Top-performing mutual funds in Nov 2007

The month was marred by intense volatility as equity markets rose and fell sharply with alarming regularity. It was a month in contrast for the benchmark indices. The CNX Midcap appreciated by 7.30% before settling at 7,994 points.

Conversely, the large cap indices i.e. BSE Sensex and S&P CNX Nifty closed the month in negative terrain. The BSE Sensex shed 2.39% during the month and closed at 19,363 points; the S&P CNX Nifty posted a loss of 2.34% to close at 5,763 points.

In November 2007, Foreign Institutional Investors (FIIs) were net sellers of equities to the tune of Rs 45,974 m (as on November 30, 2007). On the contrary, mutual funds were net buyers with purchases of Rs 28,366 m.

Incidentally, this month we profiled Sundaram Select Midcap Fund, a leading mid cap fund. Mid cap stocks tend to be more risky investment propositions as compared to their large cap peers. Mid cap funds imbibe similar properties.

Sundaram Select Midcap's performance is truly noteworthy on several counts. Not only does the fund have an impressive track record on the returns front over longer time frames vis-�-vis its peers, it also scores favourably on the risk parameters. Sundaram Select Midcap's impressive performance can in no small measure be attributed to its fund house's process-driven investment approach.

Monthly top performers: Open-ended equity funds

Equity Funds	NAV (Rs)	1-Mth	6-Mth	1-Yr	SD	SR
Tauras Discovery Stock	27.63	13.75%	62.43%	85.19%	12.51%	0.26%
Reliance [ Get Quote] Media & Ent.	35.34	11.39%	21.07%	58.62%	9.37%	0.36%
ING Dividend Yield	16.34	10.78%	32.09%	47.74%	8.58%	0.21%
JM Financial [ Get Quote] Services	17.42	9.38%	46.25%	-	-	-
JM Emerging Leaders	17.53	8.95%	50.94%	62.28%	8.50%	0.25%

(Source: Credence Analytics. NAV data as on November 30, 2007.)
(Standard Deviation highlights the element of risk associated with the fund. Sharpe Ratio is a measure of the returns offered by the fund vis-�-vis those offered by a risk-free instrument)

Tauras Discovery Stock (13.75%) emerged as the top performer in the equity funds segment. Reliance Media and Entertainment (11.39%) and ING Dividend Yield (10.78%) occupied second and third positions respectively.

Monthly top performers: Open-ended long-term debt funds

Debt Funds	NAV (Rs)	1-Mth	6-Mth	1-Yr	SD	SR
ABN AMRO Flexi Debt	12.19	0.81%	3.39%	8.00%	0.23%	0.42%
Reliance Income	24.90	0.78%	6.28%	7.62%	0.60%	0.01%
ICICI [ Get Quote] Pru. Income	23.86	0.76%	7.69%	7.52%	0.91%	0.00%
JM Income	29.95	0.76%	3.23%	5.33%	0.32%	-0.68%
Kotak Bond	21.07	0.75%	6.47%	8.69%	0.48%	0.15%

(Source: Credence Analytics. NAV data as on November 30, 2007.)

ABN AMRO Flexi Debt (0.81%) occupied the top slot in the long-term debt funds category. Reliance Income (0.78%) and ICICI Prudential Income (0.76%) also featured in the top performers' list.

Monthly top performers: Open-ended balanced funds

Balanced Funds	NAV (Rs)	1-Mth	6-Mth	1-Yr	SD	SR
LIC [ Get Quote] MF Balanced	65.82	9.72%	49.17%	45.42%	7.36%	0.32%
ING Balance	25.28	2.89%	31.32%	40.68%	6.47%	0.28%
Kotak Balance	30.68	2.34%	32.88%	42.16%	6.86%	0.35%
DSP ML Balance	52.86	2.34%	23.91%	39.34%	6.51%	0.36%
Tata Balanced	72.47	1.44%	33.69%	48.31%	7.37%	0.37%

(Source: Credence Analytics. NAV data as on November 30, 2007.)

LIC MF Balanced (9.72%) topped the balanced funds segment powered by a superlative performance. ING Balance (2.89%) and Kotak Balance ( 2.34%) came in at second and third positions respectively.

At Personalfn, we have consistently emphasised the importance of not losing sight of one's risk appetite while investing. An often-repeated quote is 'one size doesn't fit all.'

In other words, investing is a rather subjective matter. What's right for one investor (say a high risk-taker) can be grossly unsuitable for another (say a low risk-taker).

More importantly, it must be understood that one's risk appetite is independent of market conditions. Hence there is a need for investors to appreciate that taking on higher risk to make the most of rising markets is unwarranted. In conclusion, adhere to your risk appetite at all times and you should do well for yourself over the long-term.