Mutual Fund Pick

Unit Scheme-1964
'With the declining dividend and the reality of a NAV-based pricing lower than its current repurchase price, US-64 ceases to be a 'safe and risk-free' investment.'

JM G-Sec Regular
'JM G-Sec Regular Fund may have yielded exceptional returns with 17.75 per cent return since launch but this return is for a brief period and based on a very aggressive portfolio.'

UTI Master Index Fund
'An index fund by definition settles for being an average performer.'

Alliance GSF Long Term Fund
'The fund has posted a one-year return of just 8.02 per cent, while its peers have provided an average return of 12.91 per cent.'

Franklin India Balanced Fund
'The fund has adopted a conservative strategy of a less volatile debt portfolio but it would be too early to take a stance on its performance given its brief track record.'

Prudential ICICI Growth Fund
'Prudential ICICI Growth has delivered a reasonable 24.35 per cent to beat its benchmark index on the back of a diversified yet tech-heavy portfolio.'

Prudential ICICI Balanced
'While the fund may take a while to stabilise, it should provide long-term performance if the re-aligned stance continues.'

Templeton India Growth
'With the results starting to trickle in for Templeton India Growth Fund, it could well end up as a candidate for core holding, if it continues with its reworked ideology.'

HDFC Growth Fund
'Though HDFC Growth Fund has got its investment framework in place now, it will take time to offer returns to the investor.'

Birla Advantage Fund
'Given its past track record and its stance on technology, the fund is likely to pursue an aggressive investment strategy, which calls for a long-term commitment.'

Zurich India Top 200
'Even though Top 200 carries a lower risk quotient with a quality conscious diversified portfolio, its active management is yet to see it outperform its category.'

LIC Bond
'A return since launch of 13.83 per cent reflects the gains that emanated from its medium quality portfolio held earlier. While the fund has shifted focus on quality with a steady growth in corpus, it remains to be seen if the returns can be sustained in future.'

Canpremium (RO)
'If you want a mix of equity rather than a whole hog debt fund, but would want to restrict the risks of equities, Canpremium, a debt-oriented balanced fund, is a good anchor.'

DSPML Equity Fund
'Though the fund stands diversified today, it has to be seen whether the new fund manager continues to maintain the same complexion for steady returns.'

Grindlays Super Saver Income
'While the fund is too young to be evaluated, Grindlays Super Saver Income seems to prefer holding a conservative credit quality, while actively managing the interest rate risk.'

Kothari Pioneer Infotech Fund
'Within its narrow investment basket, the fund scouts for companies, which have the ability to create long-term wealth by surviving through the worst of market phases.'

Canexpo
'With the fund continuing to have an average 60% in TMT sector and 30% of the portfolio in Infosys, unpleasant surprises in the future cannot be ruled out.'

Sun F&C Value Fund
'While the fund toned down its tech exposure and has a diversified structure, it remains to be seen if this continues.'

Reliance Income
'Failing to leverage the advantage of its medium-sized corpus, Reliance Income has emerged an average performer. '

Birla Income Plus
'Birla Income is an attractive investment option for its stability and track record. '

HDFC Income
'While its too early to comment on the performance, the fund seems to have got its moorings right.'

Magnum Balanced
'With the fund badly bruised, it is now attempting to turn a new leaf by adopting the tenets of “balanced” philosophy.'

Tata Pure Equity
'The fund should be able to give investors a steadier ride, provided it sticks to the diversification theme.'

Sundaram Bond Saver
'Aided by a medium-sized corpus and active portfolio management, the fund has moved to the top quartile in its league.'

DSPML Bond Fund
'With an ideal size of Rs 8.70 billion, DSPML Bond Fund is well positioned to pursue a nimble-footed strategy.'

Kothari Pioneer Bluechip
'With its conservatism, KP Bluechip is not likely to be a blockbuster performer. However, with its low-risk growth orientation, it is now a worthy candidate for your core portfolio.'

Prudential ICICI Income
'With a secular growth in corpus, this fund has emerged to be a stable sized fund. With its emphasis on safety and steady returns, the fund offers attractive returns with moderate risk.'

Unit Scheme-95
'US-95 is a conservative balanced fund, yet has an aggressive equity exposure. It has declared a 15 per cent dividend with the record date on January 22.'

