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Best and worst funds of November

Aabhas Pandya

After going through a spell of coincidental lows, both debt and equity markets are creeping back cautiously. The post Diwali-month saw Indian markets dominated by the repercussions of the US presidential election and the global meltdown. The tech heavy Nasdaq, which has been the Pied Piper to Indian markets, is currently trading at 50 per cent of its high witnessed in March this year. Bellwether technology stocks on the Nasdaq have also issued profits warnings for the year. Despite the negative sentiments, a sharp rebound came later in the month on the back of a defensive shift in favour of the old economy stocks, led by cement and PSU counters. Apart from talks of divestment in PSUs, bargain hunters are aggressively buying old guards, which are trading at attractive valuations. Pharma also found favour on the back of impressive second quarter results.

While languishing below the psychological 4000-point mark, the BSE Sensex moved up by 287 points or a gain of 7.73 per cent in November, thanks to the bullish trend in the last week of November. Amid the early month lows, foreign institutional investors were seen bottom fishing at attractive valuations and were net buyers to the tune of Rs 8.96 billion. Mutual funds, on the other hand, emerged net sellers and liquidated assets worth Rs 3.88 billion.

Diversified equity funds

In a month, which saw the BSE Sensex lodge a gain of 7.73 per cent, the Value Research category of 64 diversified equity funds gained lower at 4.79 per cent. Despite its tech heavy portfolio, UTI Equity Tax Savings Plan has posted the maximum gain of 13.84 per cent, thanks primarily to its active management. GIC Growth Plus II has posted a gain of 11.51 per cent. The month has seen funds with a healthy exposure to cyclicals gaining smartly, amidst the tech volatility.

Dhansamriddhi from LIC Mutual Fund was a contrarian with a loss of 6.49 per cent last month. Two of the Birla funds - Birla Advanatge and Birla Equity Plan, with their portfolios committed to the technology theme, are down 1.77 per cent and 0.54 per cent, respectively.

Top gainers	1-month return (%)
UTI Equity Tax Savings Plan - 2000	13.84
GIC Growth Plus II	11.51
GIC D'Mat	9.79
Zurich India Top 200 Fund	9.53
Boinanza Exclusive Growth	9.18
UTI Master Growth	9.04
GIC Fortune '94	8.88
UTI Mastergain '92	8.69
K 30 Unit Scheme	8.48
UTI Master Plus '91	8.18
Category Average (64 funds)	4.79

Top losers	1-month return (%)
Dhansamriddhi	-6.49
Birla Advantage	-1.77
Tata Tax Saving Fund	-1.14
Birla Equity Plan	-0.54
Dundee Taxsaver	-0.24

Sectoral - IT/Technology

With the Nasdaq continuing its domino effect on the bourses, the Value Research category of technology funds has maintained status quo. And like the presidential election in the US, it has been a case of a split verdict. Sun F&C Emerging Technology Fund, while still quoting below par, has emerged the top gainer with a return of 4.33 per cent. UTI Software has emerged second in the category with a return of 1.82 per cent. Kothari Pioneer Internet Opportunities fund with an exposure to non-conventional technology stocks such as Hindustan Lever has posted a gain of 1.53 per cent.

Birla IT led the loser's pack with a return of 3.73 per cent, with Tata IT fund following closely at 3.38 per cent. Interestingly, both these funds were diversified equity funds but were converted to technology-dedicated schemes earlier in the year.

Top gainers	1-month return (%)
Sun F&C Emerging Technologies	4.33
UTI Software	1.82
Kothari Pioneer Internet Opportunities	1.53
IL&FS eCOM	1.52
DSPML Technology.com	0.86
Category Average (13 funds)	-0.02%

Top losers	1-month return (%)
Birla IT	-3.73
Tata IT	-3.38
Magnum IT	-2.11
Prudential ICICI Technology	-1.13
K Tech	-0.47

Sectoral - FMCG

With the markets under a bout of defensive buying, the Value Research category of FMCG funds has gained 5.56 per cent. Prudential ICICI FMCG topped the charts with its top holdings with a reasonable price appreciation. The fund gained 8.48 per cent in November though the NAV is still hovering below par.

Top gainers	1-month return (%)
Prudential ICICI FMCG	8.48
Magnum FMCG	4.48
Kothari Pioneer FMCG	3.73
Category Average (3 funds)	5.56

Top losers	3-month return (%)
Prudential ICICI FMCG	-7.07
Magnum FMCG	-6.34
Kothari Pioneer FMCG	-4.88

No losers

Sectoral - Pharma

Pharma funds too were in the positive territory and the sector posted an average gain of 3.38 per cent in November. UTI Pharma and Healthcare, with its aggressive management and non-pharma holdings such as Infosys and Reliance was the frontrunners. The only pharma fund trading above par today, it posted a gain of 7.85 per cent in November.

Top gainers	1-month return (%)
UTI Pharma & Healthcare	7.85
Magnum Pharma	1.46
Kothari Pioneer Pharma	0.84
Category Average (3 funds)	3.38%

No losers

Equity - Speciality

The Value Research Speciality category is essentially a group of non-comparable fund which cannot be slotted elsewhere. This variegated category posted an average gain of 5.71 per cent. Buoyed by talks of divestment and a PSU-heavy portfolio, UTI Petro has gained a whopping 16.47 per cent in the last month. Kotak's K-MNC with nearly 50 per cent allocation to FMCG and pharma counters gained 8.17 per cent. With broad-based buying in cyclicals during the month, Magnum Contra with its focus on out of favour stocks gained 7.95 per cent.

