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FSM All-Equity Fund Index (FEFI) rises 83% in 2009
January 8, 2010

The Fundsupermart All-Equity Fund Index December 2009 Update


Author : iFAST Research Team



Untitled Document

FEFI Performance UPDate

If 2008 turned out to be an extraordinarily bad year for the stock markets, the exact opposite can be said about 2009. All the equity funds on Fundsupermart have delivered robust returns for investors. Except for four months (January, February, June and October), the month-on-month returns for remaining eight months of 2009 have been positive.

The year has ended well with equity funds outperforming in December. FEFI returns have superseded the returns from SENSEX and broad based indices such as BSE 500. The outperformance was mainly attributed to pick up in small and mid-cap stocks and other sectors like IT, Capital goods and Power, where funds have been increasing their exposure lately.

As at 31 December 2009, the FEFI has closed at 1831.56, up from 1000 points as at end of 2008 (when the index was incepted). Thus, the average returns of equity funds on the Fundsupermart.com have rocketed by 83.15% for 2009.

 


Table 1: FEFI Index levels

FEFI

Year-to-date (%)

Month-to-date (%)

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%

30 November 2009

1755.99

75.59%

5.78%

31 December 2009

1831.56

83.15%

4.3%

Table 2: Top 5 Equity funds on our platform in December 2009

 

Sector

YTD Returns

MTD returns

RELIANCE PHARMA FUND- GROWTH Pharmaceuticals 86.64% 12.16%
RELIANCE EQUITY OPPORTUNITIES FUND - GROWTH Diversified 70.26% 9.47%
UTI-MASTER VALUE FUND- GROWTH

Contra

94.91% 9.13%
RELIANCE MEDIA & ENTERTAINMENT FUND GROWTH PLAN- GROWTH Speciality 99.17% 9.12%
ICICI TECHNOLOGY FUND- GROWTH Technology 96.22% 8.93%

Majority of the sectoral funds have done well in December. Pharmaceuticals, Media and IT were the leading sectors in December, with the Reliance Pharma Fund delivering 12.16% in 1 month. The top performing funds for December have given at least 8% returns on a month-on-month basis.

 Table 3: Bottom 5 Equity funds on our platform in December 2009

 

Sector

YTD Returns

MTD returns

Kotak Lifestyle Fund - Growth Diversified 61.50% 0.32%
SUNDARAM FINANCIAL SERVICES OPP. REGULAR- GROWTH Banking 71.60% -0.44%
JM Financial Services Sector Fund - Growth Banking 7.56% -0.60%
ICICI Prudential Banking and Financial Services Fund - Retail - Growth Banking 77.59% -0.95%
Reliance Banking Fund - Growth Banking 82.89% -0.98%

The banking indices, the BSE Bankex Index and CNX Bank Nifty index lost 0.12% and 0.19% respectively during the month. Expectations of rate hike due to higher-than-expected inflation led to a decline in the banking funds. Inflation rose up as the food prices sub-index touched a 11 year high of 19.95%. In fact, the banking indices had lost close to 5% at one point but recovered as RBI and Ministry of Finance acknowledged that the spike in inflation was primarily due to higher food prices (the inflation in food prices may subside in the coming months as the winter crop stocks arrive in the market) and not because of excess liquidity in the system.

Related Articles:

Top Markets of 2009

FEFI rises again after a blip in October

FEFI Update - October

FSM All-Equity Fund Index (IN) Methodology

FSM(IN) FUND INDICES


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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