| CNBC-TV18 has polled around 13-15 fund houses barring Reliance, Franklin Mutual Fund. 82% of fund houses said that the market is fairly valued and rest said it is overvalued at current levels. 55% of them have kept target of 20000-22000. 33% said that the Sensex will go upto 22000-24000. | |
CNBC-TV18 has polled around 13-15 fund houses barring Reliance, Franklin Mutual Fund.
CNBC TV18 analyst Varinder Bansal reports that according to Mutual Funds poll, 82% of fund houses said that the market is fairly valued and rest said it is overvalued at current levels. Not a single fund house is saying that it is undervalued.
For the year-end Sensex target, 55% of them have kept target of 20000-22000. 33% said that the Sensex will go upto 22000-24000 while only 12% believe that it is likely to see 24000 mark as well.
Not a single fund house is seeing the Sensex around 18000-20000 or below 18000.
33% of polled fund houses will prefer midcap stocks under current circumstances while 28% prefer index stocks. Only 17% will favour small cap shares and balance 22% will have preference to non-Index large cap stocks.
According to the CNBC-TV18 poll, most bullish sector for 2008 will be banks, ferrous metal and construction while IT, sugar, cement sectors will be neutral. In the case of bearish to neutral will be power, telecom and pharma.
Sector View (%)
| View on the sectors | Bullish | Bearish | Neutral |
| Banking | 100 | 0 | 0 |
| Ferrous Metal | 88 | 13 | 0 |
| Construction | 86 | 14 | 0 |
| Infra | 86 | 0 | 14 |
| Cap Goods | 75 | 0 | 25 |
| Real Estate | 63 | 25 | 13 |
| Non-ferrous metal | 57 | 14 | 29 |
| Power | 44 | 33 | 22 |
| Cement | 33 | 22 | 44 |
| Auto | 50 | 0 | 50 |
| Sugar | 38 | 13 | 50 |
| Media | 50 | 17 | 33 |
| FMCG | 60 | 0 | 40 |
| IT | 22 | 22 | 56 |
| Oil & Gas | 29 | 29 | 43 |
| Telecom | 14 | 43 | 43 |
| Pharma | 13 | 38 | 50 |
80% fund houses believe that equity diversified funds will do better whereas 10% favoured to sector specific and balance to thematic funds.
The last question of the poll - How much money will the fund house raise in 2008?
About 75% fund houses polled that they will raise more than 50% of the money raised in 2007 and 12.5% fund houses of total polled said that they will garnered 25%-50% more money that in 2007. The balance will raise 10%-25% more than in 2007.
Mutual Fund Poll Questionnaire and Answers
1) Market is
Fairly Valued: 82%
Over valued: 18%
Undervalued: Nil
2) What is year-end Sensex target?
20-22K: 55%
22-24K: 33%
Above 24: 12%
18-20K: NA
Below 18K: NA
3) Which stocks will the fund prefer under current circumstances?
Midcap: 33%
Index Stocks: 28%
Non-Index large cap: 22%
Small-cap: 17%
4) Sector views
Most Bullish Sector: Banks, Ferrous Metal & Constrcution
Neutral: IT, Sugar, Cement
Bearish to Neutral: Power, Telecom, Pharma
5) Which funds will do better?
Equity Diversified: 80%
Sector Specific: 10%
Thematic Funds: 10%
6) How much money will the fund houses raise in 2008?
More than 50% 2007: 75%
25%-50% more than in 2007: 12.5%
10%-25% more than in 2007: 12.5%
10%-25% more than in 2007: NA
Less than 2007: NA
By Varinder Bansal
