The Hindu Business Line : Dark horses race ahead in year-end rally

For investors in mutual funds, the latest rally in the market is routinely bringing relatively less known names to the fore - recent examples include Libra Taxshield and Taurus Discovery Stock, both of which have come out tops, beating some of their bigger and more talked-about rivals.

As performance numbers recorded during the week ended March 31 show, schemes such as Libra Taxshield and Standard Chartered Premier Equity have turned in smart scores, all in the 6.8-8.7 per cent range.

While investment circles clearly do not consider week-on-week performance as a good or steady measure, some sections have started describing the trend as one that investors may consider seriously.

However, a deeper understanding of these funds, including a closer look at their portfolios, is being strongly advocated.

A list worked out by Plexus Management, an MF distributor, has put Libra Taxshield, Taurus Discovery, and SC Premier Equity at the top, thanks to the 8.75 per cent, 7.56 per cent, and 6.83 per cent they have respectively delivered for the week ended March 31.

Following these are the likes of SBI Magnum COMMA, Deutsche Alpha Equity, Sahara Midcap, Birla Sun Life Tax Relief, and Prudential ICICI Tax Plan.

In each case, the returns have been five per cent-plus.

"Investors should be made aware that such options do exist, whatever the reason for their sudden performance may be," said Mr Prasunjit Mukherjee, who heads Plexus. However, not all the funds are being actively sold in the market, he added.

Others refer to what is being increasingly considered a big issue: too much attention that some of the relative non-performers sometimes grab, courtesy investors who do little more than merely following lop-sided advice doled out by certain intermediaries.

Also, the fact that average weekly returns are often a modest 2-4 per cent is being underscored here.

As estimates prepared by Value Research show, pharma funds have ended as the top gainers during the week, their average score being 3.51 per cent. FMCG funds, with 3.4 per cent, follow next.

Interestingly, diversified equity funds (not tax planners, which too are diversified in nature) have ended the week with an uninspiring 2.59 per cent.

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