There is yet another reason to smile for the mutual fund investors in India. When equity markets are passing through some choppy sessions, the mutual funds stand out clear winner by a big margin. Grasp this; the Sensex on Bombay Stock Exchange is about 9.5% down for a year as on June 7, 2012, the equity based funds have registered returns up to 10%. Nonetheless, top ranked index fund is also 7% down beating the Sensex by margin of 2%.
The BSE Sensex closed on June 8, 2011 at 18,394 points and after a year on June 7, 2012, Sensex closed at 16649 points. Among equity funds, SBI Magnum Equity Sector Funds has posted a return of 10.12% absolute return over a year. There are 10 funds in the same category which have given positive return for the same period and 144 equity funds have beaten the Sensex.
The story of Balanced Funds is also similar as the top performing fund; Escorts Opportunities Fund (Growth) cloaked 3.62% return for the same period of time. Almost all Balanced Funds have fared better than the equity markets though only 5 funds managed to remain in the positive territory.
Equity Linked Savings Schemes have a similar story but not as encouraging as the equity funds. The top scheme, ICICI Prudential RIGHT Fund (Growth) with a return of 2.25% is one of the 30 odd funds in the category to beat the Sensex. The investors nearing or having completed the lock-in period should resist to redeem the funds as on account of three years also, most of the funds stand a chance to gain a better NAV in these volatile markets.
HDFC Index Fund – Sensex Plus Plan, top of the table in Index Fund category has posted -6.2% return. Index funds follow the trail of indexes are bound to be closed to the returns of what the equity market indexes generate. Yet, there are 14 funds in the category which managed to stay above the performance of the Sensex.
Baroda Pioneer launches Baroda Pioneer Banking & Financial Services Fund
Baroda Pioneer MF has launched a new fund namely, Baroda Pioneer Banking & Financial Services Fund, an open ended sectoral scheme. The face value of the scheme is Rs. 10 per unit. The new issue will be open for subscription from 1st June 2012 and closes on 15th June 2012. The investment objective of the scheme seeks to generate long-term capital appreciation for unit holders from a portfolio invested predominantly in equity and equity related securities of companies engaged in the Banking & Financial Services Sector. The performance of the scheme will be benchmarked against CNX Bank Index and will be managed by Dipak Acharya.
Canara Robeco launches Canara Robeco Gold Savings Fund
Canara Robeco MF has launched a new fund named as Canara Robeco Gold Savings Fund, an open ended fund of fund scheme. The face value of the scheme is Rs. 10 per unit. The new issue will be open for subscription from 4th June 2012 and closes on 18th June 2012. The investment objective of the scheme is to provide returns that closely correspond to returns provided by Canara Robeco Exchange Traded Fund. The performance of the scheme will be benchmarked against Domestic Price of Physical Gold and will be managed by Akhil Mittal and Kiran Shetty.
Axis revises exit load under Axis Dynamic Bond Fund
Axis MF has announced to revise exit load structure under Axis Dynamic Bond Fund, with effect from 11th June 2012. Accordingly, an exit load of 1% will be charged if units are redeemed or switched out within 12 months from the date of allotment.
Axis announces change in fund management responsibilities
Axis MF has announced change in fund management responsibilities, with effect from 15th June 2012. Accordingly, Anurag Mittal has been designated as the fund manager for Axis Treasury Advantage Fund along with Ninad Deshpande.