Negative Returns in Liquid Fund??????

Dear All,
Recently, Business Standard carried a article where it claimed that a Liquid Fund from Edelweiss Mutual Fund has posted a Negative NAV. I was stumped, how can this happen?. It was next to impossible.
Thankfully, Edelweiss People responded with a email clarifying things. This is how their email went :

From: EdelweissMF
Sent: Wednesday, October 15, 2008 11:43 AM
Subject: IMPORTANT: Clarification on today's article in Business Standard
Importance: High

Dear Sir / Madam,

With reference to the article on "Edelweiss Liquid Plus Fund Dividend Fortnightly " having seen negative returns in Business Standard today, please note that this data is factually totally incorrect and incomplete. While the source of data is valueresearch and from a factual point of view, the NAVs mentioned are right, the interpretation of data by the journalist is absolutely wrong and irrelevant. The journalist has first of all compared returns of the dividend option (instead of growth as is the industry norm). Moreover, he has incorrectly presented this incomplete data. The reason why there is a fall in the NAV is because of a declaration of dividend on Monday, the 13th of October on the Friday NAV. Obviously if a dividend has been declared in any scheme, the NAV will fall to the extent of the dividend declared and that is exactly what has happened in this case.

Please not that there has not been even a single day of negative returns in either the Edelweiss Liquid Fund or the Edelweiss Liquid Plus Fund till date.

Enclosed are the returns as on October 13th 2008 of both Edelweiss Liquid Fund and Edelweiss Liquid Plus Fund:

SIMPLE ANNUALIZED RETURNS FOR EDELWEISS LIQUID FUND
Scheme Name	NAV (13-Oct-08)	1 Week	2 Weeks	1 Month	Since Inception
Edelweiss Liquid Fund - IP - Growth	10.1109	11.7329	12.9828	11.9325	11.9054
Edelweiss Liquid Fund - Ret - Growth	10.1108	11.4223	12.7747	11.8958	11.8947
Edelweiss Liquid Fund - Super IP - Growth	10.1109	11.4739	12.9568	11.9202	11.9054
Crisil Liquid Fund Index		5.1966	7.854	8.1131
ABSOLUTE RETURNS FOR EDELWEISS LIQUID PLUS FUND
Scheme Name	NAV (13-Oct-08)	1 Week	2 Weeks	1 Month	Since Inception
Edelweiss Liquid Plus Fund - IP - Growth	10.1065	0.2152	0.4253	0.957	1.065
Edelweiss Liquid Plus Fund - Ret - Growth	10.1062	0.2152	0.4253	0.953	1.062
Indices
Crisil Liquid Fund Index		0.0854	0.2797	0.6446
Source: www.mutualfundsindia.com

Returns are computed of the growth options of the respective schemes. Past performance may or may not be sustained in future. Such information is not necessary indicative of future results and may not necessarily provide a basis for comparison with other investments.

Both Edelweiss Liquid and Liquid Plus Funds continue to outperform their benchmark across various time frames.

We look forward to your continued patronage of our funds.

Warm regards,

Marketing@EdelweissMF

And, wonder of wonders, Business Standard carried the Clarification the next day.
Thank God for small mercies.
Srikanth Shankar Matrubai

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