AMFI Registered Mutual Fund Distributor | SEBI registered Investment Adviser
FSM LOGO

                    


titl_l_gif
Research
title_r_gif
Share | Email Print more
Global Funds outperformed in July
August 10, 2012

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 June

FEFI PERFORMANCE UPDATE

After an impressive performance delivered in June, the Sensex and Nifty closed in negative territory in July.  The equity market remained directionless due to a lack of any policy initiatives. The Indian equity market underperformed against many global peers. The Sensex started the month at 17399 and closed at 17236 posting an absolute negative return of 1.11%. Unlike the month of June, foreign institutional investors (FIIs) turned net buyers in July and bought Rs. 10272.70 crore worth of equities while domestic financial institutions (mutual funds) sold Rs. 1988 crore worth of equities. FEFI began the month with 1,902 points and ended with a loss of 1.44 points, down by just 0.08% on a month-on-month basis.

It can be clearly seen from chart 1 that the FEFI has outperformed the Sensex on a monthly and year-to-date basis.

Chart 1: Comparative performance of FEFI with SENSEX since 31 December 2011

 

MARKET UPDATE

Most of the equity indices on the Bombay Stock Exchange (BSE) delivered negative returns for the month of July. Nevertheless, few sectoral indices delivered positive returns as well. The returns from all the indices ranged from -7.29% to 3.74%. The BSE Midcap and Smallcap indices underperformed the broader ones like Sensex and S&P CNX Nifty. The BSE Midcap and Smallcap indices posted returns of -2.30% and -1.46% respectively, whereas Sensex and S&P CNX Nifty gave returns of -1.11% and -0.95% respectively.

The BSE Healthcare index outperformed, delivering 3.74% on a monthly basis. BSE Information Technology was the worst performing sector in July posting returns of -7.29%.

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
30 April 2012 1902.88 15.42 -1.03
31 May 2012 1797.31 9.02 -5.55
29 June 2012 1895.57 14.98 5.47
31 July 2012 1894.13 14.89 -0.08

TOP 5 FUNDS ON FUNDSUPERMART.COM

Global Funds were the top performers in July. Out of the top 5 slots, 4 were occupied by the Global Funds. The outperformance of global equity markets compared to India could be the reason for this.

Birla Sun Life Commodity Equity Fund-Global Multi Commodity Fund (G) was the top performer in July returning 5.63%.

Table 2: Top 5 Equity Funds on Fundsupermart.com in July 2012

 
Category
MTD
YTD
Birla Sun Life Commodity Equity Fund-Global Multi Commodity Fund (G)
Global
5.63%
3.88%
Birla Sun Life Commodity Equity Fund-Global Agribusiness Fund (G)
Global
5.41%
11.81%
SBI Magnum Pharma Fund (G)
Pharma
5.27%
20.51%
JPMorgan JF ASEAN Equity Off-shore Fund (G)
Global
5.26%
19.68%
HSBC Brazil Fund (G)
Global
4.66%
2.31%

 

BOTTOM 5 FUNDS ON FUNDSUPERMART.COM

The bottom five slots were dominated by the Technology Funds. The underperformance of Information Technology companies due to slowdown in earnings growth has affected the performance of Technology Funds. Infosys, which has the highest exposure in the BSE Information Technology Index, severely underperformed in July after a relatively poor June quarter results announcement.

Table 3: Bottom 5 Equity Funds on Fundsupermart.com in July 2012

 
Category
MTD
YTD
ICICI Prudential Technology Fund (G)
Technology
-6.89%
6.35%
Franklin Infotech Fund (G)
Technology
-6.73%
-6.03%
Birla Sun Life New Millennium Fund (G)
Technology
-5.85%
-2.98%
Sundaram-Select Thematic Funds-CAPEX Opportunities Fund (G)
Infrastructure
-4.35%
8.94%
HSBC Progressive Themes Fund (G)
Speciality
-4.22%
22.72%

Disclaimer: 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 scheme information document including statement of additional information. 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 on the website.Please read our disclaimer in the website. Risk Factors: Mutual funds, like securities investments, are subject to market risks and there is no guarantee against loss in the Scheme or that the Scheme’s objectives will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting capital markets. Past performance of the Sponsor/the AMC/the Mutual Fund does not indicate the future performance of the Scheme. The name of the Scheme does not in any manner indicate the quality of the Scheme, its future prospects or returns. Please read the Statement of Additional Information and Scheme Information Document carefully before investing.



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