


Sector

1-year
2-year
3-year
5-year
Since launch

Tax-saving funds are the ideal way for very small investors to invest in equity. The tax you save is
an attractive padding for the investment gains that you'll get and the mandated lock-in period
enforces one of the best things that an investor can have a long-term perspective.

HDFC Taxsaver
Vinay R. Kulkarni
(2 years)
March 1996

Sudhanshu Asthana,
Jayesh Shroff
(Less than 1 year)
March 1993

Sundaram BNP Paribas


Taxsaver
Satish Ramanathan
(Less than 1 year)
November 1999

1-year
2-year
3-year
5-year
Since launch

39.4
36.8
48.4
60.9
43.0

1-year
2-year
3-year
5-year
Since launch

55.3
50.0
64.0
73.8
24.3

1-year
2-year
3-year
5-year
Since launch

80.8
61.0
55.8
58.9
28.3

1-year
2-year
3-year
5-year
Since launch

68.4
49.1
52.5
60.2
31.7

14 8 19
14 4 14
26

Aggressive churning, swift moves, and timely


entry and exit into opportunistic sectors makes
this a rewarding tax-saving fund. A relatively
small asset size provides agility to exploit less
liquid small- and mid-cap opportunities.
This fund has proved its worth in all market
conditions and has everything that one looks
for in a good tax-planning fund. It has
excelled in both bull and bear markets and
deserves a position in all equity portfolios.

Valuation
Growth Blend Value

34 12 14
19 3 6
6
Valuation
Growth Blend Value

33 6 14
21 3 6
4
Valuation
Growth Blend Value

13 7 12
14
7
37 4 2

This one is emerging as a compelling option


among the ELSS funds. The fund
aggressively invests in mid- and small-caps
but mitigates risk through a high degree of
diversification at the stock level.
The fund has consistently been above
average. It maintains a widely diversified large
cap portfolio. Justifies its place as a core
holding offering a tax break in an equity
portfolio.

Valuation
Growth Blend Value

28 6 16
16 5 6
15

The fund swiftly moved up the ratings ladder


from one to five stars, on the back of breathtaking performance. It has benefited from the
mid-cap rally, and its first rank for three
consecutive years till 2006 is no flash in the pan.

Capitalisation
Large Mid Small

Shyam Sunder Bhat


(Less than 1 year)
March 1996

Valuation
Growth Blend Value

Capitalisation
Large Mid Small

Principal Tax Savings

55.9
44.7
48.0
60.2
36.2

Capitalisation
Large Mid Small

Magnum Taxgain

1-year
2-year
3-year
5-year
Since launch

Capitalisation
Large Mid Small

Sanjay Chawla
(Less than 1 year)
February 1999

Capitalisation
Large Mid Small

Birla Equity Plan

EQUITY: TAX-PLANNING

Not Rated

Prashant Kothari
(3 years)
March 1999

Capitalisation
Large Mid Small

ICICI Prudential FMCG

Valuation
Growth Blend Value

January 15-February 14, 2008 Mutual Fund Insight 45

the

Fund Name
Fund Rating
Fund Manager
(Manager's Tenure)
Launch Date

VALUE
2003

Performance Consistency
2004
2005
2006

2007

Trailing Returns
Period
(%)

Style Box
Comments

The ultimate goal of a hands-off investors is to find an ideal balanced fund just one fund can be
enough. The best equity-oriented hybrid funds offer a large percentage invested in a conservative
stock portfolio and rest in fixed-income securities that protect gains when markets turn hostile.
Umesh Kamath
(2 years)
January 1993

