SKP Securities has done an interesting analysis of 18 open-ended diversified equity funds from 14 fund families, in respect of their performances during the markets recovery phase. The bottom has been taken as the Net Asset Value on May 22 and this has been compared with the NAVs on July 19.

The Tata fund with a recovery rate at 19.96 per cent has been described as "the top performer during the current recovery,". It is overweighted in technology, media, telecom (TMT) stocks to the extent of more than 55 per cent of its portfolio. It however has the highest holding in ITC at 9.83 per cent. ING Growth fund with a recovery rate of 19.15 per cent, appears to have pinned its fortunes entirely on the TMT stocks where the holding is to the extent of more than 81 per cent, while Infosys and Wipro are its top two scrips. The investment style has been described as "risky style - paying off".

The Zurich fund, the third top performer, in total contrast to the other two schemes has the least exposure to TMT stocks. The recovery rate of the scheme from the bottom is 18.82 per cent. The highest exposure is in FMCG sector (38 per cent), while it has invested upto 99 per cent of its funds, making it "the fully invested fund."

Other `fit' performers are Alliance Equity Fund (14.09 per cent), Prudential ICICI Growth Plan (13.03 per cent), IL&FS Growth & Value Fund (13.02 per cent), Sundaram Growth Fund (12.58 per cent), Kothari Pioneer Bluechip Fund (12 per cent) among ohers. All of these funds incidentally have their maximum weightage in TMT stocks. Kothari Pioneer's Prima Plus with a recovery rate at 5.33 per cent has lagged the rest of the schemes but according to SKP "could bounce back with a vengeance" a it is a well diversified fund with a good track record. The performance of the funds in terms of their recovery suggest that the success of the schemes depends not merely on the sectoral composition of the portfolio but also on the scrips.

Even with same scrips the fund manager who can churn the portfolio maximum and can pre-empt the market movements by timely transactions would appear to have the best success rate.