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Fund Pick: Magnum Open-end

Background

Magnum Open-end, an open-end balanced fund provides for periodic dividend. The fund has a 70 percent allocation to equities and rest in debt. Initially the fund was flexible with its asset allocation based on its view of market. Launched in September 95 while the market was on a downhill, the fund was tilted towards debt. However, since the beginning of 1998 the fund increased and maintained its equity allocation to 70 percent of the portfolio. Magnum Open-end gave a 1:10 bonus in November 1997.

Performance

In a falling market for few years since its launch and following its flexible asset allocation strategy the fund was unable to deliver any return. However, the fund was successfully able to guard assets, though with high volatility. The fund also trailed behind aggressive peers like Alliance '95. Since 1998, the fund increased its equity allocation and consolidated its equity positions. The increased equity allocation, a consolidated portfolio and the rising equity market has driven the significant comeback by the fund.

The top 15 equity holdings of the fund constitute 62 per cent of the portfolio with the fund being overweight in Infotech, Pharma and FMCG stocks which is being reduced with inclusion of cyclical stocks, its bid to strike a balance between non-cyclical and cyclical stocks. The fund has significantly outperformed the all equity Sensex despite its debt allocation. As on September 30, 1999, the fund is up 37.60 per cent over the past three months and up 75 per cent over the past one year. The fund ranks #2 over the past three months among 15 open-end balanced funds.

Outlook

The fund has a quality equity and debt portfolio. The fund looks attractive for investors seeking steady income and appreciation as well. The fund has no entry load but charges a 2 percent exit load.

FUND BASICS
Objective	Size	NAV:22/10	Exit Price	Entry Price	Total Returns
Growth	95 Cr	20.08	19.68	20.08	21.74% pa
BENCHMARK COMPARISONS (%)					30/9/99
	1M	3M	6M	1Yr	3Yr
Fund	5.6	37.6	25.6	74.8	26
Sensex	0.8	13.8	20.7	37.6	53.5
Nat. Index	-1.0	9.5	17.4	34.2	50.7
Obj. Avg.	1.8	10.2	11.5	24.2	10.0
TOP HOLDINGS EQUITY (30/09/99)					Net Assets %
Zee Telefilms					5.58
Ramco Industries					5.54
Dabur India					5.22
Infosys Technologies					5.0
Dr. Reddy'S Laboratories					4.77
Sri Adhikari Brothers Television Network					4.56
Ashok Leyland					4.55
Agro Dutch Foods					4.66
Archies Greetings					3.49
Shasun Chemicals and Drugs					3.35
Bharat Electronics					3.34
Larsen and Toubro					3.16
Vikas Wsp					3.13
Aftek InfosysBusiness Machines					3.11
Indo Gulf Fertilisers					3.03
TOP HOLDINGS (30/09/99)					Net Assets %
Reliance Industries					8.03
NALCO					2.42
State Bank of Hyderabad					1.25
State Bank of Travencore					1.23

Mutual Funds

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