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FEFI Update - October
November 13, 2009

FEFI performance update for the month of October. The fund managers have done a better job in october by losing less than the markets


Author : iFAST Research Team



Untitled Document

FEFI Performance UPDate

The Indian equity market has moved into negative territory in terms of performance for the month ending October 2009. Unlike the past couple of months of 2009, the FEFI lost 3.18% in October.. As SENSEX has lost 7.18% in October, the performance of FEFI has been better in comparison to the SENSEX. Even the broader index like the CNX 500 has fallen by 6.45%. The fall in global markets and the hawkish outlook on inflation by Reserve Bank of India were primary reasons for the negative performance.
 
As at 30 October 2009, the FEFI has closed at 1659.99 lower than 1714.54 as at end of September and up from the 1000 points as at end of 2008. Thus, the average returns of equity funds on the Fundsupermart.com has rocketed by 65.9% in the first ten months of the year, a strong recovery in a scenario touted to be the worst global recession since the Great Depression.


 

Table 1: FEFI Index levels

FEFI

Year-to-date (YTD) (%)

Month-to-date (MTD) (%)

31 December 2008

1,000

-

-

31 January 2009

949.19

-5.08%

-5.08%

27 February 2009

908.17

-9.18%

-4.32%

31 March 2009

973.82

-2.62%

7.23%

30 April 2009

1,106.79

10.68%

13.65%

31 May 2009

1,439.46

43.95%

30.06%

30 June 2009

1,427.75

42.77%

-0.81%

31 July 2009

1550.12

55.01%

8.57%

31 August 2009

1600.99

60.10%

3.28%

30 September 2009

1714.54

71.45%

7.09%

31 October 2009

1659.99

66.00%

-3.18%

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

 

Sector

YTD Returns

MTD returns

ICICI Prudential FMCG Fund – Growth

FMCG

56.10%

6.18%

Birla Sun Life Commodity Equities Fund - Global Multi Commodities - Retail - Growth

Global

20.15

2.36%

Birla Sun Life MNC Fund – Growth

Speciality

75.94%

1.15%

Reliance Pharma Fund – Growth

Pharma

78.54%

-0.09%

Tata Dividend Yield Fund – Growth

Speciality

73.34%

-0.32%

 Mostly funds from the defensive sectors like FMCG and Pharmaceuticals have performed well in the month of October as the markets have turned weak and the investors have shifted their focus to defensive sectors from high-beta sectors.

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

 

Sector

YTD Returns

MTD returns

Reliance Equity Advantage Fund - Retail - Growth

Diversified

57.83%

-8.25%

Birla Sun Life New Millennium - Growth

Specialty

60.47%

-8.25%

DBS Chola Multi Cap Fund - Growth

Diversified

56.29%

-8.61%

SBI Magnum Midcap Fund - Growth

Diversified

77.01%

-9.59%

JM Telecom Sector Fund - Growth

Telecom

13.79%

-24.49%

Equity diversified funds form a major part of the bottom 5 equity funds and some have declined by a larger percentage than the fall in the SENSEX or CNX 500 index. Telecom stocks have seen a huge sell-off, owing to the regulator considering mandatory introduction of per second billing plans. In fact, players which have not been adopting the per second billing plans have been losing some market share to those which have pro-actively introduced the new per second billing plans to customers.


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.

 


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