The Hindu Business Line : Equity funds: Long-timers score century

Big scorers Birla Equity, Birla MNC and HDFC Equity have NAVs well above the magic mark A good number of funds have NAVs that are well above Rs 50.

Kolkata , April 24

Here is a list of centuries that may turn the Indian cricket team envious. Net asset values of a record number of equity funds have crossed the Rs 100-mark, thanks to a market that has been cruising ahead.

With the Sensitive Index nudging past 12,000 points, equity fund investors are said to be a delighted lot, as valuations are keeping pace with the broad market. The situation is reflected well in the NAVs - a growing inventory of schemes that have moved past Rs 100 or are nearly there.

Not surprisingly, the select list is replete with schemes that have been around for a fairly long time. Some of the big scorers have been in existence almost since the days when the asset management industry was first opened up to private players.

Open-ended schemes

While mutual fund circles warn that NAVs per se should never be seen as a factor that may prompt investment decisions, they concede that valuations reached by the heavyweights seem to be standing out in the crowd. And it looks better in view of the fact that lots of open-ended schemes have just started their journey.

Consider funds such as Franklin India Bluechip (NAV: Rs 117.87 in the growth option, as on April 21), Franklin Prima Plus (Rs 119.60), Birla Advantage Fund (Rs 115.99) and HDFC Tax Saver (Rs 140.92).

Some of these, as MF sources point out, are legacies, given their origin in outfits such as Kothari Pioneer and Zurich, both of which have moved out of the industry for reasons of their own. At the very top, incidentally, is Franklin India Prima, which has an NAV of Rs 201.03. This scheme was originally known as Kothari Pioneer Prima.

There are others as well. Birla Equity, Birla MNC and HDFC Equity have NAVs well above the magic mark - Rs 159.82, Rs 121.83 and Rs 131.62 respectively. Among the relatively newer entities is Reliance Vision Fund, which in the growth plan/growth option has a NAV of Rs 165.06.

A few of the open-ended tax savers are also being cited in this context. These include Franklin India Taxshield, which has a NAV of Rs 125 or so. Incidentally, a second tax-saving scheme from the HDFC MF stable is also inching closer to the Rs 100-mark. This is HDFC Long Term Advantage Fund, which was earlier called HDFC Tax Plan 2000; the NAV here is Rs 87.65.

A good number of funds have NAVs that are well above the Rs 50-mark, it is pointed out. These include older schemes such as Birla Basic Industries as well as late entrants like Sundaram Select Focus.

More Stories on : Mutual Funds | Performance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IMD sees monsoon just below normal

Hutch-Orascom deal hits a roadblock

Equity funds: Long-timers score century

EID Parry, Cargill to set up sugar refinery in AP

FMCG micro-branding in top gear

Sun TV gains 67.5 pc on debut day

Dell opens community computer centre

iGate picks 5% stake in Loan Pro

Liquidity improving, say banks