Equity MFs cheer investors with positive returns

Updated: Jan 5 2006, 06:04am hrs
Riding on the back of robust equity markets, the Mutual Fund (MF) Asset Management Companies (AMCs) cheered investors in last one year with equity growth schemes of all the 25 MFs showing positive returns. This is a clear reflection of the equity markets as the 30-share Sensex of the Bombay Stock Exchange (BSE) gained 43% (up 2,860.17 points) to 9539.37 on January 3, 2006 from the level of 6,679.20 on January 3, 2005.

The net asset value (NAV) of equity growth funds of top five MFs as on January 3, 2006 are HDFC Mutual Fund (Rs 71.43), Principal Mutual Fund (Rs 40.44), Birla Sun Life Mutual Fund (Rs 38.73), HSBC Mutual Fund (Rs 36.27) and Escorts Mutual Fund (Rs 32.32). Among them, the highest rise in the average NAV was seen in the case of Escorts Mutual Fund schemes.

Nilesh Shah, CIO, Prudential ICICI Mutual Fund said The market have moved up based on liquidity flows. Inflows from FIIs have remained strong and they have bought aggressively in India which has imparted robustness to the benchmark indices. The market outlook invariably depends upon the future flows. If inflows keeps on coming even in 2006, then market will continue to move ahead.

Equity growth funds of Escorts Mutual Fund leads the pack with the highest positive return of 103.56% during January 3 ,2006 and January 3, 2005. The average net asset value (NAV) of two equity fund schemes increased from Rs 15.88 to Rs 32.32.

Among the two equity fund schemes ,the highest increase in NAV was registered in the case of Escorts Growth Plan-Growth Option. The funds NAV increased from Rs 12.45 to Rs 42.63. The fund has 92.55% in equity and 7.45% in money market as on November 30, 2005. Prudential ICICI Mutual Fund house comes next with a positive return of 61.77% as its average NAV increased from Rs 13.76 to Rs 22.26. Among the three Prudential ICICI Mutual Fund schemes, highest rise in NAV was seen in the case of Prudential ICICI FMCG Plan-Growth Option. The NAV of this fund increased from Rs 16.91 to Rs 32.93 during the period.

The average NAV of two equity growth fund schemes of HDFC Mutual Fund increased from Rs 45.35 to Rs 71.43, UTI Mutual Fund has shown a positive return in its three equity growth fund schemes NAV increased from Rs 20.40 on January 3, 2005 to Rs 28.73 on January 3, 2006 registering a positive return of 40.81%.

Among the three equity growth fund schemes of UTI MF, the scheme that leads the pack is UTI-Dynamic Equity Fund-Growth scheme.