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Can be missed

MONEY TODAY and Value Research team up to analyse select new schemes being launched by fund houses.

On the performance front, Canbank Mutual Fund's past schemes have not been very promising. The fund house currently manages seven open-end diversified equity funds, out of which four are more than five years old. But only Canfortune '94 has managed to stay ahead of an average peer over the last five-year period (as on 14 December 2006), while the remaining three are stacked in the bottom quartile. On a shorter one year period too, none of these seven have managed to beat the category average.

Umesh Kamath is the designated fund manager for CanMulticap. He is managing six other funds four diversified equity funds and two hybrids) since January 2006. But again, the performance has not been all that great. Among the equity funds that he manages, the best performer during his tenure so has been CanInfrastructure, but ranks far down at 88th position out of 146 funds in the category.

As for CanMulticap, there will be no entry or exit load. However, for redemption before maturity, the proportionate, unamortised fund expenses shall be recovered. The fund will provide the liquidity window on the first and third Wednesday of every calendar month.

The only positive thing is the economy with which Canbank manages its funds. None of its equity funds has an expense ratio of over 1.25%, and this ranks them among the most economical funds. However, minor savings in expenses are not that relevant, given the under-performance of the funds.