UTI Services Sector Fund
'The fund has declared its second dividend of 20 per cent with book closure from January 20-28, 2001. For investors, the yield works out to 7.12 per cent.'

Alliance Liquid Income
Alliance Liquid Income has guarded the portfolio against interest rate risk by largely maintaining a portfolio with a lower maturity.

Prudential ICICI Liquid Plan
'Prudential ICICI liquid fund has since launch given an annualised return of 9.68 per cent.It also offers easy exit within 24 hours as also cheque writing facility on its investment after 5 days of investment.'

Birla Equity Plan
'While Birla Equity is volatile with its aggressive strategy, investments through the systematic investment plan and beyond the minimum three years of investment should benefit.'

Franklin India Growth Fund
'Short-term dynamics apart, the quality and the diversified portfolio of this fund should yield reasonable returns in the long run.'

Jardine Fleming India Bond Fund
'The fund is clearly not a top of the category fund, but is not lower down on the performance ladder either. The fund holds a good appeal for its quality portfolio.'

Canexpo
'Canexpo is a small sized aggressive equity fund with a sizeable position in Infosys Technologies and overweight on technology stocks. The fund has strong gain potential with wild gyrations.'

UTI Petro Fund
'UTI Petro Fund holds good long-term gain potential.'

Magnum LIF
'The large size of the fund would impart it a fair degree of stability guarding it against any sudden redemption pressure. However, a volatile debt market and frequent management change (the fund has seen three fund managers in the last 3-months) has adversly impacted the fund.'

UTI Index Equity Fund
'Being overweight on the ICE sector, the fund will be susceptible to volatility.'

UTI Master Value Unit Plan
'UTI Master Value Unit Plan is a fund with an orientation towards mid and small-cap stocks.'

UTI Equity Opportunity Fund
'Even if the fund would have taken the opportunity of weeding out its illiquid stocks in the surging markets of 1999, investors should exit the fund in favour of other funds with superior performance track-record.'

UTI Equity Opportunity Fund
'UTI Equity Opportunity Fund has a quality portfolio poised for rapid growth with the small size to its advantage. However, its stock and sector concentration will keep it volatile.'

Birla Balance Fund
'Despite a third of its corpus in debt, the fund will be susceptible to higher volatility compared to its peers due to a concentration in few stocks in a single sector.'

Birla MNC Fund
'Considering the long-term potential of pharma and fmcg sectors, it might be just the right time to invest in this fund.'

Templeton India Liquid Fund
'The fund is suited for risk-averse investors.'

Magnum Equity Fund
'This is one of the most aggressive and volatile funds among diversified equity funds.'

Dundee Liquidity Fund
'Investors looking for returns better than short-term debt funds with moderate risk taking appetite may invest in the fund.'

Chola Triple Ace
'The fund for its high credit quality and medium term outlook will yield steady returns with less volatility.'

Alliance Liquid
'The fund has been a steady performer with a quality debt portfolio.'

Alliance Equity
'It needs to prune the ICE exposure in Alliance Equity to reasonable limits. Else, the fund will continue to be volatile.'

Magnum Balanced Fund
'With its current portfolio distribution, the fund still has a high exposure to ICE stocks, which could make it volatile.'

Libra Leap
'The fund could deliver high returns but is an abnormally risky investment proposition.'

KP Internet Opportunities Fund
'This fund is unlikely to be as volatile as a technology fund with lower risk-returns and should prove to be more rewarding than a diversified equity fund with reasonable stability.'

Zurich India Top 200
'Since the fund follows a buy-and-hold approach, the scheme may be good for investors seeking above average returns with greater stability.'

Morgan Stanley Growth Fund
'MSGF looks poised for being an above average performer. And the prevailing discount on the fund offers an excellent opportunity for long-term investors.'

Reliance Growth Fund
'Having strayed away from quality stocks within the software sector, the fund had to pay the price with a 47 per cent decline in the recent carnage.'

Magnum Multiplier Plus Scheme 1993
'Though the over-exposure to the ICE sector will make the fund volatile, it has a quality portfolio that should give favourable returns in the long term.'

ICICI Power
'Though ICICI Power is a sector fund, the range of industries it can invest into makes it a well diversified fund rather than a focused sector fund.'

Zurich India Capital Builder
'Though the fund's returns don't stack up against its peers, given its well balanced portfolio strategy, the fund is likely to deliver above average returns with greater stability.'

