Monday, April 18, 2011

Weekly Scenario: Mid Cap Funds Outperform Large Cap Funds

Indian market ended the short week on a bleak note amid high volatility. After starting the week on a depressing note, short covering was seen on Wednesday which pulled the market to mount upto 400 points. 

High prices of vegetables and manufactured items drove the headline inflation in March to 8.98%. The overall inflation measured on the basis of Wholesale Price Index (WPI) was 8.31% in February. 

Among the major categories in equity fund, Mid Cap Funds and Multi Cap Funds were the gainers by 0.57% and 0.04% respectively over the one week period ended 15 April 2011. On the other hand, Index Funds, Large Cap Funds and Tax Savings Funds were the losers by 0.25%, 0.07% and 0.04% respectively. When we look at the sectoral funds, FMCG Funds gained a maximum of 2.09%, followed by Pharma Funds by 1.34% and Banking Funds by 0.63%. Infotech Funds was the loser among the sector funds losing by 3.69%. 

Among the debt fund categories, Ultra Short Term Funds and Floating Rate Income Funds – Short Term were gainer by 0.16% each, Floating Rate Income Funds – Long Term and Short Term Income Funds by 0.15% each, Liquid Funds by 0.14%, Income Funds by 0.10% and Gilt Funds – Short Term by 0.05%, while Gilt Funds – Medium & Long Term was loser by 0.15%. 

Debt Oriented Balanced Funds surged the highest among the Hybrid Funds by 0.18%, followed by Equity Oriented Balanced Funds by 0.18%, Monthly Income Plans by 0.11% and Arbitrage Funds by 0.06%. On the Other hand Gold ETF's gained 1.19% and Other ETF's by 0.03%. 

Mid Cap Funds: Out of 41 funds, 25 bettered the category average. UTI-Mid Cap Fund was the top performer, which gained by 1.29%, followed by Canara Robeco Emerging Equities which climbed 1.18% and DSP BR Small and Mid Cap Fund rose 1.17% among others. SBI Magnum Midcap Fund, BNP Paribas Mid Cap Fund and HSBC Midcap Equity Fund ended at the bottom of this category declining by 0.70%, 0.10% and 0.06% respectively. 

Multi Cap Funds: Out of 71 funds considered, 28 outperformed the category average. Escorts Leading Sectors Fund was the top performer, which gained by 1.25%, followed by Sundaram Rural India Fund which climbed 0.94% and Birla Sun Life India Reforms Fund rose 0.89% among others. Tata Select Equity Fund and ICICI Pru Equity Opportunities Fund ended at the bottom of this category declining by 0.73% and 0.63% respectively.