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Gold funds shine in February
March 17, 2011

We bring you an update on FEFI performance as well as the best and the worst performing funds on Fundsupermart.com.


Author : iFAST Research Team



Untitled Document

FEFI PERFORMANCE UPDATE

The market’s declining trend which began in December has also continued in February.  FEFI began February with 1927 points and closed the month at 1859 points losing 97 points, or down by 4.96% on a month-on-month (m-o-m) basis. On a Year–to-Date (YTD) basis FEFI has lost 14.27%. This month’s high and low values were reached in the first 10 days of the month; 1954 points, the month’s high was reached on 3 February 2011 while, the month’s low value  occurred on 9 February 2011 at 1847 points.

As seen in chart 1, FEFI has outperformed the BSE SENSEX in 2011 however this outperformance could not be sustained in February. In February, FEFI has given a negative return of 4.96% while SENSEX fell by 2.75% and on YTD basis, FEFI has given a negative return of 14.27% in comparison to -13.1% returns from SENSEX. 

MARKET UPDATE

All the equity indices on Bombay Stock Exchange lost value in February, except for the BSE FMCG Index. The BSE Real Estate Index dropped to the lowest at -11.09% and BSE FMCG Index gained 1.97% (m-o-m). 

Chart 1: Comparative performance of FEFI with SENSEX 


The SENSEX and NIFTY lost 2.75% and 3.14% respectively. Even broad based indices like BSE 100, BSE 200, BSE 500, CNX 100 and CNX 500 gave negative returns in the range of 3.23% and 4.01%. The BSE Midcap and Small Cap indices continued their downward slope in comparison to SENSEX with BSE Midcap Index falling by 7.21% and BSE Small cap Index falling by 7.79% in February.

Table 1: FEFI Index levels

FEFI
Year-to-date (%)
Month-to-date (%)
31 December 2010 2168.51 - -
31 January 2011 1956.11 -9.79% -9.79%
28 February 2011 1859.09 -14.27% -4.96%

TOP 5 FUNDS ON FUNDSUPERMART.COM

The mutual funds belonging to the overseas category have been the top performers for the equity segment in the month of February. The political crisis in the Middle East and North Africa has led to a rally in gold and crude oil prices. In February, gold gained 5.9% in the Gold Spot market and on YTD basis, gold has lost 0.7%. The WTI Crude also gained 2.85% this month and 4.40% on YTD basis. But, the returns from the global funds were slightly lower on account of the Indian Rupee appreciating by 1.38%.

AIG World Gold fund and DSP Blackrock World Gold funds are two global funds on our platform which invest in gold mining companies and not in gold commodity. The directions of the returns from these two funds tend to follow the performance of gold commodity though the magnitude of the returns from these funds can be different when compared to the performance of gold as a commodity.

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

  Category MTD YTD
AIG WORLD GOLD FUND Global 7.75% -1.87%
DSP BLACKROCK WORLD GOLD FUND Global 5.71% -4.45%
BSL COMMODITY EQUITIES FUND GLOBAL PRECIOUS METALS PLAN Global 4.87% -3.52%
DSP BLACKROCK WORLD ENERGY FUND Global 4.83% 9.99%
BSL COMMODITY EQUITIES FUND GLOBAL MULTI COMMODITY PLAN Global 3.36% 4.55%

BOTTOM 5 FUNDS ON FUNDSUPERMART.COM

Midcap and Small cap category funds have taken three spots in the bottom performing list. Midcap and Small cap indices have lost a lot more than the broad based equity indices with the loss of more than 7% in February alone.

Table 3: Bottom 5 Equity funds on our platform in February
  Category MTD YTD
JM EMERGING LEADERS FUND Midcap & Small Cap -9.42% -24.09%
HSBC PROGRESSIVE THEMES FUND Speciality -9.44% -22.08%
L&T GLOBAL ADVANTAGE FUND Multi Cap -9.57% -18.77%
JM SMALL & MIDCAP FUND Midcap & Small Cap -9.60% -21.58%
HSBC MIDCAP EQUITY FUND Midcap & Small Cap -14.10% -26.77%

HSBC Midcap Equity fund and JM Emerging Leaders funds were also in the bottom performing list in January. In January, the HSBC Midcap equity fund lost more than 14% and continued the trend in February by losing again over 14%. Similarly, the JM Emerging leaders fund lost more than 16% in January, while losing more than 9% in February.

Related Articles

Midcap Funds Lose in Free Fall January
Technology funds make a comeback in December
Overseas funds shine in November
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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