Markets
BSE See NSE See 39,103.45
142.66 (0.37%)
collapse Related Readings collapse

Templeton India Equity Income Fund - Management Makes A Difference

| 2/14/2011 2:51 PM Monday

It has been the red flag flying high for the equity markets almost from the start of the year 2011. On a YTD basis the Sensex has fallen by over 12.19 per cent. There is no respite for anxious investors on D-Street as the bears currently have a firm grip of the markets. The FIIs are heavily flushing out their investments thanks to the attractive valuations of the developed economies as compared to emerging markets like India. Rising inflation and its severe (direct or indirect) implications on the interest rates and bottomlines of India Inc are further hurting the market sentiments. The rising price of crude oil, close to the USD 100 per barrel mark, is also taking its toll on the health of the market.

Meanwhile, the global political tension building over the Egypt protests and the domestic scams and the upcoming budget have all left the investors (local as well as global) in a jittery position. Thus, in such a situation one should look out for investing in funds that have managed to limit investors’ losses in testing times. And this fund has managed to do that which is evident from the fact that when the NAV of the diversified multi-cap category on a whole has fallen by 11.06 per cent, this fund’s NAV has gone down by 6.01 per cent. In fact, the fund has declined the least amongst the diversified funds ‘multi-cap’ category and has been the best performer in this period.

Launched in 2006, the fund had a prudent start and post-2007, it picked up well and has been consistently performing well since then. In fact, it stood in the top five funds in terms of its performance during CY09 and also managed to beat category returns in CY08 and CY10. Such a performance in both bullish as well as bearish periods proves the mettle of this fund. It is a multi-cap fund that has managed its risk-return well, considering that the fund is the fourth-best in terms of its Sharpe Ratio that stands at 0.35. This is regardless of the fact that it has a very compact portfolio, being almost fully invested and nearly 50 per cent of its assets in small and mid-cap stocks.

The fund has a concentrated portfolio and out of its selection of 22 stocks the top ten stocks and the top three sectors account for over 50 per cent each of its net assets. Despite such aggressive portfolio attributes, the fund manager seems to be trying to astutely balance the portfolio risk, considering that the fund’s PE and P/ BV stood slightly below that of the Sensex in the trailing 12-month period. Such a performance and portfolio management come from a man with over 40 years of experience in global and emerging market fund management, J Mark Mobius, who co-manages this fund. Considering all these factors, moderate risk investors can take an incremental exposure to this fund through SIP.

 

Find More Articles on: Personal Finance, Mutual Funds, DSIJ Magazine, Fund of the Fortnight

news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.