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Tuesday, June 30, 2009

Most of the fund categories surge in the week ended 26 June 2009

Return of IT, mid cap fund rises while income fund fell

Most of the mutual fund categories have registered positive returns as major equity benchmark indices have surged in the week ended 26 June 2009. Returns of IT, mid cap funds, banking funds, ELSS funds and equity diversified funds advanced in the week ended 26 June 2009. However, income funds fell during the week.

Sensex shed 242.75 points or 1.67% to 14764.64 while the S&P CNX Nifty rose 61.90 points or 1.43%, to 4375.5 in the week ended 26 June 2009.

Over the week, MFs were net buyers of equities worth Rs 1653.30 crore whereas net sellers of debt papers of Rs 504.90 crore. FIIs sold equities net worth Rs 2520.80 crore. Foreign Institutional Investors (FIIs) had pulled out money from the markets over the week. Their net buying of debt securities increased to Rs 1888.40 crore in the week ended 26 June 2009.

Equity diversified funds

Equity-diversified funds' category average rose 2.25% outperforming the Sensex that gained 1.67% in the week ended 26 June 2009. Returns of Escorts Growth Plan grew the most that posted returns of 7.55%. JM Contra Fund, JM Basic Fund, and JM Emerging Leaders Fund posted returns of 5.45%, 5.44%, and 5.33%, respectively. Returns of only 3 out of 199 funds fell over a week ended 26 June 2009. Sahara R.E.A.L Fund fell 3.81%. Kotak MNC and Tata Indo-Global Infrastructure Fund fell 0.30% and 0.24%, respectively.

ELSS Funds

NAVs of the ELSS funds category grew 2.32% in the week ended 26 June 2009. The ELSS funds' category average outperformed the Sensex that inched up 1.67%. Escorts Tax Plan increased by 4.67%. Tata Infrastructure Tax Saving Fund and JM Equity Tax Saver Fund - Series I grew 4.20% and 3.61%, respectively. Religare Tax Plan scaled up by 3.21%. Only 1 fund out of 47 funds fell over the week. SBI Tax Advantage Fund - Series I plunged by 0.11%.

Index Funds

All 20 index funds posted positive returns over the week. NAVs of the index funds' category scaled up 1.39% underperforming both the Sensex and the Nifty in the week ended 26 June 2009. Among the Index funds, LICMF Index Fund - Sensex Advantage Plan has topped among others by posting returns of 2.16%. The returns of HDFC Index Fund-Sensex Plus Plan grew 2.06%. Returns of Benchmark S&P CNX 500 Fund and Franklin India Index Fund-BSE Sensex Plan increased by 1.72%and 1.69%, respectively.

Pharma Funds

The average returns of pharma funds increased by 1.87% outperforming the BSE Healthcare index that fell 0.70% for week ended 26 June 2009. Returns of Franklin Pharma Fund grew the most by 3.68%. Returns of Reliance Pharma Fund and Magnum SFU - Pharma Fund scaled up by 2.74% and 1.35%, respectively. One out of 4 pharma funds failed to post positive returns in the week. UTI-Pharma & Healthcare Fund fell 0.27% over the week ended 26 June 2009.

FMCG Funds

FMCG funds grew 1.96% outperforming the BSE FMCG Index that advanced by 1.00% over the week ended 26 June 2009. Magnum SFU - FMCG Fund increased by 2.54%. Returns of Franklin FMCG Fund and ICICI Pru FMCG Fund gained 2.18% and 1.16%, respectively.

Mid Cap funds

The Net asset value of the Mid Cap fund category advanced by 3.24% underperforming BSE MidCap and CNX MidCap that rose 4.28% and 3.82%, respectively in the week ended 26 June 2009. All 27 mid cap funds have gave positive returns over the week ended 26 June 2009. Kotak Midcap increased by 5.74%. Birla Sun Life Midcap Fund rose 4.55%. HSBC Midcap Equity Fund increased by 4.50%. Sahara Midcap Fund and ICICI Pru Discovery Fund increased by 4.00% and 3.92%, respectively.

Banking funds

The net asset value of the banking funds grew 3.13% outperforming BSE Bankex that increased by 2.51%. JM Financial Services Sector Fund topped by giving returns of 4.93%. Sahara Banking & Financial Services Fund gained 3.27%. UTI-Banking Sector Fund grew 3.08%. All 7 funds rose over the week.

