Equity schemes ride on bull run, debt schemes volatile: CRISIL~RRR
13 February 2006
CRISIL FundServices, in its monthly Risk Adjusted Return Ranking (CRISIL~RRR) of the performance of mutual fund schemes, has covered ten mutual fund investment options and has ranked 228 schemes for the one-year period ended January 2006. The ranking covers 58 per cent of mutual funds industry assets under management (AUM). The CRISIL~RRR measures performance of the schemes not only on the returns given by the schemes over the period of analysis but also the risk they took to get those returns.
The stock market continued its upward climb in January 2006 with the S&P CNX Nifty scaling an all time high of 3001 points during the month. FIIs were active and invested over $800 million during the month. The benchmark S&P CNX Nifty delivered returns of 5.62 per cent during January 2006 while the CNX Midcap Index delivered 6.67 per cent.
The money market remained tight and call money rates touched 8 per cent as a result of the hike in reverse repo rates in the RBI's Monetary Policy Review. The month also saw another rate hike from the stable of the US Federal Reserve wherein the federal funds rate was increased by 25 basis points to 4.50 per cent. The rate hike was the 14th in a span of two years.
The equity funds category benchmark, the CRISIL Fund~eX, generated a return of 52.82 per cent for the year-ended January 2006.
- SBI Magnum Global Fund continued to top the ranking at CRISIL~RRR 1.
- Sundaram Select Midcap – Growth remained at CRISIL~RRR 2
- SBI Magnum Multiplier Plus Scheme 1993 – Dividend moved up by three notches to be at CRISIL~RRR 3.
In the software sector category:
- Birla India Opportunities Fund - Plan B – Growth continued at CRISIL~RRR 1
- SBI Magnum Sector Umbrell – Infotech Fund continued at and CRISIL~RRR 2
- Prudential ICICI Technology Fund – Growth moved up two notches to CRISIL~RRR 3.
