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Biggest Loser Kaun?

We know that the markets have suffered badly in the recent times, but it’s the funds that are worse off

The 4th of June was yet another black day for the Indian stock markets. In what has been a series of misfortunes in the past few months, the markets have seen bad days followed by worse ones. 4th June figures right up there in this list. On that day, the Sensex fell by 478 points (2.81 per cent) and the Nifty by 130 points (2.76 per cent). The reasons behind this fall are the rising inflation, talks of a slowdown and the oil price hike.

Since its peak in early January, the Sensex has been down by 29 per cent. However, it is the mutual funds that have suffered much more. 42 equity funds hit their all time low on 4th June.

Some of these funds have slipped by 50 per cent from their peak values of January, earlier this year. The biggest losers have been: Principal Personal Tax Saver losing 61 per cent from its peak NAV of Rs 221.26 it hit on December 31, 2007, Birla Sun Life Tax Relief 96 which lost 50 per cent of its NAV of Rs 167.72 on January 7, JM HI FI which lost 47 per cent of its NAV of Rs 19.10 on January 2, ABN AMRO Tax Advantage Plan which lost 44 per cent of its NAV of Rs 22.70 on January 4, and Banking BeES, the ETF which lost 43 per cent of its NAV at Rs 1070.88 on January 14.

The slip in NAVs of most equity funds launched in the past one year can depress new fund investors. Today, 65 funds have slipped below their face value with the lowest being Kotak Indo World Infrastructure at Rs 6.9 and JM Agri & Infra fund at Rs 6.8. Both these funds were launched in December 2007. The new funds launched this year have had a tough time as well with 22 of the 25 funds slipping below their face value.

On a slightly brighter side, at least 28 equity funds lost less than 10 per cent through the market carnage. The list of these funds is includes Birla Sun Life Pure Value, Franklin Pharma, HSBC Small Cap, ICICI Prudential Focused Equity Inst I, ICICI Prudential Fusion S-III Retail, IDFC Small & Midcap Equity, JM Healthcare Sector, LICMF Systematic Asset Allocation, Lotus India Mid N Small Cap, Reliance ELSS Series I, Reliance Natural Resources, SBI Tax Advantage Series I, Tata SIP Fund II and UTI Pharma & Healthcare.

Well, it’s hard to predict what will happen in the future but it certainly doesn’t look too bright. But as always, what we investors can do is wait and be hopeful. It’s a repeated advise, we know, but it’s all we can give for now.