Diversified Equity funds: yesterday's winners vanquish today

It has been a year of stark contrast where yesterday's winners are today's vanquished. From triple-digit returns in 1999 to notable losses in 2000, last year's best diversified equity funds have become this year's mediocre performers. In a tough year for technology stocks, many of these mostly aggressive funds have seen their favorite stocks struggle. Unlike last year when initial public offerings were listing at a huge premium to their offer price, a weak market for IPOs has added to the woes. The combination has pounded fund returns to the ground. Take for instance, the top diversified equity fund of 1999, Magnum Taxgain from SBI Mutual Fund. The fund's top holding in SSI has shed over 26% since the beginning of the year while another top rung stock of Aftek Infosys has lost nearly 60%. The two stocks, on an average, have accounted for 22% of the fund's assets this year. But for a sizeable exposure to HFCL (up 84% year-to-date), Magnum Taxgain would have been washed away since most holdings have lost value. The fund has lost 47.6% for the year to date through November 28, a contrast to the eye-popping 315% return it posted in 1999. Or take for instance, the chart buster equity funds from Birla Sunlife AMC, Birla Advant