We bring you an update on the Fundsupermart Equity Fund Index (FEFI) performance as well as the best and the worst performing funds on Fundsupermart.com.
Author : iFAST Research Team
Banking Funds outclass in June
FEFI PERFORMANCE UPDATE
The Sensex and Nifty delivered an impressive performance in June and recovered the losses incurred in the previous two months. The expectations of a rate cut in the mid-quarter monetary policy review supported the positive performance of equity at the start of the month. While the market was disappointed with the halt in the rate cut, clarity on GAAR and some positive cues from the Euro-zone supported the positive performance. The Sensex started the month at 15965 and closed at 17430 posting an absolute positive return of 7.47%. The foreign institutional investors (FIIs) remained net sellers in June while domestic financial institutions (mutual funds) were net buyer. FEFI began the month with 1,773 points and ended with a gain of 98 points at 1,896, up by 5.47% on a month-on-month basis.
It can be clearly seen from chart 1 that the FEFI has underperformed the Sensex on a monthly basis but manage to outperform on a year-to-date basis.
Chart 1: Comparative performance of
FEFI with SENSEX since 31 December 2011
MARKET UPDATE
Most of the equity indices on the Bombay Stock Exchange (BSE) delivered positive returns for the month of June. The returns from all the indices ranged from 0.12% to 13.71%. The BSE Midcap and Smallcap index underperformed the broader indices like the Sensex and S&P CNX Nifty. The BSE Midcap and Smallcap indices posted returns of 4.16% and 4.35% respectively, whereas Sensex and S&P CNX Nifty gave returns of 7.47% and 7.20% respectively.
The BSE Capital Goods index outperformed, delivering 13.71% on a monthly basis. The interest rate sensitive sectors fared well on the expectation of reversal of interest rate cycle. BSE Consumer Durables was the worst performing sector in June posting returns of 0.12%.
Table 1: FEFI Index levels
FEFI
Year-to-date (%)
Month-to-date(%)
31 December 2011
1648.62
-
-
31 January 2012
1837.89
11.48
11.48
29 February 2012
1929.56
17.04
4.99
30 March 2012
1922.68
16.62
-0.36
30 April 2012
1902.88
15.42
-1.03
31 May 2012
1797.31
9.02
-5.55
29 June 2012
1895.57
14.98
5.47
TOP 5 FUNDS ON
FUNDSUPERMART.COM
Banking Funds were the top performers in June. Out of the top 5 slots, 4 were occupied by the Banking Funds. The probable reversal of the interest rate cycle could be the reason for outperformance of banking stocks.
UTI Banking Sector Fund was the top performer in June returning 10.63%.
Table 2: Top 5 Equity Funds on Fundsupermart.com in June 2012
Commodity funds have taken a beaten and the bottom five slots were dominated by the Global category. Global funds focused on commodities as well as a China-focussed fund featured here
Table 3: Bottom 5 Equity Funds on Fundsupermart.com in June 2012
Category
MTD
YTD
Birla Sun Life Commodity Equity Fund -Global Precious Metals Plan (G)
Global
-2.39%
-12.25%
ING Global Commodities Fund (G)
Global
-0.95%
-6.03%
Mirae Asset China Advantage Fund (G)
Global
-0.53%
5.10%
Birla Sun Life International Equity Fund -A(G)
Global
-0.35%
7.85%
Edelweiss Select Midcap Fund (G)
Mid & Smallcap
0.00%
10.73%
The Research Team is part of iFAST Financial India Pvt Ltd
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