Dear Reader,
We present the March 2012 issue of the Morningstar FundInvestor.
This Issue Includes
Manage Your Money:
How SIPs Can Smooth Your Returns
This tried-and-true investment method helps investors navigate volatile markets and avoid emotional investment decisions.
Fund Manager’s View:
Birla Sun Life Mutual Fund
Debt fund manager, Prasad Dhonde of Birla Sun Life Mutual Fund talks about interest rates, monetary policy and his outlook for the fixed-income market going forward.
Morningstar Qualitative Rating:
Franklin India Bluechip Fund
We believe Franklin India Bluechip has the resources to be among the best in its class.
Market Roundup
Indian Equity Markets
It was a rough ride for the markets during the month of March with both global and domestic factors being equally responsible for the disappointment.
Global Equity Markets
Global equity markets were mixed, with some indices rising cautiously, while the others fell primarily focused on developments in Europe.
Indian Debt Markets
Government bond yields shot up sharply on concerns that deluge of dated securities that will hit bond markets, as a part of government’s borrowing programme for FY 2012-13.
Mutual Fund Update
Fund Flows & Asset Trends
Mutual fund assets dip 13% month-on-month in March with year – end and advance tax obligations denting both flows and AUM.
Fund Category Performance
Defensives return back in favour in March, and mid-cap funds outperform their large-cap cousins. Interest rate sensitive’s like banking and infrastructure funds deliver negative returns, after outperforming in the previous two months. Gilt funds also yield negative returns, with bond yields rising sharply during the month.
Portfolio Analysis of Diversified Equity Funds
In February, cash levels of diversified equity funds fell to its lowest level in 2 years. Exposure to mid-cap stocks also fell considerably. Fund managers continued to increase allocation to interest-sensitive sectors.
Mutual Fund News
Get an update on what’s happening in the mutual fund industry.
Top Rated Funds
List of Morningstar top rated funds over 3 years
Do write to us with your views and feedback.
Please click here to download the full newsletter
Thank you,
Morningstar India