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Beaten by the Sensex

The equity diversified fund category could not keep up with the pace set by the Sensex

The recent past has seen equity diversified funds rising from their lows. However, for investors who are looking too make money with a long-term perspective, it would be advisable that they take a close look at performances of indices and funds and do the necessary comparisons before coming to any sort of conclusions. In short, don’t jump the gun.

The Bombay Stock Exchange sensitivity index Sensex has of late been witnessing a rally in the bear market that it had been wallowing in. The index has gained 19.62 per cent in the past one month and 30.6 per cent in the past three months as of April 24, 2009.

However, as far as equity diversified funds as a category are concerned, this positive sentiment was not enough to make them power to greater gains that they were used to clock during the heyday of the boom.

In fact, the fund category, far from outpacing the Sensex’ returns, managed returns that were 1 per cent and 7 per cent lower than the index in the one-month and three-month return respectively.

Beaten by the index

Returns 1-Mth

Returns 3-Mth

Equity Diversified

18.82

22.92

BSE Sensex

19.62

30.60

The brightest stars to have emerged in this recent rally are mid-and small-cap funds. In the one month period ending April 24, 2009, 82 funds have been able to outshine the BSE Sensex index while 97 funds have been able to beat the category’s average return. JM Basic has turned out to be the biggest gainer with a return of 35.84 per cent. It is followed by Magnum Midcap, Principal Junior Midcap, JM Emerging Leaders and Magnum Emerging Businesses.

In the three-month period ending April 24, 2009, just 12 funds have managed to outperform the Sensex as well as the category average. Principal Junior Cap led the pack with 32 per cent returns. The others were Principal Emerging Bluechip, Taurus Infrastructure, JM Basic and DBS Chola Opportunities.

Sensex-Beating Funds

Top 15 funds**

1-Month Return*

JM Basic

35.84

Magnum Midcap

32.90

Principal Junior Cap

32.02

JM Emerging Leaders

30.83

Magnum Emerging Businesses

30.54

Canara Robeco Emerging Equities

30.45

Taurus Infrastructure

30.34

JM Small & Mid-Cap Reg

28.51

Sundaram BNP Paribas S.M.I.L.E. Reg

27.97

DBS Chola Opportunities

27.79

DBS Chola Midcap

27.30

Sundaram BNP Paribas Select Midcap Reg

26.50

Principal Emerging Bluechip

26.43

ICICI Prudential Discovery Inst I

25.71

Canara Robeco Equity Diversified

25.57

*Ending April 24, 2009

**Out of 82 funds

Outperforming the Sensex

Top Funds

3-Month Return*

Principal Junior Cap

35.82

Principal Emerging Bluechip

35.11

Taurus Infrastructure

34.36

JM Basic

34.01

DBS Chola Opportunities

33.31

JM Emerging Leaders

32.72

Templeton India Equity Income

32.53

Mirae Asset India Opportunities Institutional

31.69

Principal Large Cap

31.67

Mirae Asset India Opportunities Regular

31.40

Canara Robeco Infrastructure

31.26

Canara Robeco Equity Diversified

30.73

*Ending April 24, 2009