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
Technology funds were a silver lining in May
FEFI PERFORMANCE UPDATE
The equity markets (Sensex and Nifty Index) continued its poor performance in May as well on global concerns. The BSE Sensex index started the month at 17302 and closed at 16219 posting an absolute negative return of 6.35%. The domestic (mutual funds) and foreign financial institutions were net sellers in May. FEFI began the month with 1,900 points and ended the month at 1,797 points losing 103 points, down by 5.55% on a month-on-month basis.
It can be clearly seen from chart 1 that, the FEFI has outperformed the Sensex, both on a monthly basis and on a year to date basis.
Chart 1: Comparative performance of
FEFI with SENSEX since 31 December 2011
Most of the equity indices on Bombay Stock Exchange delivered negative returns for the month of May. The returns from all the indices ranged from -0.67% to -16.65%. The BSE Midcap and Smallcap index underperformed the broader indices like Sensex and S&P CNX Nifty. The BSE Midcap and Smallcap indices posted returns of -6.46% and 7.30% respectively, whereas Sensex and S&P CNX Nifty gave returns of -6.35% and -6.17% respectively.
BSE Information Technology Index lost the least, delivering -0.67% on a monthly basis. The falling rupee is benefiting IT companies. BSE Auto was the worst performing sector in May - negative returns of 16.65%. On the one hand, the market may have been thinking about the dip in demand for petrol vehicles due to the sharp increase of petrol price by Rs. 7.50 while on the other, the news about additional excise duties on diesel vehicles would have further hurt the sentiment.
Table 1: FEFI Index levels
31 December 2011
31 January 2012
29 February 2012
30 March 2012
30 April 2012
31 May 2012
TOP 5 FUNDS ON
Technology Funds were the top performers for the month of April. Out of the top 5 slots, 3 slots were occupied by the Technology Funds. Indian IT companies generate major chunk of their revenue from overseas markets. The Indian currency has depreciated by almost 7% against dollar in May which will have positive impact for export oriented companies.
Edelweiss Equity Enhancer Fund Plan A was the top performer in April returning 0.08% returns.
Table 2: Top 5 Equity Funds on Fundsupermart.com in May 2012
Edelweiss Equity Enhancer Fund Plan A (G)
ING Global Real Estate Fund (G)
ICICI Prudential Technology Fund (G)
Franklin Infotech Fund (G)
DSP BlackRock Technology.com Fund (G)
BOTTOM 5 FUNDS ON FUNDSUPERMART.COM
The bottom five slots were occupied by the Global (commodity related), Speciality and Infrastructure Funds. The global fund which focuses on commodity has occupied 2 slots out of 5 and the remaining 2 slots were occupied by the Speciality Funds.
DSP BlackRock World Mining Fund was the bottom performer in May delivering a negative return close to 11.88% on a month-on-month basis.
Table 3: Bottom 5 Equity Funds on Fundsupermart.com in May 2012
DSP BlackRock World Mining Fund (G)
Reliance Infrastructure Fund (G)
JM Basic Fund (G)
HSBC Progressive Themes Fund (G)
ING Global Commodities Fund (G)
The Research Team is part of iFAST Financial India Pvt Ltd
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