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Overseas funds shine in November
December 10, 2010

The FEFI Update for November 2010


Author : iFAST Research Team



Untitled Document


Market Update

In November, except for sectoral indices like BSE Auto, BSE Healthcare and BSE Technology all the other indices have given negative returns. Both the BSE SENSEX and NIFTY lost -2.55% and 2.58% respectively. Even, most of the broad indices like the BSE 100, BSE 200, BSE 500, CNX 100 and CNX 500 have given negative returns in the range of -3.38% to -3.92% for November. The BSE Small cap and BSE Midcap indices have delivered less than the broad based indices and have given a return of -8.05% and -6.49% respectively in November.

FEFI PERFORMANCE UPDATE

FEFI opened November with 2239.7 points and closed the month at 2122.8 points losing close to 82 points, or down by 3.71% on a month-on-month basis. FEFI has shown an upward trend in the first 10 days and hit the month high of 2289 points on 10 November 2010, but losing 166 points to close the month at 2239.7 points. As seen in chart 1, equity funds on the Fundsupermart.com platform have clearly outperformed the BSE SENSEX, however in November they underperformed SENSEX by over 1%. FEFI lost 3.71% in November while SENSEX lost 2.55% in the same period.

FII CONTINUE TO RUSH IN

Foreign Institutional Investors (FIIs) continued to pump in money into Indian stocks making a net 
Investment of about US$ 4.12 billion (INR 18,293 Crore) into Indian equities following a US$ 6.42 billion (INR 28,563 Crore) net investment made in the previous month. During this calendar year, FIIs have pumped in close to US$ 28.91 billion in the Indian Equity market till the end of November 2010. Out of this US$ 28.91 billion around 55% (US$ 15.97 billion) has come in last two months. In calendar year 2009, FIIs made a net investment of US$ 17.5 billion in Indian equities.

 

Chart 1: Comparative performance of FEFI with SENSEX for 2010


On the other hand, Domestic mutual funds continued to be net sellers in the month of November 2010. However, the mutual funds sold only INR 100 crores in comparison to the INR 5800 Crore redemption last month. 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 29,509.4 Crore till the end of November 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%
30 November 2010 2122.76 15.89% -3.71%

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

Sector Month To Date Returns Year To Date Retunrs
BSL COMMODITY EQUITIES FUND GLOBAL PRECIOUS METALS PLAN Overseas 7.50% 19.67%
BSL COMMODITY EQUITIES FUND GLOBAL MULTI COMMODITY PLAN Overseas 6.22% 7.80%
UTI PHARMA & HEALTHCARE FUND Pharmaceuticals 3.67% 27.25%
ICICI PRUDENTIAL TECHNOLOGY FUND Technology 3.34% 31.77%
BSL INTERNATIONAL EQUITY FUND PLAN A Overseas 2.90% 1.68%

Overseas equity fund have topped the list for the equity segment in the month of November.  Performance of overseas equity funds were boosted by the Rupee depreciating by 3.27% in November.

The top performing fund from the equity segment in November was BSL COMMODITY EQUITIES FUND GLOBAL PRECIOUS METALS PLAN. The fund delivered 7.50% return during the month primarily due to the run up in prices of precious metal commodities over renewed fears of Ireland debt.

BSE Healthcare and BSE Technology are few sectoral indices that have given positive performance in November and hence we have a Pharma and Technology fund in the top 5 performing list. Both the sectoral funds in the top 5 list have outperformed the respective sectoral indices. The BSE Healthcare index and BSE Technology index gave 2.33% and 1.69% returns in November


Table 3: Bottom 5 Equity funds on our platform in November
Sector
 Month To Date Returns Year To Date Returns
RELIANCE INFRASTRASTRUCTURE FUND Infrastructure -9.49% -0.064
HSBC PROGRESSIVE THEMES FUND Specialty -10.20% 4.70%
HSBC MIDCAP EQUITY FUND Midcap & Small Cap -11.19% 11.14%
UTI MASTERSHARE UNIT SCHEME Diversified -11.33% 3.99%
JM HOUSING, INFRASTRUCTURE & FINANCIAL SERVICES FUND Specialty -11.79% 1.30%

On the bottom performing funds side, no single category of funds has topped the bottom performing list.

The bottom performing fund for November was JM HOUSING, INFRASTRUCTURE & FINANCIAL SERVICES FUND with -11.79% returns in November. Real estate was the most negatively performing sector in November as the BSE Real Estate Index fell by 19.52% on the back of ‘bribe for loan’ scam between a few financial companies and Real estate companies.

Related Articles

Pharma funds top performers for October
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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