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Precious Metals, Media and Banking Funds are top performers of August
September 9, 2010

The FEFI Update for August 2010


Author : iFAST Research Team



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FEFI PERFORMANCE UPDATE

FEFI opened August with 1976.68 points and ended August gaining close to 50 points on a month-on-month basis, closing at 2026.32 points (up by 2.51% month-on-month) . FEFI showed an upward trend for most of August. FEFI rose to the month high of 2076.63 points on 23 August before losing 50 points to close the month at 2026.32 points.

In August, the SENSEX and NIFTY gained 0.58% and 0.65% respectively. Most of the broad indices like the BSE 100, BSE 200, BSE 500, CNX 100 and CNX 500 gave returns in the range of 0.74% to 1.39% in August. However, like in July, the BSE Midcap Index and BSE Small cap Index have gave better returns than the broad based indices. The BSE Midcap Index and BSE Small cap Index gave returns of 2.55% and 2.05% respectively. Considering the performance of the market indices and FEFI, we think that the equity fund managers have done a good job in managing the equity funds in August.

Chart 1: FEFI Performance for 2010


Table 1: FEFI Index levels

FEFI

Year-to-date (%)

Month-to-date (%)

31 December 2009 1831.56 - -
31 January 2010 1763.09 - -3.7%
28 February 2010 1745.48 -4.7% -1.0%
31 March 2010 1868.57 2.02% 7.05%
30 April 2010 1916.83 2.58% 4.66%
31 May 2010 1850.36 1.03% -3.47%
30 June 2010 1939.67 5.90% 4.83%
31 July 2010 1976.86 7.92% 1.91%
31 August 2010 2026.32 10.63% 2.51%

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

  Sector Month-To-Date Returns

Year-To-Date Returns

BSL COMMODITY EQUITIES FUND GLOBAL PRECIOUS METALS PLAN- GROWTH Overseas 8.77% 6.31%
SUNDARAM BNP PARIBAS SELECT THEMATIC FUNDS ENTERTAINMENT OPPORTUNITIES- GROWTH Speciality 7.61% 6.53%
SUNDARAM BNP PARIBAS FINANCIAL SERVICES OPPORTUNIES- GROWTH Banking 6.14% 27.23%
SUNDARAM BNP PARIBAS SELECT THEMATIC FUNDS PSU OPPORTUNITIES- GROWTH Speciality 6.04% -
BSL INDIA GENNEXT FUND- GROWTH Diversified 6.03% 23.91%

Overseas, Speciality, Banking and diversified funds topped the list for the equity segment in the month of August. Both of the media funds did well in August but only the Sundaram BNP Paribas Entertainment opportunity fund made it to the top 5 list.  The good performance was due to the run up in the media distribution stocks as the regulator set a deadline of December 31 2013, for complete migration from analogue to digital cable services.

The top performing fund from the equity segment was an overseas fund focusing on precious metals called Birla Sun Life Equities Fund – Global Precious Metals Plan – Growth. Last month this fund was the worst performing equity fund having lost 7.2% in July alone. However, the loss in July was more than made up in August as the fund delivered a good 8.77% return; this good performance is due to the run up in the prices of Gold & other precious metals in August. Gold in USD terms went up by 5.63% in August. Also the Rupee depreciated by 1.27% helping the performance of this fund.


Table 3: Bottom 5 Equity funds on our platform in July
  Sector MTD Returns

YTD

Returns
JM BASIC FUND- GROWTH Infrastructure -1.61% -9.91%
FRANKLIN ASIAN EQUITY- GROWTH Overseas -1.62% -1.86%
BSL INDIA OPPORTUNITIES FUND- GROWTH Diversified -1.90% 4.63%
UTI PHARMA & HEALTHCARE FUND- GROWTH Pharmaceuticals -2.67% 14.14%
MAGNUM SECTOR FUND UMBRELLA-PHARMA- GROWTH Pharmaceuticals -2.68% 9.08%

The bottom performing funds from the equity segment in the month of August comprised primarily of pharma, diversified and overseas funds.

As the pharma sector was one of the best performing sectors in 2010, the pharma stocks and thus the pharma funds rallied in 2010. However, since July Pharma stocks have witnessed profit booking thereby leading to underperformance of Pharma funds. The BSE Healthcare Index fell by 0.95% in August.

Related Articles

Banking funds shine in July
FMCG, Media and MNC Funds rule the roost in June
Fund managers beat markets again in May 2010
Mutual Funds outperform equity markets in April
FEFI Closes FY 2009-2010 with a Bang!
Small and Mid-cap funds underperform FEFI in February 2010
FEFI falls 3.7% in January 2010
FSM All-Equity Fund Index (FEFI) rises 83% in 2009
FEFI rises again after a blip in October
FEFI Update - October
FEFI index methodology.

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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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