Prashant Jain
(14 years)
January 1994

Kotak Balance
Ritesh Jain (3 years)
Sanjib Guha,
Krishna Sanghvi
November 1999

Magnum Balanced

Tata Balanced

1-year
2-year
3-year
5-year
Since launch

51.3
41.7
38.1
41.7
22.6

Valuation
Growth Blend Value

1-year
2-year
3-year
5-year
Since launch

43.2
38.2
41.3
46.7
24.8

Valuation
Growth Blend Value

1-year
2-year
3-year
5-year
Since launch

51.8
40.7
41.5
42.0
25.5

Valuation
Growth Blend Value

1-year
2-year
3-year
5-year
Since launch

48.4
41.0
43.2
48.2
22.9

Valuation
Growth Blend Value

1-year
2-year
3-year
5-year
Since launch

55.4
44.8
40.1
42.9
21.1

Valuation
Growth Blend Value

16 2 14
15 9 7
9

8 4 6
23 7 13
15

24 2 13
13 5 3
8

24 4 11
21
2
14

25 9 9
12 1 8
10

Steady above average return derived from a


large-cap portfolio and high yielding fixed
income instruments inspires confidence.
Small asset base is another plus.

A diversified equity portfolio, quality debt,


relatively low expense ratio and below
average standard deviation makes this fund
one of the better balanced funds around. A
good choice for conservative investors.
HDFC Prudence's superb returns would do
even an equity fund proud. Traditionally a
large-cap dominated fund, a shift of focus
towards mid- and small-caps since late last
year has worked very well.
A diversified equity portfolio, coupled with
quality debt investments, has made sure that
this fund outperforms the category across
time periods. The fund derives strength from
its ability to change with time.

Capitalisation
Large Mid Small

M Venugopal
(3 years)
October 1995

43 20 10
8
1

Capitalisation
Large Mid Small

Ritesh Sheth
(Less than 1 year)
October 1995

Valuation
Growth Blend Value

Capitalisation
Large Mid Small

HDFC Prudence

43.5
39.5
40.8
39.9
14.1

Capitalisation
Large Mid Small

Apoorva Shah
(2 years)
May 1999

1-year
2-year
3-year
5-year
Since launch

Capitalisation
Large Mid Small

DSPML Balanced

The balanced fund which gives the feel of an


equity fund. Suited for investors seeking
aggressive growth from a hybrid portfolio.

A less aggressive offering. It has managed to


fall less than the category average during
trying times, and, consequently, has not
strayed too far from the average returns
during the good times.

MIPs are essentially debt funds which carry a small (10-15 per cent) equity that can add a dash of
extra returns. While all MIPs obviously have monthly dividend plans, the category is misnamed.
MIPs are best treated as a variation of balanced funds that is meant for more conservative investors.

Pankaj Tibrewal
(Less than 1 year)
December 2003

UTI MIS-Advantage Plan


Amandeep Singh Chopra
(4 years)
December 2003

46 January 15-February 14, 2008 Mutual Fund Insight

3-month
1-year
2-year
3-year
Since launch

7.3
18.2
15.4
15.7
14.4

Credit Quality
High Mid Low

3-month
1-year
2-year
3-year
Since launch

13.0
25.8
16.6
14.2
12.3

Credit Quality
High Mid Low

3-month
1-year
2-year
3-year
Since launch

8.6
18.4
15.4
15.5
13.4

Credit Quality
High Mid Low

A high equity exposure led by mid- and smallcaps, active duration management and
exposure to lower rated paper has resulted in
above average volatility. High returns
compensates its high risk strategy.
This small sized MIP has proved its worth
with a consistently high return in its category.
Its selectivity, with an average 20% equity
allocation, is key to its performance.

Interest Rate Sensitivity


High Mid Low

Principal MIP Plus

Interest Rate Sensitivity


High Mid Low

Prashant Jain (4 years)


Shobit Mehrotra
(Less than 1 year)
December 2003

Interest Rate Sensitivity


High Mid Low

HDFC MIP Long-term

Substantial equity exposure has meant higher


volatility. Investment in lower rated paper
suggests an aggressive stance. But all risk
has been worth the returns it generates. Low
expense ratio is an advantage.