The group's sole loser, Tata Life Science & Technology shed 1.61 per cent with 64 per cent allocation to technology stocks.

Top gainers	1-month return (%)
UTI Petro	16.47
K-MNC	8.17
Magnum Contra	7.95
DSPML Opportunities	7.24
UTI Services Sector	7.07
Category Average (12 funds)	5.71

Top losers	1-month return (%)
Tata Life Sciences & Technology	-1.61

Balanced funds

With both equity and debt markets in positive territory, the Value Research category of 31 balanced funds posted an average gain of 2.86 per cent. Funds that have struck to a relatively diversified equity portfolio have made it to the monthly topper's slot. UTI's ULIP gained the maximum at 9.21 per cent while GIC Balanced was a close second at 7.72 per cent.

The high concentration of technology stocks continued to hurt funds. Birla AMC has a losing fund in this category too. With its ICE exposure at 32 per cent in October 2000, Birla Balance lost 0.66 per cent, while Dundee Balanced shed 0.45 per cent (technology exposure at 34 per cent).

Top gainers	1-month return (%)
Unit Linked Insurance Plan '71	9.21
GIC Balanced	7.72
Cantriple +	6.15
K Balance Unit Scheme '99	5.68
Zurich India Prudence	5.42
Category Average (31 funds)	2.86

Top losers	1-month return (%)
Birla Balance	-0.66
Dundee Balanced	-0.45

Debt markets

While equity managers may continue to seek direction, debt markets are in for better times for sure. Armed with massive inflow of $ 5.5 billion, thanks to the India Millennium Deposits windfall, the markets have rebounded in November. The inflows, besides shoring up reserves, have lent a fresh lease of life for debt markets. Consequently, even though the rupee continued its downslide, it had little impact on the debt markets. Flushed with liquidity, the bond markets witnessed a brief rally in November.

While there is an undertone of optimism, the negatives still persist. Even though the government has completed close to 80 per cent of its borrowing, the divestment programme has not gone very far and thus, the borrowing target may be overshot. Further, with a volatile rupee, oil pool deficit and rising inflation, it remains to be seen when will the rally in the bond markets lose steam.

Thanks to the bullish sentiment, the sovereign bond index, i-BEX posted a convincing gain of 1.63 per cent in November, with the JP Morgan treasury-bill index moving up by 0.90 per cent over the same period.

Debt with marginal equity

This category posted an average gain of 1.15 per cent in November. Kothari Pioneer Pension Plan, with a 37 per cent exposure to equity, has gained 2.67 per cent in November to emerge the top gainer in the league.

Top gainers	1-month return (%)
Kothari Pioneer Pension Plan	2.67
Templeton MIP-G	1.33
Templeton MIP-DQ	1.28
Category Average (11 funds)	1.15

No losers

Debt-Medium term

With debt markets making a strong comeback, the Value Research category of medium term debt funds, have gained 1.09 per cent on an average. There are no losers in this category.

With a brief rally, PNB Debt with its concentrated exposure to long dated government bonds, gained the maximum at 2.13 per cent. Kothari Pioneer Income Builder and IDBI Principal Deposit Bond Fund gained 1.34 and 1.31 per cent, to take second and third slots, respectively.

Top gainers	1-month return (%)
PNB Debt	2.13
Kothari Pioneer Income Builder	1.34
IDBI Principal Deposit Bond Fund-Growth	1.31
DSPML Bond	1.27
Prudential ICICI Income Plan	1.23
Templeton India Income	1.21
Chola Freedom Income	1.21
Reliance Income	1.21
K-Bond Wholesale	1.21
ANZ Grindlays Super Saver Income Fund	1.18
Category Average (36 funds)	1.09

No losers

Short-term debt funds

With normalcy returning to the debt markets and call money rates remaining soft, the Value Research category of debt short term funds posted an average gain of 0.70 per cent. Zurich India Liquidity Investment raced ahead of 27 other funds with a return of 0.85 per cent.

Top gainers	1-month return (%)
Zurich India Liquidity Investment	0.85
Sundaram Money	0.82
Dundee Liquidity	0.81
Zurich India Liquidity Saving	0.80
K-Liquid Plan	0.79
Category Average (27 funds)	0.70

No losers

Long and medium term gilt funds

In times of rally, funds with a longer maturity gain the most. Further, the more liquid the paper, the higher the appreciation. With gilt funds holding a longer maturity by charter, this category has posted an average gain of 1.31 per cent. Here, Cholamandalam Gilt Investment with portfolio maturity at around four years topped the category with a return of 2.74 per cent.

Top gainers	1-month return (%)
Chola Gilt Investment	2.74
JM G-Sec PF Plan	1.82
Tata GSF-G	1.82
Templeton India GSF-D	1.70
JM G-Sec Regular Plan	1.68
Category Average (28 funds)	1.31

No losers

Short-term gilt funds

With no losers in this category, the family of eight short-term gilt funds is up by 0.87 per cent. Prudential ICICI Gilt Treasury, with a portfolio maturity of two years, takes the top slot with a return of 1.05 per cent in November.

Top gainers	1-month return (%)
Prudential ICICI Gilt Treasury	1.05
Birla Gilt Plus Liquid Plan	1.02
DSPML GSF Plan B	1.00
Category Average (8 funds)	0.87

No losers

Money

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