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BW Businessworld

The Money Multipliers

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The gravy train continues to roll. And mutual funds (MF) have the first-class coach all to themselves. The MF industry grew a whopping 33 per cent in the last 14 months, to touch a phenomenal Rs 12 lakh crore (assets under management) in February 2015. So, what better time to put together a package on the industry than the present.

In association with reputed funds tracker Morningstar, BW has put together a definitive ranking of MFs across categories. The ranking was done on the basis of three-year returns (average annualised returns) of individual funds; that is, the period between 1 February 2012 and 30 January 2015.

While almost all categories performed well in the past year, the small/mid-cap category logged over 70 per cent gains. Others — ranging from flexicap and large-cap to tax-savers — posted between 40 and 60 per cent gains. Also, the period witnessed the movement of funds by many investors from other asset classes to MFs. Going forward, experts believe that equity funds will do even better, given the overhang of low crude prices and improved macroeconomic climate.

Associate editor Shailesh Menon conceived of and anchored the entire package. He spent long hours poring over data to discern trends. Besides, he got up close and personal with top-ranking fund managers to cajole them into parting with invaluable nuggets on how they did it. A must read.

This issue we also look at the unending saga of Subrata Roy. It’s been over a year in Tihar Jail for the Sahara supremo. He’s been unable to fork out the Rs 10,000 crore set as bail by the Supreme Court. Meanwhile, the money he owes SEBI continues to mount — Rs 40,000 crore at last count. With the court setting a 90-day deadline for him to furnish the bail bond, the threat of the group going into liquidation looms large. Deputy editor Gurbir Singh and senior associate editor C.H. Unnikrishnan ask the really tough questions and attempt to get answers to whether Sahara will survive to tell the tale. Read the story on page 26.

In our books section, we have, of late, begun carrying extracts of highly anticipated works. This issue, we have no less than UTV founder Ronnie Screwvala’s Dream With Your Eyes Open, an autobiographical account of his entrepreneurial journey. Catch the excerpts on page 100.
All in all, a cracker of an issue, I promise. Enjoy responsibly!
 
(This story was published in BW | Businessworld Issue Dated 20-03-2015)