Eagle growth fund records 46.78% return for 9 months

Eagle Growth Fund generated an excellent return of 46.78% (based on the manager's selling price) for the first 9 months of the year taking full advantage of the boom in the stock market. The rise in the stock market combined with Eagle NDB's professional fund management expertise where fundamental value is the guiding principle for stock selection were the reasons for this result.

The high returns generated amply demonstrates that retail investors too could easily access the stock market and enjoy its returns by investing through Unit Trusts, an investment vehicle created for the retail investors in particular.

Eagle Growth Fund is the premier equity fund managed by Eagle NDB, one of the largest licensed Asset Management Company with over Rs. 14 billion assets under management. For the retail investor, Eagle NDB offers a range of mutual funds: the Eagle Growth Fund, the Eagle Gilt Edged Fund and the Eagle Income Fund to cater to investors with varying return/risk preferences where they can use the funds in different proportions to build an investment portfolio of their own.

The Colombo Stock Exchange has been amongst the best performing markets in the world over the past four years and has generated a return of approximately 380% since December 31, 2000. The average return was approximately 36% over the past four years.

"This builds a compelling case for investments into equity, with attractive risk premiums on offer in this asset class, especially in the midst of relatively low interest rates." Sheyantha Abeykoon, Fund Manager of the Eagle Growth Fund said.

"Identification of undervalued counters with attractive upside and backed by sound fundamentals is the cornerstone of our research and investment processes which has enabled the fund to deliver stellar returns for the period under review," he said.

Eagle Growth Fund is a convenient investment vehicle to gain exposure to such returns with minimal knowledge required of the stock market as the investments are handled by Eagle NDB's team of prudent and highly skilled fund managers. The minimum required investment of Rs. 5,000 can give an investor an exposure to a diversified portfolio of 15 to 20 stocks, something which cannot be achieved with small sums of money if invested directly into the market.