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Gold Funds Outplay in August
September 14, 2011

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

Author : iFAST Research Team

 Gold Funds Outplay in August


FEFI continues the downward trend for the second month in a row. In the year 2011, this is the second month after January where FEFI lost the maximum. FEFI began the month with 2000 points and closed the month at 1812 points losing 182 points, or down by 9.12% on a month-on-month (m-o-m) basis. On a Year–to-Date (YTD) basis, FEFI has lost 16.42%. During the month, FEFI reached a low of 1768 points.

As seen in Chart 1, both FEFI and Sensex have delivered negative Month-to-Date (MTD) and YTD returns. On a month-on-month basis Sensex lost 8.36% which is slightly lower than FEFI which lost close to 9.12%; however, on YTD basis, Sensex underperformed FEFI by losing 18.69% where as FEFI lost around 16.42% during the same time period.


The month of August did not seem to favour equity markets with all the indices on Bombay Stock Exchange delivering negative returns on MTD basis. Among all the indices, BSE FMCG Index lost the least at 3.51%; BSE Real Estate took the maximum hit by losing around 14.78% during the month.


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

In case of broader indices like Sensex and Nifty; the trend reversed from the last month, with both these indices losing close to 8.36% and 8.77% and outperforming BSE Midcap Index and BSE Small Cap Index; which delivered negative returns close to 9.28% and 14.14%, 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
29 July 2011 1994.17 -8.04 -0.56
30 August 2011 1812.38 -16.42 -9.12


Out of the top 5 equity funds on our platform, 4 belong to the global category; the top three commodity oriented funds dazzled in the month of August with positive returns. With most domestic and global equity markets witnessing a downfall this month, gold played its part of the safe haven asset, gaining close to 12% on month-on-month basis.

Both DSP Black Rock World Gold Fund and Birla Sun Life Commodity Equities Fund - Global Precious Metals Plan appeared among the top 5 funds for second consecutive month.

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

DSP Black Rock World Gold Fund
AIG World Gold Fund
Birla Sun Life Commodity Equities Fund- Global Precious Metals Plan
DWS Global Agribusiness Offshore Fund
IDFC Asset Allocation Fund of Fund- Aggressive Plan
Asset Allocation


The bottom performing funds for the month is not concentrated in a particular category but came from various categories like Infrastructure, Speciality, Midcap & Small cap and Technology. ICICI Technology Fund was the bottom performer which lost the maximum at 14.43% for the month of August.

On YTD basis, Reliance Infrastructure Fund lost the maximum at 33.45%.

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

Reliance Infrastructure Fund
Sundaram- Select Thematic Funds- Entertainment Opportunities Fund
HSBC Progressive Themes Fund
HSBC Midcap Equity Fund
Midcap & Small Cap
ICICI Prudential Technology Fund

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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