The Hindu Business Line : Diversified equity schemes outperform benchmark indices

Mumbai, Nov. 1 Diversified equity scheme returns have outperformed the benchmarks (the BSE Sensex and the NSE’s S&P CNX Nifty) and most other category funds in the past one month.

Equity diversified schemes on an average gave returns of 3.29 per cent in November, according to Value Research data.

Among them, the top performing schemes include Fortis China India fund, which gave a return of 13 per cent, ICICI Prudential Focussed Equity (12.50 per cent), JM Multi Strategy (18.30 per cent) and Lotus India Agile Fund (11.68 per cent).

The Sensex has given a return of 0.94 per cent in the past month, while the Nifty gave returns of 2.63 per cent.

The only sector-based funds to have outperformed the equity diversified category are FMCG funds, which have given a return of 6.08 per cent on an average.

FMCG being a defensive sector is a preferred investment sector during market uncertainities, said Ms Mallika Baheti, mutual fund analyst, Sharekhan Ltd. It is an attractive investment option as most FMCG companies are seeing a healthy balance sheet and strong cash flows, she added.

FMCG

Among FMCG schemes, Franklin FMCG logged in a positive return of 5.70 per cent, ICICI Prudential FMCG of 7.24 per cent and Magnum FMCG has 5.30 per cent.

The debt category funds have given returns in the range of 0.72 per cent to 1.86 per cent.

While banking funds on an average have managed to give positive returns last month, most other sector based funds on an average logged in negative returns for November.

Banking funds

While the banking funds on an average gave positive returns of three per cent, technology funds gave negative returns of 2.25 per cent on an average.

Auto funds have given a negative return of 0.95 per cent and pharma funds on an average gave negative returns of 0.32 per cent.

With the general fall in the demand for automobiles, the auto stocks are getting affected, said a fund manager with a mutual fund.

Gold ETFs gave the highest returns of 13.18 per cent.

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