A compilation of annualised returns by Value Research shows only four equity diversified mutual fund schemes have given positive returns, With Sensex falling by over 8 per cent during this period it is a surprising growth that these four schemes have managed to perform in a positive way. The growth of these four recorded between 1 per cent and 2.57 per cent.
Mutual Fund
| Scheme,Returns,Sensex Returns |
| Sahara Growth Fund,1.13,-8.14 |
| ICICI Prudential Infrastructure Fund,2.57,-8.14 |
| DSP Black Rock Top 100 Equity Fund,1.01,-8.14 |
| Reliance Regular Savings Equity,1.75,-8.14 |
| Source: Value Research,, |
Those funds which have invested in non-Nifty, illiquid and high FII-ownership stocks have been affected the most, said Mr Sridhar.
While only four of the 137 equity diversified schemes gave positive returns, about 70 per cent of the equity diversified schemes have fared worse than both the Sensex and even their own benchmark indices.
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SEBI has directed all mutual funds to not charge the entry load for applications which are made directly to them. Till now mutual funds were charging around 2.25% for open-ended equity schemes to all investors. So for example, if you were to make an application of Rs. 10,000, you would be charged Rs. 225. This they did by alloting units at 2.25% higher than the day’s NAV. This charge was for meeting the distribution expenses and broker’s commission.
But from today, investors who do not apply via a broker but rather apply directly with the AMC (Asset Management Company) or via the internet, they will not be charged any entry load. So for example, if you wish to apply to Reliance’s Tax Saver scheme, you should fill and submit your application directly at the Reliance Mutual Fund’s office or apply via their website. Please take care that the application form which you use, does not contain any broker’s code mentioned on it. This is good news for investors as they save around Rs. 225 per Rs. 10,000 application (assuming an entry load of 2.25%).
Investors who wish to have the guidance of their brokers while applying can continue to apply via their brokers but they will be charged the 2.25% entry load.
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