Masterplus '91
'The fund will be a key beneficiary of a broad-based rally.'

GIC D'Mat
'The fund can only be considered as a short-term arbitrage opportunity or for convenience of liquidating demat stocks held in physical form.'

Kothari Pioneer Income Builder
'This fund is well managed with focus on credit quality.'

Zurich India Prudence
'This fund is suited for investors, with a low appetite for risk, seeking superior returns from a balanced portfolio.'

Kothari Pioneer Taxshield '96
'Given the fund's quality portfolio, it will give favourable returns but with high volatility.'

Unit Scheme '95
'Unit Scheme '95 has flexibility to invest up to 60 per cent in equities, the dividends paid by the fund will be exempt from the dividend tax. However, to be on safe side and to avoid tax incidence, only the growth plan should be considered.'

Templeton India Income Fund
'Templeton India Income Fund has been a steady performer with a quality debt portfolio.'

Kothari Pioneer Taxshield '95
'For its quality portfolio, this fund will give favourable returns.'

First India Tax Gain '97
'Launched in the bear markets of 1997, the fund started off on an uninspiring note, underperforming the Sensex in its first year. It was often valued below par and also missed the brief rally in 1997. However, it started posting secular gains since April of 1998 and this spree has continued unabated.'

Canpep '94
'Canpep '94 can give favourable returns but with its concentrated bets in infotech sector, it would be volatile.'

Sundaram Taxsaver '97
'Sundaram Taxsaver '97, a diversified fund, spread across quality stocks, is ideally suited for investors seeking steady returns from equities.'

Canpep '95
'Canpep '95 is a well-diversified fund and has quality stocks in its portfolio. The change in market sentiment in favour of the underlying sectors of the fund will improve returns.'

Canpep '92
'Canpep '92 is poised to deliver average performance and will benefit to some extent from the change in market sentiment in favour of its quality portfolio.'

UTI MEP '92
'Given its well-diversified portfolio, MEP '92 can be a steady performer and beneficiary of the recent change of heart favouring cyclicals.'

LIC Dhan 88 (1)
'The restructuring of Dhan 88 (1) in favour of the growth stocks has brought about a turnaround in the performance of the fund. But going by the track record of the fund and other equity funds of LIC Mutual Fund, the fund is unlikely to be a consistent performer.'

Tax I-Nit '96
'IDBI Tax I-Nit '96 is expected to yield good returns over the long term.'

GIC Growth Plus II
'GIC Growth Plus II is well-diversified across quality new and old economy stocks. The fund is an attractive long-term investment for its diversified portfolio, and its pricing policy discourages short-term investors from the fund.'

UTI Mastergain
'Mastergain '92 is an unattractive long-term investment given its size and portfolio orientation. The aggressive strategy being followed now looks incompatible for its size. Investors seeking superior performance should exit Mastergain in favour of aggressive yet well-diversified smaller equity funds.'

Reliance Growth Fund
'Based on its current portfolio, Reliance Growth Fund is a high-risk, high-reward fund. The fund will gain significantly if the current boom is sustained. However, in case of a market downturn, the fund could get hurt badly. The fund is suited for investors seeking a short-term boom ride.'

Kothari Pioneer Infotech Fund
'Given the bright outlook for infotech stocks, Kothari Pioneer Infotech Fund has the potential to deliver above average returns. However, the fund is not suited for conservative investors seeking steady returns, as the volatility can be very high.'

Prudential ICICI Tax Plan
'An investment of Rs 10,000 at the current entry levels will not only provide a tax-free dividend of Rs 2358, but also a tax rebate of Rs 2000. The fund should sustain its good performance in the long run.'

Magnun Balanced Fund
'Magnum Balanced owes its recent performance to few big bets, which have gained sharply. The fund has a modest allocation to quality debt paper too.'

Zurich India Equity Fund
'Zurich India Equity Fund is actively managed and sharply focused. It is expected to achieve aggressive growth from equities.'

UTI Primary Equity Fund
'The fund is attractive for its focus and small size. However, the load structure of the fund is uncompetitive.'

Alliance Equity Fund
'Alliance Equity Fund has been successfully able to ride the momentum in select stocks with high turnover.'

Magnum Equity Fund
'From being an evenly diversified fund across stocks and sectors, the fund has turned aggressive with increased concentration in its top holdings and few sectors.'

