Canara Robeco Mutual Fund unveils Capital Protection Oriented Fund–Series 1–36 Months

Canara Robeco new issue opens on 11th February and closes on 24th February

Canara Robeco Mutual Fund has launched Canara Capital Protection Oriented Fund- Series 1-36 Months (Plan A), a close-ended income scheme.

The investment objective of the scheme is to seek capital protection by investing in high quality fixed income securities maturing on or before the maturity of the scheme and seeking capital appreciation by investing in equity and equity related instruments.

The new issue opens on 11th February and closes on 24th February. The minimum investment amount is Rs5,000.

CRISIL MIP Blended Fund Index is the benchmark index.  


HDFC Mutual Fund floats Debt Fund for Cancer Cure

HDFC Mutual Fund proposes to commemorate its 10th anniversary by launching HDFC Debt Fund for Cancer Cure in association with the Indian Cancer Society (ICS).

HDFC Debt Fund for Cancer Cure is a three-year close-ended capital protection oriented income scheme. An investor will have an option of donating the dividends earned, on his investments, either partly or wholly, to ICS.

The new issue will be launched on 18th February and will close on 4th March. HDFC Mutual Fund, as a part of its contribution towards this social objective, would not levy any investment and advisory fee to manage the Fund and would also bear the distribution and marketing costs.

The donation of dividend to ICS is eligible for tax deduction under Section 80G of Indian Income-tax Act, 1961. 


Equity funds do well under bear attack of January

Among the best-performing fund houses was Reliance, JM continues to be the laggard in the pack

In January, the Indian markets came under a bear attack, when the Sensex and the S&P CNX Nifty fell by 11% each.

However, equity mutual funds on the whole did better than their respective benchmarks.

Out of the 228 equity growth schemes, 118 have outperformed; 82 schemes have underperformed and 26 schemes have just about managed to equal their benchmark returns.

The top-performing three schemes for January 2011 were-JM Core 11, Reliance Natural Resources and Reliance Small Cap. JM Core 11 fetched a return of -4%, while its benchmark was down 11%. Reliance Natural Resources and Reliance Small Cap fetched returns of -5% and -8% ((benchmark return of -10% and -12% respectively).

Among the top performers of January 2011 were nine funds from Reliance Mutual Fund-Equity Advantage, Equity, Reliance Growth, Natural Resources, NRI Equity, Quant Plus, RSF, Small Cap and Reliance Vision. They suffered an average loss of -8% and have beaten their benchmarks by 3%, on an average.  

If Reliance was the best fund house, JM's funds continued to destroy investors' wealth, barring one fund, the JM Core 11, which was a top performer for January, in our current analysis. This is not a surprise.

As we pointed out in our article in Moneylife (1 July 2010), JM is indeed the worst fund house by any parameter.

Among the 20 worst-performing schemes over past one month, JM has as many as ten. These include Agri & Infra (-13%), Basic (-15%), Contra (-14%), Emerging Leaders (-16%), Equity (-12%), Hi-Fi (-13%), Large Cap (-11%), Mid Cap (12%), Multi Strategy (-13%), Small & Mid-Cap (-13%).

The others in the bottom 20 were ICICI Prudential Emerging STAR (-13%), Taurus Discovery (-12%), Birla Sun Life India Reforms (-12%), SBI Magnum Multiplier Plus 93 (-12%), Birla Sun Life Mid Cap (-12%), Kotak Midcap (-13%), Principal PNB Long Term Equity (-13%), ICICI Prudential Equity Opportunities (-12%), Sahara Star Value (-13%), HSBC Midcap (-15%), Sundaram Rural India (-14%), HSBC Progressive Themes (-14%), SBI Magnum Sector Umbrella-Emerging Businesses (-14%).

Out of the various schemes in this category from the Tata stable, the only underperformer of the lot was Tata Equity Opportunities Fund (-12% underperformance with respect to its benchmark).


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