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Top Performing Funds for 1Q (January - March) 2010
April 16, 2010

Indian markets have given positive performance in the first quarter of 2010. Here, we will take a closer look at the top and bottom performers during this period.


Author : iFAST Research Team



Untitled Document

Table 1: Top 10 Equity Funds
Fund Name Performance Sector
RELIANCE PHARMA FUND- GROWTH 10.9% Pharmaceuticals
RELIGARE BANKING FUND- GROWTH 9.9% Banking
AXIS TAX SAVER- GROWTH 8.4% ELSS
BSL MNC FUND- GROWTH 8.2% Speciality
ICICI PRUDENTIAL EMERGING STAR - GROWTH 7.8% Mid-cap and Small-cap
TATA DIVIDEND YIELD FUND- GROWTH 7.3% Dividend Yield
ICICI PRUDENTIAL DISCOVERY FUND - GROWTH 6.9% Contra / Value
FT INDIA GROWTH 6.7% Diversified
UTI BANKING SECTOR FUND- GROWTH 6.6% Banking
SBI EMERGING BUSINESS FUND- GROWTH 6.0% Speciality
Source: iFAST Compilations

The Pharmaceutical and banking sectors did well in the first quarter of 2010. In the first quarter of 2010, the BSE Healthcare Index rose by 6.18% where as the BSE BANKEX Index rose by 6.32%. Particularly, the Reliance Pharma fund has done very well so far and has given the highest Year-Till-Date (YTD) returns among all equity funds on our platform. The Reliance Pharma Fund has also appeared in our monthly top 5 performing list four times since October 2009.

The top 10 list this time has funds from all the major categories of equity funds indicating that no particular sector / category of funds have outperformed the others. This also indicates good fund management by some fund managers.

Table 2: Top 10 Debt Funds
Fund Name Performance Sector
HDFC MULTIPLE YIELD FUND- GROWTH 3.4% MIP
MAGNUM MONTHLY INCOME PLAN FLOATER- GROWTH 2.8% MIP
HDFC MULTIPLE YIELD FUND PLAN 2005- GROWTH 2.8% MIP
CANARA ROBECO MONTHLY INCOME- GROWTH 2.6% MIP
IDFC SUPER SAVER INCOME FUND - MEDIUM TERM - A -GROWTH 2.1% Income
ICICI PRUDENTIAL FLOATING RATE PLAN B LONG TERM- GROWTH 1.9% Floating Rate
SBI MAGNUM MONTHLY INCOME PLAN- GROWTH 1.9% MIP
BSL DYNAMIC BOND FUND RETAIL - GROWTH 1.9% Income
ICICI PRUDENTIAL INCOME MULTIPLIER FUND - GROWTH 1.9% Income
FT INDIA MONTHLY INCOME PLAN B- GROWTH 1.8% MIP
Source: iFAST Compilations

Funds from the Monthly Income Plan (MIP) and Income category have done well in the first quarter of 2010. Six out of the top 10 debt funds are MIPs. The main reason why MIPs have done well in the first quarter is that the equity markets have done well in the first quarter as there were ample opportunities for stock selection since the market corrected slightly in January and February. But, the market has regained what it had lost and ended the quarter with a positive gain of 1.43% (for SENSEX).

Due to exposure to equity, the MIP funds have also done comparatively better than debt funds. The returns from the debt portfolio are limited as the yields have risen since the beginning of the year. The income funds (in the Table 2) have gained because they moved early into the short-term securities as they anticipated a rate hike.

Table 3: Bottom 10 Equity Funds
Fund Name Performance Sector
SUNDARAM BNP PARIBAS TAXSAVER OPEN ENDED- GROWTH -2.7% ELSS
SUNDARAM SMILE- GROWTH -2.8% Mid-cap and Small-cap
RELIANCE NATURAL RESOURCES FUND- GROWTH -3.1% Specialty
BSL INTERNATIONAL EQUITY FUND PLAN A -GROWTH -3.6% Overseas
JM MULTI STRATEGY FUND- GROWTH -4.9% Diversified
JM MID CAP FUND- GROWTH -5.1% Mid-cap and Small-cap
JM SMALL & MIDCAP FUND REGULAR PLAN- GROWTH -5.3% Mid-cap and Small-cap
JM EMERGING LEADERS FUND - GROWTH -5.6% Diversified
JM BASIC FUND- DIVIDEND REINVESTMENT -6.1% Specialty
BSL COMMODITY EQUITIES FUND GLOBAL PRECIOUS METALS- GROWTH -6.6% Overseas
Source: iFAST Compilations

Funds mostly from the Mid-cap, Small-cap and Overseas sectors have figured in the bottom 10 list. The BSE Midcap Index rose by 1.32% in this quarter. Also four funds from JM Financial Mutual Fund figure in the bottom 10 list. This can be an indication of poor stock selection by the fund managers.

In case of overseas funds, the 3.4% appreciation in the Rupee has been the major cause for the funds to deliver negative performance.

Table 4: Bottom 10 Debt Funds
Fund Name Performance Sector
PRINCIPAL MONTHLY INCOME PLAN PLUS- GROWTH ACCUMULATION 0.6% MIP
BSL INCOME FUND- GROWTH 0.5% Income
DSP BLACKROCK SAVINGS MANAGER FUND MODERATE- GROWTH 0.4% Income
CANARA ROBECO INCOME- GROWTH 0.4% Income
CANARA ROBECO INCOME- GROWTH 0.4% Income
DSP BLACKROCK SAVINGS MANAGER FUND AGGRESSIVE- GROWTH 0.1% Income
TATA INCOME FUND- GROWTH 0.0% Income
IDFC DYNAMIC BOND FUND - A -GROWTH 0.0% Income
TATA MONTHLY INCOME FUND- GROWTH -0.1% MIP
ICICI PRUDENTIAL INCOME PLAN - GROWTH -0.3% Income
Source: iFAST Compilations

Nine out of the bottom ten debt funds are from the Income category but only two funds have delivered slightly negative performance in the first quarter. The main reason for dismal performance of the debt income funds is that the yields have increased especially, in corporate debt securities that will mature in the next three years.  The major caise for the yeilds to increase is  high level of inflation and the RBI actions of  increasing the Cash Reserve Ratio(CRR) in January and  Repo and Reverse Repo rates in February

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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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