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 January
FEFI PERFORMANCE UPDATE
Equity market continued its rally in February as well, after a phenomenal performance in January. The BSE Sensex index reached to 17,753 from 17,193 at the end of 2011. The positive news on global front, better economic numbers from US and signs of improvement in debt ridden Euro-zone has revived the investors sentiment for equity. The improvement in risk appetite of global Financial Institutions has resulted in their return to emerging market economies. The FII’s had pumped in US$5127.7 million in February along with US$2037 million in January to total the inflow of US$ 7164 million in 2012. FEFI began the month with 1,851 points and closed the month at 1,930 points gaining 92 points, or up by 4.99% on a month-on-month basis.
As seen in chart 1, FEFI has managed to outperform Sensex on a monthly and year to date basis. In February, FEFI delivered returns of 4.99% while SENSEX ended the month returning 3.25%.
Chart 1: Comparative performance of
FEFI with SENSEX since 31 December 2011
MARKET UPDATE
BSE Realty Index has delivered the best returns of 14.49% which was also the second best performing sectoral index in January returning 24.17%. The sectors which underperformed in 2011 has outperformed in 2012 on to hopes of probable interest rate cycle reversal. Capital Goods and Power were the other two sectors which returned close to 10% in the month of February. Other broad based indices like BSE 100, BSE 200, BSE 500, CNX 100 and CNX 500 also closed in green.
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
TOP 5 FUNDS ON
FUNDSUPERMART.COM
Diversified along with Specialty funds were the top performers in the month of February. The top 5 slots are occupied by funds from, Midcap & Smallcap, Multicap and Dividend Yield categories. This is the second consecutive month when all top 5 places have been taken by Indian equity-oriented funds. The sectors which were severely beaten down in 2011 have outperformed in 2012.
HSBC Progressive Themes Fund was the top performer in the month of February with 11.85% returns. This fund was amongst the bottom performing fund in November and December 2011.
Table 2: Top 5 Equity Funds on Fundsupermart.com in February 2012
Category
MTD
YTD
HSBC Progressive Themes Fund (G)
Speciality
11.85%
35.00%
HSBC Midcap Equity Fund (G)
Midcap & Smallcap
11.31%
30.54%
Birla Sun Life India Opportunities Fund (G)
Multicap
10.04%
21.39%
Principal Dividend Yield Fund (G)
Dividend Yield
9.91%
23.05%
Canara Robeco Emerging Equity Fund (G)
Midcap & Smallcap
9.42%
21.85%
BOTTOM 5 FUNDS ON FUNDSUPERMART.COM
The Global Funds that were amongst the bottom performing funds invests in companies that are engaged in commodity or precious metals business. The underperformance of gold could be the reason of underperformance of these funds. Healthcare Index was the bottom performing Index in February. The underperformance of Pharmaceuticals companies had hit the performance of Pharmaceuticals funds.
Birla Sun Life Commodity Equities Fund - Global Precious Metals Plan was the bottom performer in February delivering negative returns close to 0.02% on a month-on-month basis.
Table 3: Bottom 5 Equity Funds on Fundsupermart.com in February 2012
Birla Sun Life Commodity Equities Fund - Global Precious Metals Plan (G)
Global
-0.02%
6.96%
The Research Team is part of iFAST Financial India Pvt Ltd
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