Financial Daily from THE HINDU group of publications
Sunday, Jun 23, 2002

Investment World
Features
Stocks
Port Info
Archives

Group Sites

Investment World - Mutual Funds
Markets - Mutual Funds


Pioneer ITI Prima Fund: Hold

Suresh Krishnamurthy

FRESH investments need not be considered in Pioneer ITI Prima Fund. The fund, with its focus on mid-cap stocks, has turned in a stellar performance in the recent months. But the sustained outperformance of mid-cap stocks over large-cap stocks is unlikely. In the event of a further sharp rise in performance, investors also need to be prepared for paring their exposures to the fund.

Investors who do not have any exposures to the fund could consider investments of smaller proportions, as such a strategy would provide exposure to mid-cap stocks. However, for the investment to deliver returns commensurate with the risk involved, the required time horizon may be longer.

Suitability: The volatility in the NAV has been much higher than most indices. It has been higher than even the CNX Midcap 200 indices — consisting of stocks with market cap of Rs 150-1,500 crore. This suggests that the risk involved in investing in the fund is much higher than most peer funds. Most peer funds invest a large portion of their funds in large capitalisation stocks.

Performance: Since June 1999 (from which period the values for CNX Midcap 200 are available), Pioneer ITI Prima has recorded a growth of 77 per cent in NAV in absolute terms. During the same period, CNX Midcap 200 gained only 10 per cent. BSE 200, a broad-based index, registered losses of 7 per cent in absolute terms.

The fund has delivered superior performance compared to market indices when reckoned from the peak of the bull market (February 2000 to now), at the trough of the bear market (June 1999 to September 2001) and from the trough of a bear market (From September 2001 to now).

However, the performance between February 2000 and September 2001 — peak of a bull market to the trough of a bear market — suggests that when the indices are at a high, investors would need to curtail their investments in the fund.

Portfolio allocation: The fund is more or less fully invested, with a cash position less than 4 per cent of the net assets. It is also considerably more diversified than a typical equity fund.

Send this article to Friends by E-Mail

Stories in this Section
Precot Mills: Accept


Wartsila: Accept
Hindustan Zinc: Accept
Cement: Volume push, a concrete move
Consolidation -- Gradual cementing, but...
The bugbear of capacity creation
Cement stocks: Not so ready-mix
Pioneer ITI Prima Fund: Hold
Birla Equity Plan: Pare exposures
LIC MF Gilt Fund: Invest
Pioneer ITI FMCG: Pare exposures
Short-term is back in favour
Constructive developments
Clariant: Good medium-term prospect
Colgate Palmolive: Pare exposure
Aptech-Hexaware: On course?
Mahindra & Mahindra: Will Scorpio help switch gears?
Apollo Tyres: Book profit
Berger Paints: Buy
Travel insurance -- `Packed' with secure features
Weak trend in Infosys, Satyam
Ranbaxy closes on cheerful note
Short-term uptrend in Tata Power
FIIs in selling spree
Nasdaq: Weak trend prevails
Signs of improvement
Options help guide
Futures guide
Investing in your employer is risky
Venky's India: Good egg
Housing loans: Different angles to tax breaks
Is the glitter for real?
Catch-22 for Indian investors
Let oil cos be Indian
SEBI, over-ruled!
The lure of large IPOs
Costs: Funds' pressure on SEBI
Ballarpur Industries — Risky in letter and spirit?
It adds up!


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line