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Pharma funds top performers for October
November 9, 2010

The FEFI Update for October 2010


Author : iFAST Research Team



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Market Update

In October, both the BSE SENSEX and NIFTY lost 0.18% and 0.20% respectively. However, most of the broad indices like the BSE 100, BSE 200, BSE 500, CNX 100 and CNX 500 have given positive returns in the range of 0.12% to 0.97% for October. Unlike September, the BSE Small cap and BSE Midcap indices have given higher returns than the broad based indices. The BSE Midcap Index and BSE Small cap Index have given a return of 2.70% and 3.43% respectively in October.

FEFI PERFORMANCE UPDATE

FEFI opened October with 2216.1 points and closed the month at 2204.5 points gaining about 23 points, or up by 1.07% on a month-on-month basis. FEFI has shown an upward trend in October as the equity funds on the Fundsupermart.com platform have clearly outperformed the BSE SENSEX in majority in the recent months. FEFI rose to the month high of 2251.12 points on 13 October before losing close to 47 points to close the month at 2204.49 points.

FII CONTINUE TO RUSH IN

Foreign Institutional Investors (FIIs) continued to pump in money into the Indian stocks making net investment of about US$ 6.42 billion (INR 28,563 Crore) into Indian equities following a US$ 5.43 billion (INR 24,978 Crore) net investment made in the previous month. 

 

Chart 1: Comparative performance of FEFI with SENSEX for 2010


During this calendar year, FIIs have pumped in close to US$ 24.79 billion in the Indian Equity market till the end of October 2010. Out of this US$ 24.79 billion, around 48% (US$ 11.85 billion) has come in last two months. In calendar year 2009, FIIs made a net investment of US$ 17.5 billion in Indian equities.

On the other hand, Domestic mutual funds continued to be net sellers in the month of October 2010 to the tune of INR 5800 Crore. Except for the month of May, for all other months in last one year, Mutual Funds have been net sellers. In the calendar year 2010, domestic funds have been net sellers to the tune of INR 29,409.4 Crore till the end of October 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%
30 September 2010 2181.22 19.09% 7.64%
31 October 2010 2204.49 20.36% 1.07%

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

  Sector Month-To-Date Returns

Year-To-Date Returns

MAGNUM SECTOR FUND UMBRELLA-PHARMA Pharmaceuticals 6.85% 24.21%
RELIANCE BANKING FUND Banking 6.22% 58.63%
UTI PHARMA & HEALTHCARE FUND Pharmaceuticals 5.38% 29.59%
JM HOUSING, INFRASTRUCTURE & FINANCIAL SERVICES FUND Speciality 5.08% 14.84%
BSL COMMODITY EQUITIES FUND GLOBAL AGRI PLAN Overseas 4.91% 7.63%

Pharma funds have topped the list for the equity segment in the month of October. Year-to- Date (YTD), the pharma sector has been one of the better performing sectors. YTD, the BSE Healthcare index has given 28.12% returns. The top performing fund from the equity segment was Magnum Sector Fund Umbrella - Pharma. The fund delivered a Month-to-Date (MTD) 6.85% return in October; however, none of the top performing pharma funds were able to beat the performance of BSE Healthcare index, which gave 7.30% returns in October.

Reliance Banking Fund is our Recommended Banking sector fund and on YTD basis this fund has given 58.63%, the highest return of any equity fund in India.

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

Year To Date

Returns
SUNDARAM SELECT THEMATIC FUNDS ENTERTAINMENT OPPORTUNITIES Speciality 2.45% 7.45%
DSP BLACKROCK TECHNOLOGY.COM FUND IT 2.49% 10.75%
RELIANCE INFRASTRASTRUCTURE FUND Infrastructure 2.92% 3.40%
RELIANCE MEDIA & ENTERTAINMENT FUND Speciality 2.95% 16.54%
JM TELECOM SECTOR FUND Speciality 6.70% 3.95%

The bottom performing funds from the equity segment for October totally comprised of sectoral funds. The Indian mutual fund industry has only two funds focusing on media and entertainment and both these funds have also performed negatively in October.

The bottom performing fund for October was JM Telecom Fund with MTD -6.70% returns in October. JM Telecom fund is India’s only telecom fund. The major reason for the poor performance of telecom stocks were the disappointing quarterly results of few telecom companies.

Related Articles

Banking funds steal the show in September
Precious Metals, Media and Banking Funds are top performers of August
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.



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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