How the funds get positioned against their peers tells us a lot about their consistent performance, or lack of it. Here we look at rankings over the past 6 weeks
10-Jul-2007 •Research Desk
Data never lies. But besides stating the truth, it can often throw up some remarkable insights. This is what we found when we looked at the weekly ranking of funds over the past 6 weeks.
What's really interesting is that over the long-term, the top performers stayed constant. Reliance Growth (No. 1), Magnum Contra (No. 2) and Magnum Global (No. 3) were the top performers over the 5-year return period.
The Magnum funds carried their winning streak even further. In the 3-year period, Magnum Global has been No. 1 and Magnum Contra No. 2 consistently. But while the 5-year and 3-year performance rankings give them much to boast about, they tend to dip slightly in the 2-year rankings. When it comes to 1-year or less, the slide is rapid.
Sample this. For the week ended June 1, Magnum Global was No. 1 (3-year), No. 3 (5-year), and No. 8 (2-year). But it slides to No. 106 (1-year) and No. 148 (6-month). For the week ended July 6, the slide was less dramatic at No. 33 (1-year) and No. 138 (6-month).
These Magnum funds were all handled by Sandip Sabharwal. When in SBI Mutual Fund, they all shot to prominence under his leadership and are now handled by Sanjay Sinha. Sabharwal has now moved on to J M Mutual Fund. His handling of JM Basic has thrown up some interesting numbers. Being a relatively new fund, it does not have a 3-year and 5-year performance record and started a 2-year performance only from June 22. For the week ended June 1, it bagged the No. 1 slot across the 1-year, 6-month, 3-month, 1-month and 1-week time frame. Since then, its 1-year, 6-month and 3-month performance has put it in the No. 1 and No. 2 slot, only once slipping to No. 3. Its 2-year performance has also been improving every week.
Talking of moving fund managers, Sundaram BNP Paribas Select Midcap was handled by Anoop Bhaskar who has now moved to UTI Mutual Fund. The 3-year performance puts the fund in the tops slots but it drops for the 2-year period and then drastically falls for the 1-year period (a trend similarly observed in the two Magnum funds mentioned above). For instance, take the week ended June 8. It moved from No. 3 (3-year) to No. 11 (2-year) and No. 149 (1-year). Or the week ended July 6 which saw it move from No. 4 (3-year) to No. 10 (2-year) and then to No. 125 (1-year).
Where tech funds are concerned, DSPML Technology.com is the undisputable leader. It has been No. 1 for the 3-month, 6-month, 1-year, 2-year, 3-year and 5-year period over all these six weeks. In the pharma space, Reliance Pharma rules. Out of the five pharma funds, none have been there for a 5-year time frame. While Reliance Pharma has often been relegated to the No. 2 spot in the 3-year time frame, it has been at No. 1 for 2-years, 1-year, 6-months, 3-months and 1-month.
The data looked at is over the 6 weeks ended June 1, 8, 15, 22, 29 and July 6, 2007.