Tata IT Fund
'With a bright outlook for the infotech sector, the fund will be able to return reasonable performance figures. However, the sharp focus in only one sector will make the fund susceptible to wild gyrations.'

Tata Income Fund
'Tata Income Fund has reported strong growth weathering the changes effectively with an impressive 17.8 per cent annualised return in its cumulative option throughout the tenure.'

UTI Mastershare
'Better valuations for PSU stocks in the future as divestment gathers momentum will mean further returns. Mastershare is attractive for its dividend yield and appreciation potential for investment till its redemption or open ending.'

UTI Software Fund
'The fund can be an attractive medium-term investment for a 10-20 per cent allocation of your total portfolio, given the bright outlook of information technology sector. However, the fund is not suited for investors seeking steady returns.'

Birla IT Fund
'Birla IT Fund (earlier Apple Platinum) will now be a focused infotech fund.'

Sun F&C Value Fund
'The Sun F&C Value Fund has put up an impressive performance in 1999 and is suited for investors seeking steady gains from equities.'

Tata Tax Saving Fund
'Given the bright outlook for the sectors and select stocks therein, the fund is suited for investors with an appetite for a volatile fund. The fund has declared another tax-free dividend of 20%, which can be availed of by the investors investing by 14th January 2000.'

Magnum Taxgain '93
'The fund has given a total annualised return of 24.43% since launch. A large component of these returns was gained over the past one year. For the year ending November 30, 1999 the fund is up 210% against a 67% gain in Sensex.'

Canpep '93
'Given its complexion today, Canpep '93 is tax saving infotech fund. Given the bright outlook for the sector and select stocks therein, the fund is suited for investors with appetite for a volatile fund.'

Alliance Capital Tax Relief '96,
'The fund has the potential to give significant returns despite the already ruling high NAV. The fund could prove highly rewarding investment with a tax break of 20% rebate with a 3-year lock-in and 1% entry load.'

K-30
'The fund has a good balance of a quality and diversified portfolio with focus on long-term capital appreciation. K 30 could be a good long-term investment.'

Canpremium
'The fund is suited for a fixed-return investor seeking higher returns than bond funds without assuming any significant risk.'

Sundaram Growth Fund
'The portfolio of the fund has a large to mid-cap orientation with companies having good potential for growth. As a result the fund has a limited downside. Besides, the adequate diversification, across different sectors, debt and money market instruments, is unlikely to witness wild gyrations.'

Morgan Stanley Growth Fund
'MSGF looks poised for being an above average performer. And the prevailing steep discount on the fund offers an excellent opportunity for long-term investors.'

ITC Top 200
'In its brief two-year history, Top 200 fund has been a steady performer. The fund has outperformed its benchmark index over most time periods. The focused portfolio strategy pursued by the fund has worked very well.'

Alliance '95
'Alliance '95 is of special appeal to conservative investors seeking steady return with capital appreciation. Besides, the fund looks attractive for being less volatile than an all equity fund.'

Magnum Open-end
'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.'

Canbonus
'Canbonus has the potential to beat the benchmarks in a rising market owing to its active management. Canbonus is attractive for investors seeking steady returns from equities.'

Masterplus '91
'Masterplus has been a significant beneficiary with the improvement in the outlook of the cyclical stocks in the current stock market rally. With the momentum of the cyclical stocks gaining solidity combined with increasing market fancy for PSU stocks, Masterplus will be a key beneficiary.'

Magnum Multiplier Scheme '90
'MMS'90 has been a consistent performer in its long history of nine years. In its initial years, the fund was market's darling in 1992 during the great Indian scam and traded at 200 per cent premium to its NAV.'

Zurich India Quantum Growth Fund
'The fund with-its quality large-cap stock portfolio is poised for solid steady returns. Investment in the fund has little downside with the market rally gaining breadth.'

GIC Growth Plus II
'Growth Plus II could be an attractive long-term investment for its well diversified equity portfolio. With the economy showing strong signs of a turnaround and the cyclicals and value stocks expected to perform well, the fund can be expected to even better its recent past performance.'

UGS 10000
'UGS 10000 has been a significant gainer since its launch in May 1998. The latest NAV of the fund as on September 1, 1999 stands at Rs 16.30, an annualised gain of 47.36% since launch, against a 23.80 percent gain in Sensex, during the same period'

Source: Value Research