Its 6 months since the horrific attacks on the World Trade Center on September 11. Post 9/11, global markets tanked and equities were the last thing on any investor's mind. The scenario was no different in India, as listless markets fell even further. However, within 6 months we have witnessed Indian markets do a Houdini. We have ranked equity funds in our database to find out the best performing funds over the last 6 months.

Domestic equity funds are witnessing a revival of some sort with the rebound in equity markets. The performance of equity funds over the last 6 months in particular, reflects this rather dramatic turnaround (see table below). While the 9/11 attacks hurt most equity markets there are some noteworthy points with regards to Indian markets. Soon after the 9/11 attacks, we saw attacks on the Parliament House and the markets witnessed a selling frenzy all over again. Then we saw (and are still seeing) communal tension in Gujarat but the markets held up admirably nevertheless. Post 9/11, the Sensex has recovered from 2,600 to over 3,600, a growth of over 38% in just 6 months!

Adversity beckons prosperity

GROWTH FUNDS	NAV (Rs)	NAV DATE	1-MTH	6-MTH	1-YR	INCEP.
PIONEER I PRIMA FUND G	26.6	8-Mar	12.7%	61.5%	24.4%	12.6%
GIC FORTUNE 94	6.6	8-Mar	12.8%	45.0%	8.5%	-5.0%
RELIANCE VISION	18.9	8-Mar	7.9%	41.2%	16.2%	10.1%
ZURICH I EQUITY G	22.3	8-Mar	9.1%	36.3%	20.6%	12.7%
ING GROWTH G	8.3	8-Mar	7.8%	33.8%	-16.5%	-5.7%
PIONEER I PRIMA PLUS G	24.7	8-Mar	11.4%	31.9%	14.1%	14.5%
DSP ML OPP G	8.4	8-Mar	6.9%	31.7%	-0.4%	-3.2%
BOINANZA EXCL G	9.2	8-Mar	5.1%	31.5%	23.1%	1.3%
PIONEER I BLUECHIP G	23.8	8-Mar	11.5%	31.0%	7.3%	24.4%
FRANKLIN GROWTH	5.8	8-Mar	6.0%	29.7%	4.1%	-24.6%

(Returns over 1-Yr are annualised)

Investors who had jumped at the opportunity of entering the market at 2,600 levels are seeing the rewards of buying while everyone around them was selling. Investing has a lot to do with bravery and holding one's nerves in adversity and this is good proof of that. This also serves to highlight a cardinal investment principle if you want to make money enter low and exit high and not the other way round.

 

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