Category: Mutual Funds Review

India’s leading Asset Management Companies [HDFC, ICICI and Reliance] have come together to oppose the Entry Load Waiver that SEBI and AMFI suggested. SEBI said that it was unnecessary to charge Entry Load to informed customers who can select funds and decide on their own.

This whole thing looks like a Big CARTEL being formed by Asset Management Companies and Mutual Fund Distributors. For a minute, lets forget New Fund Offerings, where there is a bigger scam. May I know the reason behind imposing a 2.25% entry load to SIP investors ? God dam AMCs we have been SIP investors since 2003. Check this e-mail sent to readers of our group.

Requesting Attention of Our Readers:
After a careful investigation, we decided to file a petition against AMC and Mutual Fund Distributor nexus prevailing in the Indian Capital Market. You are kindly requested to sign this petition and we will forward the same to SEBI, AMFI, Finance Minsitry and also AMCs.

Got a suggestion or comment ? send it to feedback @ dalalstreet.biz

Here is a real quick analysis on how our star fund manager realigned the folios of various funds.

In HDFC Equity fund, their were no major shuffles except that exposure to IT stocks was reduced. Punj Lloyd probably gave him a SELL warning when it crossed Rs 290 levels and hence reduced holdings in it. He also sold Bharti Airtel, probably he thinks in line with Kotak Analyst who say that QoQ growth has peaked and with Spectrum crunch and no 3G services in-sight, bottomlines will be under pressure. Taken Fresh positions in ITC.

In HDFC Top-200 fund, their were quite a few new additions to the folio, Bajaj Auto, NTPC and Asian Paints. One can BUY Asian Paints and Bajaj Auto on market corrections. NTPC is a fantastic PSU but we don’t recommend it is a long term play. IT Stocks Position was reduced. Exits made in Ranbaxy, Hindustan Unilever and Colgate Palmolive.

Under HDFC Prudence fund, we saw fresh positions in Page Industries and Grindwell Norton. Substantial quantity of Shanti Gears were purchased. Reduced exposure to IT stocks.

Our Mutual Fund Analyst researched some top mutual funds and has observed that the cash levels in portfolio have increased compared a quarter ago.

Reliance Growth fund and Reliance Equity Fund both managed by Sr. Fund Manager Sunil Singhania [On your Left] is holding is holding 9.81% and 15.11% of portfolio in Cash / Call Money. Reliance Vision fund is having 9.42% in Cash / Money Market instruments. Franklin India Flexicap fund once again managed by Sr. Fund Manager K N Siva Subramainan is also holding 9.42% of folio in Cash / Call Money. All these funds are large funds with portfilio value ranging between Rs 4,000 to Rs 3,200 crore.

Our star fund manager Prashant Jain of HDFC Equity and Top-200 has taken a different bet. Holds very low cash in HDFC Equity fund – 2.9% while in HDFC Top-200 fund it is at 9.1%. The portfolio of HDFC Equity Fund is mostly Large Cap liquid stocks and hence we guess he feels it un-necessary to hold cash.

What is common in all the above funds is, where Managers take significant exposure to Midcap stocks, they prefer to hold around 10% cash in their funds. However, if volatility continues then they are expected to shift to Large Cap otherwise they are under severe pressure of quarterly performance with their peers.

Comments and Suggestions if any maybe sent to “feedback AT DalalStreet.Biz”

Here is our Quarterly update on HDFC Mutual Fund for our SIP and Value investors. The markets have been buoyant and so have been your investments in the mutual funds. Our favorite fund manager, Prashant Jain was on Wizards of Dalal Street. If you have missed to watch his show, you can watch it online here.

SIP Update as on June-30-2007.

• HDFC Equity Funds – Growth
• HDFC Top 200 Fund – Growth
• HDFC Tax Saver Fund – Growth
• HDFC Long Term Advantage Fund – Growth

Please continue to invest fixed sum in these funds every month. You can use this SIP calculator to find about your investment goals.

Suggestions and Comments maybe sent to – “feedback @ DalalStreet.Biz”

Here is a quick snapshot of how the portfolio of our recommended funds changed during June-2007.

HDFC Equity Fund:
The fund manager reduced exposure to ONGC, Exide Industries and Infosys Technologies. He bought large quantity of of SBI. Significantly added L&T, United Phosphorous and HT Media. Also added Glaxo Smithkline Consumer Healthcare, Dishman Pharma and Pidlite Industries. Complete Exit from ITC and Century Textiles and Industries.

HDFC Top-200 Fund:
The fund manager bought Infosys Technologies and ITC in small lots. Drastically reduced positions in ONGC and Wipro. Also sold Bharti Airtel, Reliance Petroleum, TCS, Maruti and GAIL.

HDFC Prudence Fund:
Significantly added SBI and Ahmednagar Forgings [Amtek Auto group company]. Also added Nestle, Shanti Gears and Divis Labs. Sold small chunks of Punj Lloyd and Eveready Industries.
Complete exit from Century Textiles and Industries and Ceat Tyres.

So in all, SBI is bought across the board. ONGC and Century are sold heavily. Check back, will update on the SIP performance for the quarter ended June-2007.

Retail Value Investors should avoid the NFO of Reliance Equity Advantage Fund. In quest to become the number one fund house in India and encashing on the the ignorance of Indian retail investors, Reliance Mutual Fund is launching a fund every month which is totally unnecessary.

Reliance Equity Advantage Fund is a Index Fund which will invest 80% in Nifty stocks and the balance 20% in other equities which the fund manager deems fit. Avoid the NFO.

Retail value investors should stick to value investing by means of Systematic Investment Plan.