IT funds

NAV of six IT funds moved up by 3.28% outperforming the BSE Infotech index which gained 3.01% while underperforming the CNX IT that increased by 3.31% Magnum SFU - Infotech Fund increased by 4.28%. ICICI Pru Technology Fund and Franklin Infotech Fund recorded negative returns of 3.69% and 3.53%, respectively. Returns of DSP BR Technology.com and Kotak Tech went up by 3.26% and 2.48%, respectively over the week ended 26 June 2009.

Gold ETFs

Gold prices have surged in both the international and domestic markets over the week. Thus, the returns of the gold ETFs gained. The price of gold has increased by nearly 0.72% in international (London) and 1.20% in domestic (Mumbai) markets over the week ended 26 June 2009. The category average of GETFs increased by 1.75% in the week ended 26 June 2009. All five Gold ETFs posted positive returns over the week. Returns of Quantum Gold Fund and UTI-Gold Exchange Traded Fund rose 1.76% each. Gold BeES and Kotak GOLD ETF posted returns of 1.75% each.

Arbitrage funds

The arbitrage funds grew 0.04% in the week ended 26 June 2009. UTI-SPrEAD Fund and IDFC Arbitrage - Plan B posted returns of 0.15% and 0.09%, respectively. IDFC Arbitrage - Plan A have recorded returns of 0.08% over the same time period. Net asset value of Religare Arbitrage Fund scaled up marginally 0.07%. 3 funds fell over the week ended 26 June 2009. Returns of ICICI Pru Equity & Deriv -Income Optimis JM Arbitrage Advantage Fund decreased by 0.08% and 0.05% respectively.

Balanced Funds

Net asset value of the balanced funds moved up 0.98% in the week ended 26 June 2009 underperforming the Sensex. Among the balanced funds, Escorts Balanced Fund, ICICI Pru Child Care Plan-Gift Plan, Tata Balanced Fund enhanced by 5.05%, 3.44%, and 3.06%, respectively. JM Balanced Fund grew 2.91%. Only 3 out of 78 balanced funds gave negative returns over week ended 26 June 2009. Birla Sun Life Freedom Fund and ICICI Pru Real Estate Securities Fund fell 0.07% and 0.04%, respectively.

Gilt Funds

NAVs of the gilt fund category gained slightly by 0.10% in the week ended 26 June 2009. Among the gilt funds, IDFC G Sec Fund - Invst Plan – B rose 0.39%, IDFC G Sec Fund - Invst Plan - A scaled up 0.38%. IDFC G Sec Fund - PF and Templeton India G-Sec Fund – LTP grew 0.34% each. Returns of 10 out of 68 gilt funds declined over week ended 26 June 2009. Net asset value of ICICI Pru Gilt Fund - Invest - PF Option and LICMF G-Sec Fund - PF Plan dropped 0.34% and 0.20%, respectively. LICMF G-Sec Fund declined by 0.20%.

Income Funds

The category average of income funds decreased by 0.02% in the week ended 26 June 2009. In the income funds, UTI-CCP Advantage Fund gained 1.99%, Birla Sun Life Income Fund (Discipline Advant Plan) increased by 0.58%. Birla Sun Life Income Fund 54EB rose 0.58%. Returns of 20 out of 93 funds slipped over a week ended 26 June 2009. ICICI Pru S.M.A.R.T. Fund - Sr.G - 36Mths, ICICI Pru S.M.A.R.T. Fund - Sr.F - 36Mths and ICICI Pru S.M.A.R.T. Fund - Sr.H - 36Mths fell 6.38%, 2.34%, and 1.99%, respectively.

Weekly returns of various MF categories

Funds category Absolute returns (%)*
IT funds 3.28
Mid Cap funds 3.24
Banking funds 3.13
ELSS Funds 2.32
Equity diversified funds 2.25
FMCG Funds 1.96
Pharma Funds 1.87
Gold ETFs 1.75
Index Funds 1.39
Balanced Funds 0.98
Gilt Funds 0.10
Arbitrage funds 0.04
Income Funds -0.02

*As on week ended 26 June 2009
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