115 Equity mutual funds outperformed Sensex

Equity mutual funds as a class posted an average return of 25.75%, under performing the Sensex return of 26.65%, over the one-year period ended 1 February 2008. Of the 255 equity schemes, 124 exceeded the category average of 25.75% in the one-year period, while 115 outperformed the Sensex that is posted 26.65%. The topper was Reliance Diversified Power Sector (G) with 92.77% return. In the equity category, the diversified categories and tax planning outperformed the Sensex, giving a category average of 27.39% and 27.62%, respectively while Mid cap under performed the Sensex by recording 25.08% category average during the same time period. In the equity diversified category, out of the 138 schemes, 64 exceeded the category average of 27.39%, while 69 outperformed the Sensex return of 26.65%, over the one-year period ended 1 February 2008. Stan Chart Premier Equity Fund with growth option ranked the first position, with 64.57% return, followed by Reliance Regular Savings Fund - Equity (G) with 62.39% return. DWS Investment Opportunity Fund (G) secures the third position with 57.59% in 1-year period.

In the mid-cap segment, Sahara Midcap Fund (G) the topper, with 40.32% return, exceeding the category average of 25.08%, followed by Birla Midcap Fund (G) with 40.14% return. Out of 24 schemes, only four schemes has outperformed the CNX Midcap index, which has posted 36.64% returns in 1-year period.

ICICI Pru FMCG Fund - (G) was the topper in the FMCG category, with 20.97% return, outperforming the category average of 13.08% and out performing the BSE FMCG index with 15.86% returns.

In the Tax-planning category, of the 33 schemes, 16 outperformed the category average of 27.62%. Taurus Libra Tax shield Scheme, with 58.64% return, stood at the top position.

In the Pharma segment, of the five schemes, only one exceeded the category average which had negative returns of 5.70%. Only Reliance Pharma Fund (G) posted positive returns of 11.65% while remaining four schemes followed it with negative returns. All five schemes underperformed the Sensex return of 26.65%.

Franklin Templeton MF declares dividend

Franklin Templeton Mutual Fund has approved the declaration of tax-free dividend under the Franklin Templeton Franklin India Prima Plus. The record date for dividend is set as 13 February 2008. The AMC plans to distribute 60% of distributable surplus as on record date. The record date for the dividend is 13 February 2008 and any purchases on or before this date will be eligible for the dividend. There will be a one-day book closure for the growth and dividend plans in the respective funds on 14 February 2008 and will reopen for fresh purchases and redemptions on 15 February 2008. Under the dividend reinvestment plan, the dividend declared will be reinvested in the fund at the NAV of 15 February 2008 and unit holders will be allotted additional units for the dividend amount.

Franklin India Prima Plus was launched in September 1994 as an open-end fund and currently manages over Rs.1775 crores of assets for over 220,000 investors. Franklin India Prima Plus, which invests in a diversified portfolio of wealth creating companies that generate a return on capital higher than their cost of capital. The fund has declared ten dividends in the last nine years.

Mutual funds continue selling

Mutual funds (MFs) sold shares worth a net Rs 212.20 crore on Wednesday, 6 February 2008, compared to their selling of Rs 297.50 crore on Tuesday, 5 February 2008. MFs' net outflow of Rs 212.20 crore on 6 February 2008 was a result of gross purchases of Rs 745 crore and gross sales Rs 957.20 crore. The 30-share BSE Sensex declined 523.67 points or 2.81% at 18,139.49 on that day. MFs were net buyers of shares worth Rs 409.30 crore in this month, till 6 February 2008.