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NAVs Hit New Peaks

Markets have set net asset values (NAVs) of schemes soaring

The returns from equity schemes of mutual funds have risen and pushed upwards have also been the net asset values (NAVs) of various schemes.

From their 52-week low NAVs, which for a lot of schemes was in March, 2009 when the BSE Sensex also touched its lowest in the bear rally that started in January 2008, the NAVs of most schemes have surged to their 52-week highs on September 18, 2009, at least for 276 of them (out of 363, a good 76.03%).

And fund managers still feel that shares may appreciate further. Based on this surmise, they have reduced their cash-heavy position, which has helped in bringing out such a result.

In March, managers where not sure about the direction of the markets, which led to the build-up of average cash levels in equity schemes, which went up to hover between 15-20 per cent level. Currently, cash levels in equity schemes have dropped down to about 8 per cent of total assets.

Analysts and traders believe that there is ample amount of liquidity left in the markets, as a result of a low interest rate regime and the various government stimulus measures, to drive the markets and the overall economic outlook is on the positive side too.

The run-up on the bourses has mostly taken place in the mid-cap space, with price targets being achieved much earlier than had been anticipated. While valuations have jumped quite high, yet there are still some very good opportunities available for the discerning investors to eye gains from. What that promises, is another round of NAV rises.

However, increasingly, the noise levels about corrections in the market are rising. With market participants having learnt their lessons from the crash in 2008, about the crucial need to pay heed to alarmism too, there may just be a flat-line future awaiting the bourses in the near-term, as lesser amounts of money chases the shares on offer.

NAV Soars High: Top 10 Beneficiaries
  52 Week High  52 Week Low  
Fund  NAV  Date  NAV  Date  Increase %
Taurus Infrastructure 12.71 18-Sep-09 4.66 9-Mar-09 172.75
Principal Emerging Bluechip 24.66 18-Sep-09 9.40 9-Mar-09 162.34
AIG World Gold 12.02 16-Sep-09 4.58 27-Oct-08 162.22
DSPBR World Gold Reg 15.76 16-Sep-09 6.10 24-Oct-08 158.28
ICICI Prudential Discovery Inst I 15.92 16-Sep-09 6.23 27-Oct-08 155.54
Reliance Banking ETF 860.85 17-Sep-09 339.51 9-Mar-09 153.56
ICICI Prudential Discovery 36.27 16-Sep-09 14.36 27-Oct-08 152.58
Banking BeES 843.83 17-Sep-09 335.77 9-Mar-09 151.32
Magnum Midcap 20.72 18-Sep-09 8.26 9-Mar-09 150.85
Sundaram BNP Paribas S.M.I.L.E. Reg 28.73 17-Sep-09 11.48 9-Mar-09 150.19