The Sensex gave a return of around 56 per cent during this period. After several years of just middling returns, the funds have finally performed. Most of the open-end equity funds outperformed the market handsomely during the first three-quarters of the current calendar year. Atleast fifteen of the forty-two funds ranked, have been able to knock out double-digit returns giving more than 100 percent returns.

Even the worst among them at the bottom of the charts gave reasonable returns of around 30-40 per cent. The returns have been largely fuelled by the current market rally. Maybe you made a lot of money, but perhaps you could have made more in another fund. Or perhaps you could have had a fund that earned as much without taking as much risk.

The investors continue to throw money at funds. Fund returns are impressive, and the money is pouring in at a torrid pace. The assets under management under mutual funds has grown manifold with the private sectors leading the pack, delivering handsome returns and setting good service standards. Among the top ten performers, there are three speciality - equity funds: Kothari Pioneer Infotech, Tata Core, Canexpo, two tax-saving funds - Alliance Capital Tax Relief '96, Tata Tax Saving Fund and the rest are pure equity schemes.

All these top five funds have consolidated portfolios and have majority of investments in infotech sector. Maybe the world will increasingly be shopping, socialising and perhaps living-online. I cann't visualise the long-term effect of infotech resources on our lives. But for now, they are surely making an impact on our investment returns. Some of the biggest gainers owe their lofty gains to their bet on this sector.

Kothari Pioneer Infotech Fund, the biggest gainer was the first infotech fund, the hottest sector in the market today. It has cashed on the current infotech boom with a very timely entry. The NAV of the fund has more than tripled since its launch. The assets under managed have also soared to more than ten times. Despite its volatililty since its launch the fund has been consistently moving up.

Tata Tax Saving fund has been another blockbuster - up 151 per cent calendar year-to-date and ranked #2 among forty-two open-end equity funds. There have been few tax-saving funds who have delivered such returns. The fund has around Rs 27 crore of assets under management.

It has around thirty seven per cent of its assets in the infotech stocks, thirty per cent in Pharma & Agrochem and the rest in media and FMCG stocks. The fund has a concentrated portfolio with just around twenty stocks.

Alliance Equity is ranked number three and it has given a whopping return of 144 per cent during 1999. It is a 117 crore fund with a consolidated portfolio of just around forty stocks. Alliance Equity also has major holdings in the information technology sector. The top five stocks namely Zee Telefilms, Digital Equipment, Infosys Technologies, Punjab Tractors, Satyam Computer Services, account for nearly thirty per cent of the portfolio.

Birla Advantage, the aggressive diversified equity fund is up 138 per cent year to date and ranked #4. The fund is remarkable for it consistent performance and undistracted focus on growth stocks. The fund with a four and a half-year track record, the annualised total return of 37.09 per cent, looks very impressive. The fund's gains also been very consistent, barring few quarters.

The fund has assumed aggressive positions in few stocks in Infotech, Pharma, and FMCG sectors. The top 10 holdings in the portfolio account for almost 65 per cent of the net assets. The fund portfolio has not changed much though the relative exposure to individual stocks have changed with rising valuation of ome stocks. The fund's performance matches the returns of some exotic sector fund over brief time period. The fund has proved extremely rewarding with consistency.

Alliance Capital Tax Relief '96 (ACTR) is another tax-saving fund with exceptional returns. ACTR a closed-end tax planning equity fund was converted into an open-end fund on July 1, 1999. Launched in December '95 it is a relatively small fund with initial mobilisation of Rs 1.4 crore. The fund has built solid performance numbers now. ACTR is the top performing equity fund taking into account all open-end and closed-end equity and tax planning planing funds.

Being a small Rs 4.04 crore fund, the fund portfolio is highly concentrated and spread over only 10 stocks, with key positions in Indian Shaving Products, Zee Telefilms, Hindustan Lever, Infosys Technologies and Software Solution Integrated. Year to date, the fund is up 135 per cent and has gained very sharply in month of September with significant gains in all the stocks it holds. In absolute terms, the fund is up over 500 per cent in less than four years since its launch.

Value Research