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
Global funds have excel in March
FEFI PERFORMANCE UPDATE
Equity markets closed in red in March after a fantastic performance in January and February. The BSE Sensex index started the month at 17584 and closed at 17404 with posting a negative return of 1.96%. The equity markets rallied in the first two months of the year on optimism of probable reversal of interest rate cycle and expectations from the union budget. However, neither the budget nor any reversal of interest rate cycle has helped the markets to continue its upward momentum March. FEFI began the month with 1,917 points and ended the month at 1,923 points losing 7 points, or down by 0.36% 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 March, FEFI delivered returns of -0.36% while SENSEX ended the month returning -1.96%.
Chart 1: Comparative performance of
FEFI with SENSEX since 31 December 2011
MARKET UPDATE
Most of the equity indices on Bombay Stock Exchange gave negative returns in March except for Healthcare, FMCG & Auto which returned in the range of -9.13% to 7.83%. The BSE Midcap index outperformed the broader indices like Sensex and S&P CNX Nifty whereas BSE Smallcap Index has underperformed. The BSE Midcap and Smallcap indices gave a return of -0.63% and -3.36% respectively, whereas Sensex and S&P CNX Nifty gave returns of -1.96% and -1.66% respectively.
BSE FMCG Index has delivered the best returns, delivering 7.83%, the growing demand in the urban and in the rural areas could be the reason for the outperformance. Healthcare and Auto are the other two sectors which posted positive returns in March. Other broad based indices like BSE 100, BSE 200, BSE 500, CNX 100 and CNX 500 also closed in the red.
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
TOP 5 FUNDS ON
FUNDSUPERMART.COM
FMCG Fund along with Global Funds was the top performers in the month of March. Out of top 5 slots, 4 slots were occupied by the Global Funds. The outperformance of global equity markets against Indian markets could be the reason of outperformance of Global Funds.
ICICI Prudential FMCG Fund was the top performer in March returning 7.98% returns.
Table 2: Top 5 Equity Funds on Fundsupermart.com in March 2012
Category
MTD
YTD
ICICI Prudential FMCG Fund (G)
FMCG
7.98%
12.87%
FT India Feeder - Franklin U.S. Opportunities Fund (G)
Global
6.89%
NA
ING Global Real Estate Fund (G)
Global
5.37%
6.99%
DWS Global Agribusiness Offshore Fund (G)
Global
5.02%
10.01%
Birla Sun Life International Equity Fund - Plan A (G)
Global
4.94%
6.34%
BOTTOM 5 FUNDS ON FUNDSUPERMART.COM
The bottom five slots were majorly occupied by Global Funds. The Global Funds which invests across companies engaged in mining of precious metals has underperformed in March. The underperformance of gold could be the reason of underperformance of these funds.
Birla Sun Life Commodity Equities Fund - Global Precious Metals Plan was the bottom performer in March delivering negative returns close to 11.67% on a month-on-month basis. This was the bottom performing fund in February as well.
Table 3: Bottom 5 Equity Funds on Fundsupermart.com in March 2012
Category
MTD
YTD
Birla Sun Life Commodity Equities Fund - Global Precious Metals Plan (G)
Global
-11.67%
-5.53%
DSP BlackRock World Gold Fund (G)
Global
-9.73%
-6.35%
AIG World Gold Fund (G)
Global
-7.79%
-6.00%
DSP BlackRock World Mining Fund (G)
Global
-7.00%
0.33%
Baroda Pioneer PSU Equity Fund (G)
Speciality
-5.30%
14.00%
The Research Team is part of iFAST Financial India Pvt Ltd
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