HYBRID: MIP

Canara Robeco Balance II

Capitalisation
Large Mid Small

EQUITY: EQUITY-ORIENTED

Indias Best Mutual Funds

the

Fund Name
Fund Rating
Fund Manager
(Manager's Tenure)
Launch Date

VALUE
2003

Performance Consistency
2004
2005
2006

2007

Trailing Returns
Period
(%)

Style Box
Comments

Bond funds offer a straightforward proposition stable returns that continue more or less unchanged
through all kind of upheavals. Of course, the interest rate declines of the last two years have meant
some extraordinary returns, but the future holds a more conservative promise.
Birla Income Plus
Maneesh Dangi
(Less than 1 year)
October 1995

Kotak Flexi Debt

Credit Quality
High Mid Low

3-month
1-year
2-year
3-year
Since launch

2.2
8.7
7.5
6.7
7.5

Credit Quality
High Mid Low

3-month
1-year
2-year
3-year
Since launch

2.1
8.5
7.8
7.2
7.2

Credit Quality
High Mid Low

Among the oldest open-ended income funds,


it is proving its mettle in recent times. With
returns almost twice as much as the average
fund in the category (2007), the fund is a
compelling income avenue.
Low risk, modest return, a high quality
portfolio and flexibilty to move in the
rewarding bond segment makes it an
attractive choice.

This fund thrived on turbulence to deliver topnotch returns in the last two calendar years. A
conservative stance on interest rates
(average maturity of less than one year)
helped it sail through.

Maneesh Dangi,
Satyabrata Mohanty
(Less than 1 year)
April 2002

Tata Short-term Bond


Murthy Nagarajan
(3 years)
August 2002

1-month
3-month
6-month
1-year
Since launch

0.7
2.2
5.0
10.1
6.6

Credit Quality
High Mid Low

1-month
3-month
6-month
1-year
Since launch

0.7
2.1
5.0
9.7
6.9

Credit Quality
High Mid Low

Low risk, high return and the lowest expense


ratio- it doesn't get any better than this for a
short-term debt fund. This fund has achieved
that with a portfolio characterized by high
credit quality and a low maturity profile.

Interest Rate Sensitivity


High Mid Low

Birla Sun Life Short-term

Decent return and modest expense coupled


with a five-star rating make it a good choice.
The high-credit quality and low maturity profile
ensures that capital remains protected.

Ultra short-term funds are best used as an alternative to leaving short-term money in a current or
even a savings account in a bank. While these funds' portfolios carry negligible risk, the low returns
mean that they are worth the trouble only if your investment is at least Rs 10 lakh or so.
1-month
3-month
6-month
1-year
Since launch

0.7
2.0
3.7
7.8
6.3

Credit Quality
High Mid Low

1-month
3-month
6-month
1-year
Since launch

0.7
2.0
3.8
8.0
6.5

Credit Quality
High Mid Low

Amruth K Rao
(6 years)
January 2002

LICMF Liquid
Ashish Kumar
(4 years)
March 2002

Interest Rate Sensitivity


High Mid Low

Interest Rate Sensitivity


High Mid Low

Canara Robeco Liquid


Retail

It's tough to beat the economy of Canliquid


Retail. The fund had been one of the least
expensive funds in the category - it charges
just 0.22 per cent as against the category
average expense ratio of 0.55 per cent.

DEBT: ULTRA SHORT-TERM

Short-term debt funds are designed to enable investors to park funds for periods from three months
to an year. They invest in securities that match this period and protect investors from the vagaries
of fluctuating interest rates.
Interest Rate Sensitivity
High Mid Low

DEBT: SHORT-TERM

Ritesh Jain (3 years)


Deepak Agrawal
(Less than 1 year)
November 2004

4.4
12.6
9.0
7.4
10.6

Interest Rate Sensitivity


High Mid Low

Rahul Goswami
(3 years)
September 2002

3-month
1-year
2-year
3-year
Since launch

Interest Rate Sensitivity


High Mid Low

ICICI Pru Flexible Income

Interest Rate Sensitivity


High Mid Low

DEBT: MEDIUM-TERM

Indias Best Mutual Funds

The fund takes risky bets frequently as the


average maturity of holdings exceeded 200
days on many occasions. But the fund has
been able to convert all those bets into above
average returns for its investors.

January 15-February 14, 2008 Mutual Fund Insight 47

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Securities Limited (I-Sec) is not responsible for any error or inaccuracy or for any losses suffered on account of information contained in this
news letter. For Risk factors and other details, prospective investors are advised to refer to the full offer document of the respective schemes
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