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Ind Sagar

Dhirendra Kumar

Ind Sagar is a ten-year closed-end equity fund of the Indbank Mutual Fund due for redemption in September 2001. Currently the fund is open for repurchase at a 5 per cent discount to its NAV. The fund is very infrequently traded in the markets. Ind Sagar has since its launch till date given an annualised return of 5.4 per cent as against a 11.9 per cent by the BSE Sensex.

The fund has been an absolute non-performer in its long history of almost nine years. After its run with the market in its first four years, the fund never recovered from the 1994 market slide led by the IPO debacle. The fund was unable to clean its portfolio for many years and the NAV only fell over the years from a high of Rs 28.81 in November 1994. Besides the fall, the portfolio was largely saddled with low quality equities -- small and mid-cap stocks, till March 1999.

The fund does not disclose its full portfolio frequently, however, since the 1999 till March 7, 2000, before the downslide triggered by the tech wreck the fund gained 85 per cent. The long-term prospects of the fund is bleak. Even if the fund would have taken the opportunity of weeding out its illiquid stocks in the surging markets of 1999, investors should exit the fund in favour of other funds with superior performance track-record.

Fund Basics
Objective	Size (Cr)	NAV: 12/7/2000	Mkt. Price	Prem./Disc.	Total Returns (%)
Growth	20.46	15.95	14.2	-11%	5.39%
Benchmark Comparisons (%)					30/6/2000
	1M	3M	6M	1Yr	3Yr
Fund	7.1	-6.9	0.3	42.3	8.7
Nifty Tot. Ret.	6.7	-3.1	0.2	29.0	8.8
Sensex	7.1	-5.0	-5.1	14.7	3.7
Obj Avg	9.6	-18.2	-13.2	35.3	12.4
Top Holdings (31/3/1999)
A T V Projects India
Abhishek Industries
American Dry Fruits
Arvind Mills
Asea Brown Boveri
Asian Consolidated Inds.
Asian Fertilizers
Asian Industries & Enterprises Sa
B P L Engineering
B P L Refrigeration
B S E S
Balaji Industrial Corpn.
Balrampur Chini Mills
Baroda Rayon Corpn.

Source: Value Research

Fund File

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