We bring you an update on the Fundsupermart Equity Fund Index (FEFI) performance as well as the best and the worst performing funds on Fundsupermart.com
Author : iFAST Research Team
Global & Technology Funds Excel in December
FEFI PERFORMANCE UPDATE
FEFI continued its losing streak in December also. FEFI began the month with 1761 points and closed the month at 1648 points losing 113 points, or down by 5.14% on a month-on-month basis. On a Year-to- Date (YTD) basis, FEFI has lost around 23.97%. FEFI witnessed the highest level during the month on 7 December at 1793 points.
As seen in chart 1, despite underperforming in the current month, FEFI has managed to outperform Sensex on a Year-to-Date basis. In December, FEFI delivered returns of -5.14% while SENSEX ended the month at -4.15%. On YTD basis, FEFI delivered negative returns of 23.97% in comparison to negative returns of close to 24.64% delivered by SENSEX.
All the equity indices on Bombay Stock Exchange gave returns in the range of 4.60% to -16.55%. The BSE Midcap and Smallcap indices underperformed the broader indices like Sensex and S&P CNX Nifty; the BSE Midcap and Smallcap indices gave a return of -8.75% and -8.97% respectively whereas Sensex and S&P CNX Nifty gave returns of -4.15% and -4.30% respectively.
Chart 1: Comparative performance of
FEFI with SENSEX since 31 December 2010
BSE IT Index delivered the best returns of 4.60%; except BSE IT and Technology Index all other BSE Sectoral Indices closed in the negative territory in December. Other broad based indices like BSE 100, BSE 200, BSE 500, CNX 100 and CNX 500 also closed in red.
Table 1: FEFI Index levels
31 December 2010
31 January 2011
28 February 2011
31 March 2011
29 April 2011
31 May 2011
30 June 2011
29 July 2011
30 August 2011
30 September 2011
31 October 2011
30 November 2011
30 December 2011
TOP 5 FUNDS ON
Global and Technology funds have been among the top performers in the month of December; in fact, Global Funds have been the top performing funds for the last three consecutive months. The Indian equity market is underperforming continuously since October against the developed markets as well as major Asian counterparts. It was amongst the bottom performing markets in 2011. The depreciation of the Rupee against Dollar has improved the net realization of Indian IT companies. Rupee has depreciated by close to 8% in third quarter of FY 2012 which will support the IT companies in posting better numbers even at slowdown in their major business generating economies. The underperformance of Indian Equity markets compared to major global markets in December has favored the performance of Global Funds like the Birla Sun Life International Equity Fund and ING Global Real Assets Fund.
Birla Sun Life International Equity Fund was the top performer in the month of December with 4.59% returns
Table 2: Top 5 Equity Funds on Fundsupermart.com in December 2011
Birla Sun Life International Equity Fund A (G)
Franklin Infotech Fund (G)
ING Global Real Estate Fund (G)
Mirae Asset China Advantage Fund (G)
Principal Global Opportunities Fund (G)
BOTTOM 5 FUNDS ON FUNDSUPERMART.COM
The bottom five slots were shared by Thematic and Mid & Smallcap-oriented Diversified Funds. Due to the ongoing crisis, money is flowing to safer securities and exiting riskier markets like emerging countries. The underperformance of Indian equity market has impacted the performance of Indian equity funds as well. Gold fell by approximately 10% in December (Dollar terms) which may be reason for underperformance of funds investing in gold related companies.
AIG World Gold Fund was the bottom performer in the month of December delivering negative returns close to 10.83% on a month-on-month basis.
Table 3: Bottom 5 Equity Funds on Fundsupermart.com in December 2011
AIG World Gold Fund (G)
HSBC Midcap Equity Fund (G)
Midcap & Smallcap
JM Core 11 Fund (G)
Sundaram Select Thematic Fund - Entertainment Opportunity Fund
HSBC Smallcap Fund (G)
Midcap & Smallcap
The Research Team is part of iFAST Financial India Pvt Ltd
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