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Templeton Back on Top

Franklin Templeton MF has maximum number of five star funds as per the revised list of Value Research Top-rated Funds released for February. Seven funds gain entry into the elite group, six go out

February 2005 was an action-packed month for mutual funds as far as changes in Value Research ratings are concerned. As many as six funds lost Five Star rating, while seven funds made an entry into the elite club, thus pushing the total number of funds in the category from 30 in January to 31 in February 2005.


Fund Families: How they Stack Up
AMC Name  *  **  ***  ****  *****
Franklin Templeton 1 4 8 8 5
HDFC 3 5 10 6 3
Reliance Capital  3 1 2 3
Alliance Capital 1 2 5 2 2
Birla Sunlife 3 1 9 2 2
DSP ML - - 5 2 2
Kotak Mahindra - 2 3 4 2
Sahara 1 2 - - 2
Taurus 1 1 1 1 2
BoB 1 - 3 1 1
Cholamandalam - 2 3 2 1
Escorts - - 4 1 1
LIC 1 4 4 1 1
Prudential ICICI 1 3 8 3 1
SBI 5 8 2 1 1
Tata 2 4 8 3 1
UTI Mutual Fund 2 9 16 5 1
Benchmark - - 1 - -
Canbank 1 3 1 2 -
Deutsche 1 - - 2 -
GIC 1 - 2 2 -
HSBC 1 1 - 1 -
ING Vysya 1 3 - 3 -
J M 1 2 2 5 -
Principal - 6 6 6 -
Standard Chartered 2 3 4 - -
Sundaram - 1 4 4 -
Data as on February 28, 2005


The new Five Star funds include Alliance Basic Industries, DSPML Floating Rate, Kotak Balance, Reliance Short Term, Templeton India CAP-Gift, Templeton India TMA, and UTI MEP '98. Alliance Cash Manager, Alliance Short Term, Birla Floating Rate LT, HDFC Equity, UTI Balanced and UTI MEP '99 lost their Five Star rating.

Franklin Templeton tops the list with as many as five of its funds securing Five Star in February 2005. The fund house also has maximum number of five and four star-rated funds at 13. HDFC Mutual Fund has nine such funds.

UTI Mutual Fund posted impressive gains as far as the number of funds in the four and five star categories is concerned--the AMC now has 10 such funds as against six in January 2005.

Alliance Basic Industries managed to regain its five star rating after a period of seven months. Kotak Balance has been moving up the ratings ladder steadily. The fund has been rated Five Star for the first time. Reliance Short Term regained its coveted Five Star rating primarily on account of impressive returns score vis-à-vis its peers.

Alliance Cash Manager and Alliance Short Term dropped down to the four star and three star categories, respectively, after holding on to the top category for three months. HDFC Equity dropped out of the top category for the first time in the past 18 months. Since January 2000, this has only been the ninth time that the fund had to settle with anything less than the top rating. Never in its rating life has the fund fallen below Four Star.


Five Star Funds
Equity: Diversified  Ret 3M  Ret 1 YR  Ret Since Launch
Alliance Basic Industries 8.53 28.77 29.27
Franklin India Prima 20.43 62.31 24.43
Magnum Contra 23.27 81.38 27.85
Reliance Growth 21.14 60.11 30.25
Reliance Vision 18.99 36.05 26.17
Tata Growth 15.25 45.76 7.10
Equity: Tax Planning   
Birla Taxplan '98 13.44 45.07 39.89
HDFC Long Term Advantage  10.21 53.62 45.63
HDFC Taxsaver 20.09 68.77 41.44
UTI MEP '98 11.49 34.59 20.49
Debt: Floating Rate   
DSPML Floating Rate 1.31 5.11 5.07
BoB Income 0.86 5.26 5.48
Escorts Income 1.42 4.64 11.36
Libra Bond 10.14 11.15 8.59
Prudential ICICI Income LT 5.20 10.75 11.04
Debt: Short-term   
Reliance Short-term 1.73 5.59 6.28
Sahara Short-term 1.14 4.65 6.28
Debt: Ultra Short-term   
LICMF Liquid 1.27 4.95 6.01
Sahara Liquid 1.27 4.82 5.77
Templeton India TMA 1.19 4.73 7.60
Debt: Ultra Short-term Institutional   
Alliance Cash Manager Inst 1.29 4.87 5.07
Gilt: Medium & Long-term   
Chola Gilt Investment 0.53 1.57 12.64
Libra Gilt -0.73 5.67 7.73
Templeton IGSF Long-term 3.49 3.01 13.41
Gilt: Short-term   
Birla Gilt Plus Liquid 1.79 4.97 9.38
Kotak Gilt Saving 1.60 5.08 8.26
Hybrid: Debt-oriented   
Templeton India CAP-Gift 1.74 6.58 11.42
Templeton India Pension 5.79 15.59 15.97
Hybrid: Equity-oriented   
HDFC Prudence 12.20 32.83 20.65
Kotak Balance 16.57 38.97 17.90
Hybrid: Monthly Income   
DSPML Savings Plus Moderate 2.70 7.96 12.12
Return as on 28/02/2005