Financial Daily from THE HINDU group of publications
Friday, Jun 02, 2006
Financial Daily from THE HINDU group of publications Friday, Jun 02, 2006 |
|
|
|
|
|
|
|
Home Page
-
Stock Markets Markets - Mutual Funds Nilanjan Dey
Scorecard Despite recent turmoil, FMCG funds provided a return of 54% Diversified funds with 50% return came second Sundaram Select Midcap & Magnum Global were top performers under diversified category
Kolkata , June 1 Investors in equity funds are losing money, perhaps more quickly than they grossed it. A look at the latest NAVs, especially after Wednesday's drop of 300-plus points, underlines what now seems to be snowballing into a firm trend in the world of MFs - wealth erosion. FMCG funds, which for long have occupied the top-slot in the list of performers, are still at the top. Their edge, however, seems to have become blunted, considering the fact that their one-year average score has whittled down to a mere 54 per cent. This is quite a downturn, given the kind of returns they were delivering before the slump set in. Following the FMCG plays are normal diversified funds (the tax-planners included), which have provided roughly 50 per cent (as on May 31, 2006). Funds dedicated to technology and pharma have given 46 per cent and 35 per cent respectively to their unit holders. MF industry sources straightaway attribute the trend to the telltale decline in the broad market, a situation that fund managers are grappling with at this very moment. There is all-round concern that wealth is getting lost and further losses may well be in store, they add. The feeling draws strength from the fact that stock prices are sinking fast, a development that can have bigger ramifications for those who have made their pile and have still remained invested. The dozen-plus schemes that are particularly off their Rs 10-mark include the newly launched Fidelity Special Situations Fund as well as DBS Chola Contra, Baroda Global, JM HI FI, Templeton Equity Income and Quantum Long-Term Equity. In the diversified category, the list of performers is topped by the likes of Sundaram Select Midcap (96 per cent), Magnum Global (82 per cent) and Magnum Multiplier (80 per cent). At the other end of the spectrum are UTI PSU, UTI India Advantage Equity and Birla Dividend Yield Plus. Each has provided 21-26 per cent in the past year.
Index funds catching up
Index funds that mirror the two popular indices, Sensex and Nifty, are catching up, finally. These schemes have on an average delivered 47 per cent or so in the past year, data compiled by Value Research suggest. The index products, which MF circles say were largely ignored in a backdrop marked by actively managed growth schemes, have been relatively lower in the pecking order. These are now coming up, especially because of the nature of their holdings — large-cap, heavyweights that make up the two commonly used benchmarks. The stocks have been comparatively stable, despite some obvious losses they suffered in this sharply declining market. On a six-month basis, the index trackers have almost caught up with their actively managed counterparts. The former have delivered approximately 15 per cent, just a shade lower than those that are trying to beat the indices.
More Stories on : Stock Markets | Mutual Funds
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
