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Canpremium: Worth a look

Canpremium, one of few equity flavoured funds to keep its neck above water dished its 6th lavish dividend

Canpremium: During the week, Canpremium a conservative balanced fund, with larger allocation to debt declared an interim dividend of 10 per cent (Re 1 per unit). The record date for the same has been set at December 11, 2001.

This is the sixth dividend from the fund since its start in February 1998, a consistent dividend history from a balanced fund: 5% in Mar '01, 10% in Oct. '00, 9% in Jan '00, 6% in Jul '99, 6.5% in Nov '98 and now the 10% dividend. In all the fund has delivered a total return of 19.26X% since its launch.

The fund is up 34.11 per cent on year-to-date basis, as on November 20, 2001. The fund invests upto 60 per cent in fixed income securities and rest in equities. The fund is perhaps the only open-end balanced fund with a dominant debt allocation. The fund has largely maintained 70:30 allocation to debt and equity. Its conservative stance has helped the fund provide returns with great stability against most other balanced funds. Of the sixteen quarters in the funds life, Canpremium has posted negative returns only in two quarters - Q1 2000 and Q3 2001.

Besides a conservative equity allocation, the fund has also maintained a well-diversified equity portfolio without assuming any big sector or stocks bet, adding to the funds stability. In these tough times for equity, the appeal of Canpremium is enhanced substantially for its ability to provide high returns with reasonable stability, though surely not as that of a fixed income fund.

Pioneer ITI Gilt Fund Launch: Pioneer ITI Mutual Fund is launching its set of gilt funds. The fund will open for subscription from November 26, 2001. The fund aims to provide steady returns by investing at least 70 per cent of the assets in government securities and the balance in the money market instruments. The fund is structured in three separate plans -- Liquid Plan, Investment Plan and Specific Maturity Plan.

Liquid Plan suited for short-term investments. This plan will maintain an average maturity of less than 3 years. Investment Plan, suitable for long-term investments and will carry a portfolio of longer maturity of over three years. The Specific Maturity Plan comprises of three sub-plans depending on the maturity periods - Short Term (upto 6 months), Medium Term (upto 13 months) and Long Term (upto 25 months).

All the three plans are come with option of dividend and growth plan with a minimum investment of Rs 25,000 for the dividend plan and Rs 5000 for the growth plan.

Fund Update: During the week, the market gained 72 points on the Sensex and 48 points on the broad-based National Index. The top gainers were - Pioneer ITI Infotech(11.22%), Alliance New Millenium (10.12%) and Libra Taxshield '96 (9.99%).Only seven funds lost during the week. The top losers being Magnum Pharma (-2.53%), UTI Pharma & Healthcare (-2.32%) and Alliance Buy India (-1.80%).

Equity Funds - Key Sector Concentration
    Health Care (%)    Technology (%)  
  Fund Mar2001 Oct2001 Mar2001 Oct2001
  Alliance Equity 10.93 15.87 34.32 21.98
  Birla Advantage 22.65 32.42 12.58 14.73
  Canbonus 13.00 15.22 29.79 16.21
  Canglobal 14.85 11.80 31.37 14.75
  DSPML Equity 4.31 18.56 26.42 14.78
  Franklin India Index 6.16 9.31 14.77 12.63
  IDBI PRINCIPAL Equity 1.00 7.92 22.01 6.70
  IDBI PRINCIPAL Growth 6.39 12.05 17.99 8.74
  IDBI PRINCIPAL Index 6.36 9.48 15.30 12.68
  IL&FS Growth & Value 2.76 14.41 32.72 11.92
  K 30 Unit Scheme 16.12 15.20 18.73 12.20
  Pioneer ITI Bluechip 8.97 11.74 22.46 15.92
  Pioneer ITI Prima 4.36 4.06 12.39 10.31
  Pioneer ITI Prima Plus 9.45 19.87 25.99 13.58
  Sun F&C Value 10.63 9.44 20.95 20.97
  Sundaram Growth 8.03 15.10 15.77 12.89
  Zurich India Cap. Builder 4.73 17.20 3.66 -
  Zurich India Equity 10.74 27.60 18.36 8.30
  Zurich India Top 200 4.73 17.80 2.77 10.00