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
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
31 December 2011
31 January 2012
29 February 2012
30 March 2012
30 April 2012
31 May 2012
29 June 2012
31 July 2012
TOP 5 FUNDS ON
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
Birla Sun Life Commodity Equity Fund-Global Multi Commodity Fund (G)
Birla Sun Life Commodity Equity Fund-Global Agribusiness Fund (G)
SBI Magnum Pharma Fund (G)
JPMorgan JF ASEAN Equity Off-shore Fund (G)
HSBC Brazil Fund (G)
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
ICICI Prudential Technology Fund (G)
Franklin Infotech Fund (G)
Birla Sun Life New Millennium Fund (G)
Sundaram-Select Thematic Funds-CAPEX Opportunities Fund (G)
HSBC Progressive Themes Fund (G)
The Research Team is part of iFAST Financial India Pvt Ltd
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