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Global & Technology Funds Excel in December
January 16, 2012

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. 

MARKET UPDATE

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

FEFI Performance

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

  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
30 September 2011 1808.69 -16.59 -0.20
31 October 2011 1889.15 -12.88 4.45
30 November 2011 1737.95 -19.86 -8.00
30 December 2011 1648.62 -23.97 -5.14

 

TOP 5 FUNDS ON FUNDSUPERMART.COM

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

 
Category
MTD
YTD
Birla Sun Life International Equity Fund A (G)
Global
4.59%
7.86%
Franklin Infotech Fund (G)
Technology
3.36%
-15.50%
ING Global Real Estate Fund (G)
Global
2.61%
9.33%
Mirae Asset China Advantage Fund (G)
Global
2.31%
-11.89%
Principal Global Opportunities Fund (G)
Global
2.08%
-2.60%

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

 
Category
MTD
YTD
AIG World Gold Fund (G)
Global
-10.83%
-4.07%
HSBC Midcap Equity Fund (G)
Midcap & Smallcap
-10.64%
-43.47%
JM Core 11 Fund (G)
Multicap
-10.46%
-39.92%
Sundaram Select Thematic Fund - Entertainment Opportunity Fund
Speciality
-10.36%
-32.05%
HSBC Smallcap Fund (G)
Midcap & Smallcap
-9.85%
-46.64%

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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