| Understanding Fund Directory | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Unlike in the last few years, we have listed mutual fund schemes based on the investment category they belong to and not AMC-wise. Barring fixed maturity plans, all mutual fund schemes in force have been listed. All returns are for the period ended June 30, 2004. Net asset value figures, however, are as on July 31, 2004. All the data have been sourced from www.mutualfundsindia.com. Only growth plans have been listed. Returns are adjusted for pay-outs, wherever applicable. For equity funds, returns have been calculated from point-to-point. Similarly, for balanced funds, speciality funds and fund of fund schemes, the returns have been calculated point to point. For debt funds, including monthly income plans, returns have been calculated on a rolling basis. Equity fund returns for periods below one year have been calculated in absolute terms, while for periods above one year they have been computed on a compounded annualised basis. Ditto for balanced schemes. For long-term debt and gilt schemes, returns for periods below one year have been calculated on a simple annualised basis and on a compounded annualised basis for periods of more than one year. All short-term fund returns are computed on a simple annualised basis. The fund ranking is done separately for the various categories and not across categories. Expense ratios and latest corpus figures are based on latest published figures by AMCs. Risk-free returns for computing the Sharpe ratio have been assumed at 5 per cent. Category average figures are the simple mean. To arrive at the Fund Manager of the Year, we have worked on the well-accepted premise that fund management is not all about returns, but also risks. What we have done is to calculate the risk-weighted returns by estimating the return per unit of risk for the schemes for the last one year period. This time we decided to have two awards, one each for equity and debt. In the case of equity funds, only diversified equity funds were considered. For debt, only medium and long-term debt funds were considered for the award. Speciality funds were excluded. Also, short-term funds were excluded because there is a wafer thin distinction between the performance of various schemes. In such products, services standard matter as much as performance.
The cut-off corpus (average assets managed during the year) for a fund to be considered for the award was pegged at Rs 100 crore. Reliance Growth Fund and Standard Chartered Super Saver Income Fund (medium term plan) were rated the best in their respective categories.
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