FEFI opened July
at 1939.67 points and ended the month with a gain of 1.91% or 37 points
(on a month-on-month
basis). FEFI showed an upward trend throughout this month rising to the
monthly
high of 1996.74 points on 22 July, before losing 20 points towards the
end of
the month. The performance of FEFI on a month on month basis is shown
in Table 1 below.
The SENSEX and
NIFTY registered gains of 0.95% and 1.04% respectively in July. Most of
the
broad indices like the BSE 100, BSE 200, BSE 500, CNX 100 and CNX 500
gave
returns in the narrow range of 1.21% to 1.51% for July. However, the
BSE Midcap
Index and BSE Small cap Index gave a return of 3.62% and 3.06%
respectively in
July. Considering the performance of the market indices and FEFI, we
think that
the equity fund managers have done an average job in managing the
equity funds
in July.
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%
31
May 2010
1850.36
1.03%
-3.47%
30
June 2010
1939.67
5.90%
4.83%
31 July 2010
1976.86
7.92%
1.91%
Table 2: Top 5 Equity
funds on
our platform in July
The
BSL
Commodity Equities fund –
Global Agri Plan fund has rebounded
in July with returns
of 13.3%. This fund appeared in the bottom 5 performing funds list for
three months in
2010 and is one of the bottom
performers so far in this calendar year. However, due to the rally in
the
agribusiness stocks in July on account of good quarterly performance of
agribusinesses,
this fund has performed well. The benchmark index for this fund is
S&P
Global Agri business index, which has also given a return of 13.31% in
July.
The Rupee depreciating by 0.06% in July hasn’t made much
difference to the
performance of overseas funds.
The
banking
sector funds have taken three slots in the top 5 performing funds. The
BSE
Bankex and CNX Bank Index have given 7.19% and 7.36%. Banking stocks
have
rallied on account of strong year n year growth of 22.3% in non food
credit off-take
as on which
is higher than RBI’s
projection of 20% for FY 2010-11 and this is further aided by
expectations of continued
growth in credit off-take despite rate hikes by RBI.
Table
3: Bottom 5 Equity
funds on
our platform in July
The
BSL
Commodity Equities Fund – Global Precious Metals fund has
underperformed its
benchmark, the Dow Jones Precious Metals Index by a huge margin. The
Dow Jones
Precious Metals Index fell 3.8% in July. This was led by the fall in
Gold
commodity prices to the tune of 4.93%.
After
being one of the best performing sectors
in 2010, the Pharma sector stocks witnessed some profit booking in
July, with the
BSE Healthcare index falling by 2.64% during
the month. This has led to the Pharma funds dominating the
bottom performing
list in July.
The
Research Team is part of iFAST
Financial India Pvt Ltd
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
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