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Global Funds Decline in June
July 12, 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



 Global Funds Decline in June

FEFI PERFORMANCE UPDATE

FEFI turned positive after witnessing a downfall in the month of May.  FEFI gained 12 points or 0.62% on a Month to Date (MTD) basis, however; on a Year to Date (YTD) basis it still continues to show negative performance and has lost 7.52%. FEFI began the month with 1993 points and closed the month at 2005 points which was the highest level witnessed during the month. The month’s low value was reached on 22 June 2011 at 1908 points.

As seen in Chart 1, Sensex has outperformed FEFI in the month of June. After outperforming Sensex for two consecutive months, FEFI made way for Sensex which delivered a Month to Date (MTD) return of 1.85% in comparison to FEFI which rose by 0.62% in June. However, on a Year to Date (YTD) basis, both Sensex and FEFI have delivered negative return of 8.11% and 7.52%, respectively.

MARKET UPDATE

Most of the equity indices on Bombay Stock Exchange have given positive returns with BSE Capital Goods Index delivering the highest returns of around 6.21%. BSE Real Estate Index was the bottom performer; the index lost the maximum at around 7.26%.

Chart 1: Comparative performance of FEFI with SENSEX since 31 December 2010

BSE FMCG Index which was the top performer last month is only second best to the top performing index this month, it delivered around 4.85% in June.The broader indices like BSE Sensex and S&P CNX Nifty delivered positive returns close to 1.85% and 1.57%, respectively. Both these indices managed to outperform BSE Midcap Index as well BSE Small Cap Index which delivered negative returns of around 0.81% and 0.96% respectively.

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
31 March 2011
2005.88
-7.50
7.90
29 April 2011
2038.47
-6.00
1.62
31 May 2011
1992.96
-8.10
-2.23
30 June 2011
2005.40
-7.52
0.62

 

 

 

 

 

TOP 5 FUNDS ON FUNDSUPERMART.COM

Funds belonging to FMCG category have been among the top performers in the month of June. The FMCG funds occupy two slots out of the top 5 funds on our platform. BSE FMCG Index gaining higher returns compared to other indices favored the performance of these FMCG oriented funds i.e. ICICI Prudential FMCG Fund and Franklin FMCG Fund in June. Also, the index witnessed its highest level since inception on 30 June 2011 at 4045.42. Fall in input prices was one of the key contributors to the positive performance of this sector.  ICICI Prudential FMCG Fund which was the top performer for the month gave a return of 7.38%.

Table 2: Top 5 equity funds on our platform in June 2011

 
Category
MTD
YTD
ICICI Prudential FMCG Fund
FMCG
7.38%
12.80%
Magnum Sector Funds Umbrella- Emerging Businesses Fund
Mid Cap
5.14%
-1.42%
Birla Sun Life India GenNext Fund
Speciality
4.98%
0.74%
Birla Sun Life Buy India Fund
Speciality
4.67%
-6.90%
Franklin FMCG Fund
FMCG
4.21%
7.38%

BOTTOM 5 FUNDS ON FUNDSUPERMART.COM

Global Funds were the bottom performing funds in the month of June. After March this is the second time when all the 5 slots have been occupied by Global Funds. Out of the bottom 5 global funds, 4 of them are commodity oriented; precious metal like Gold lost 2.5% in the month of June which was a negative in this direction.

Birla Sun Life Commodity Equities Fund -Global Precious Metals Plan lost the maximum at 6.90%.

Table 3: Bottom 5 Equity funds on our platform in June 2011

 
Category
MTD
YTD
Birla Sun Life Commodity Equities Fund- Global Multi Commodity Plan
Global
-4.90%
-8.24%
AIG World Gold Fund
Global
-4.98%
-5.85%
JPMorgan JF Greater China Equity Off-Shore Fund
Global
-5.48%
-0.27%
DSP Black Rock World Gold Fund
Global
-6.60%
-10.85%
Birla Sun Life Commodity Equities Fund- Global Precious Metals Plan
Global
-6.90%
-14.20%

Disclaimer: 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 scheme information document including statement of additional information. 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 on the website.Please read our disclaimer in the website. Risk Factors: Mutual funds, like securities investments, are subject to market risks and there is no guarantee against loss in the Scheme or that the Scheme’s objectives will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting capital markets. Past performance of the Sponsor/the AMC/the Mutual Fund does not indicate the future performance of the Scheme. The name of the Scheme does not in any manner indicate the quality of the Scheme, its future prospects or returns. Please read the Statement of Additional Information and Scheme Information Document carefully before investing.



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