Two tough weeks and suddenly new funds have started to look ugly. Of the 21 funds launched this year, 19 have slipped below Rs 10, eroding investors' money worth over Rs 2,400 crore. This is when majority of them are yet to deploy the money they raised during their NFOs.
Between May 10 and May 24, the BSE Sensex tumbled a little over 2,000 points or 16 per cent. New funds lost an average 15.31 per cent with five of them losing over 17 per cent. The worst hit are investors of Birla Infrastructure--the fund lost 17.72 per cent during the period. Newsmaker Reliance Equity fund lost 12.19 per cent with only 59 per cent of its portfolio invested in equities at April end.
Fidelity India Special Situations fund, that disclosed its first NAV yesterday, opened below par at Rs 9.73. Same is true for Templeton India Equity Income and Sundaram Rural India--the funds' NAV dropped to Rs 9.62 and Rs 9.82, respectively. ABN AMRO Future Leader fund, which had began its life at Rs 10.41 on May 11, has seen its NAV crash to Rs 8.97 yesterday, a drop of 13.81 per cent in a matter of just days.
No comments:
Post a Comment