Understanding fund directory

The listing gives you information on the performance of mutual fund schemes based on investment category they belong to and with a corpus (QAAUM: quarterly assets under management) of over Rs 600 crore. For the full list of schemes, visit www.business-standard.com/download/ fm2012.xls. Returns (adjusted for payouts where applicable) and net asset values (NAV) are for the period ended September 28, 2012. Data has been sourced from www.mutualfundsindia.com.

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. Returns for short-term and long-term debt funds are simple annualised for period of less than one year, and compounded annualised for period of more than one year. Category averages are simple mean.

 

The fund ranking is done separately for the various categories and not across categories. Latest corpus (QAAUM) figures are based on those published by asset management companies (AMCs).
 

THE TOP PERFORMERS
EQUITY - DIVERSIFIED	Absolute 1-Yr Chg (%)
Reliance Equity Opportunities Fund	23.97
ICICI Prudential Discovery Fund	23.35
Principal Emerging Bluechip Fund	22.68
Kotak Contra Fund	22.54
SBI Magnum Sector Funds Umbrella – Emerg Buss Fund	22.27
EQUITY - ALL SECTOR
SBI Magnum Sector Funds Umbrella – FMCG	40.53
Reliance Media & Entertainment Fund	31.32
ICICI Prudential FMCG	30.53
SBI Magnum Sector Funds Umbrella – Pharma	29.89
ICICI Prudential Technology Fund	27.06
BALANCED FUNDS
Reliance RSF – Balanced	19.82
Tata Balanced Fund	18.78
Kotak Balance	17.71
ICICI Prudential Balanced	15.67
SBI Magnum Balanced Fund	15.60
DEBT - LONG TERM
Kotak Bond Scheme – Plan A	13.21
SBI Dynamic Bond Fund	12.78
SBI Magnum Income	12.45
Templeton India IBA – Plan A	12.15
IDFC D B F – Plan A	11.90
Source : www.mutualfundsindia.com

The Fund Managers of the Year have been selected based on risk-adjusted returns, which is the return per unit of risk for the schemes for the 12 months ended September 28, 2012. For equity funds, only open-ended diversified funds, whether large-cap or mid-cap, were considered. Sector or theme funds were not eligible. (Click here for DIRECTORY)

The daily returns on the NAV and a risk-free return of 7 per cent were used for the purpose of calculation of the Sharpe ratio. For the debt funds, the ultra short-term and liquid schemes were not eligible for the ranking, whereas the risk-free return was taken as 8.5162% (91 days Treasury bill average for last one year). Moreover, the fund manager should have managed the scheme for at least the one year to be eligible for the award.

Also, for the further eligibility, the sum of QAAUM is considered and 10% of the bottom equity funds and 25% of the bottom debt funds are moved out. To ensure that no fund manager emerged as a winner merely based on the performance of a particular scheme managed by him/her, the concept of ‘Adjusted Sharpe Ratio’ was adopted. Here, a composite score was ascertained for each fund manager comprising the weighted average of the Sharpe ratio achieved by each scheme managed by him/her. The average one year corpus of each scheme and the sum of QAAUM was used as weights to arrive at his/her score.