AMFI Registered Mutual Fund Distributor | SEBI registered Investment Adviser
                Fundsupermart.com | Global   
SEARCH 
  Help us contact you
  *   
  *   
     
 
Research
   SUBSCRIBE TO E-NEWSLETTER
Subscribe
Share |
  Email
Print
more
Mutual Funds outperform equity markets in April May 7, 2010
The FEFI April update
Author : iFAST Research Team


Untitled Document

April: subdued month for the markets

BSE SENSEX and NIFTY closed April with modest gains of 0.18% and 0.55% respectively. However, the midcap indices from both BSE and NSE gave handsome returns. The BSE Midcap and CNX Midcap index have gained 5.56% and 4.42% respectively. Greece continues to be the main cause of volatility in the global and Indian markets. However, the main reason for the market to end in the positive has been the positive year-end numbers of the companies.

FEFI PERFORMANCE UPDATE

FEFI began April at 1868 points but closed the month with a gain of 48 points (or 4.66%) to close at 1916 points. FEFI was on the rise till the middle of the month but within a span of 3 days, the index dropped by 41 points to 1875 before turning around to touch the month high of 1920 points on 27 April. Considering the performance of the indices, we think that the fund managers have done a good job in managing the equity funds in April.

Chart 1: FEFI Performance for 2010


Table 1: FEFI Index levels

FEFI

Year-to-date (%)

Month-to-date (%)

31 December 2009 1831.56 - -
31 January 2010 1763.09 - -3.7%
28 February 2010 1745.48 -4.7% -1.0%
31 March 2010 1868.57 2.02% 7.05%
30 April 2010 1916.83 2.58% 4.66%

Table 2: Top 5 Equity funds on our platform in April

  Sector YTD Returns MTD Returns
RELIANCE BANKING FUND- GROWTH Banking 14.5% 8.9%
RELIANCE MEDIA & ENTERTAINMENT FUND GROWTH PLAN- GROWTH Speciality 5.9% 8.1%
BSL COMMODITY EQUITIES FUND GLOBAL PRECIOUS METALS- GROWTH Overseas 0.9% 8.0%
UTI MASTER VALUE FUND- GROWTH Contra / Value 8.4% 7.4%
EMERGING BUSINESS FUND- GROWTH Speciality 13.3% 6.9%

Mostly sectoral and specialty funds have done well in April. The Reliance Banking fund is our recommended fund for the Banking sector. The UTI Master Value fund is one of the good contra funds and has been in the top 5 equity funds list twice since we started covering FEFI in Nov 2009. The BSL Commodity fund – Global Precious Metals (GPM) plan has done well primarily due to more money chasing safer investments, on account of uncertainty in Europe. The GPM fund has done well despite the rupee appreciating 1.32% in April with respect to the US Dollar

 

 Table 3: Bottom 5 Equity funds on our platform in April

  Sector YTD Returns MTD Returns
BSL COMMODITIES EQUITIES FUND GLOBAL MULTI COMMODITY PLAN- GROWTH Overseas 14.5% 8.9%
RELIANCE NATURAL RESOURCES FUND- GROWTH Speciality 5.9% 8.1%
MIRAE ASSET GLOBAL COMMODITY STOCKS FUND- GROWTH Overseas 0.9% 8.0%
JM TELECOM SECTOR FUND- GROWTH Speciality 8.4% 7.4%
BSL COMMODITY EQUITIES FUND GLOBAL AGRI PLAN- GROWTH Overseas 13.3% 6.9%

Mostly funds that invest outside India have been the bottom performers in April. The continuing uncertainty of European countries (mainly of Greece), and the rupee appreciating by 1.32% have contributed to global funds underperforming in April.


Related Articles
FEFI Closes FY 2009-2010 with a Bang!
Small and Mid-cap funds underperform FEFI in February 2010
FEFI falls 3.7% in January 2010
FSM All-Equity Fund Index (FEFI) rises 83% in 2009
FEFI rises again after a blip in October
FEFI Update - October
FEFI index methodology.

Useful Link

Recommended Funds
Chart Center




iFAST and/or its content and research team’s licensed representatives may own or have positions in the mutual funds of any of the Asset Management Company mentioned or referred to in the article, and may from time to time add or dispose of, or be materially interested in any such. This article is not to be construed as an offer or solicitation for the subscription, purchase or sale of any mutual fund. No investment decision should be taken without first viewing a mutual fund's offer document/scheme additional information/scheme information document. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Investors should seek for professional investment, tax, and legal advice before making an investment or any other decision. Past performance and any forecast is not necessarily indicative of the future or likely performance of the mutual fund. The value of mutual funds and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.

 


Comments (0) | Comment on this Article
 (Click on Comments/Comment on this Article to show or hide comments/post a comment)
USEFUL LINKS
Recommended Funds
Recommended Portfolios
Chart Centre
Risk Profiler