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MF Industry on Record Setting Spree

Blessings of the bull-run have been showered copiously on these funds

Records, records, records, we are talking about setting records here. After all, with stock markets climbing to record peaks and setting new records of their own, weekly, monthly, and quarterly, could the mutual fund industry be left far behind?

Surely not. And we have the solid, unassailable proof.

The origin of the records is of course on the stock markets, and the mutual fund industry, currently, is grateful to them for the lift – however, it is still waiting for the stock markets to get back on their 20,000-plus points high again. The I.O.U. is still due.

Nevertheless, in these hard times, any and all gains are welcome. As a result of the wild and wonderful run by stock markets over the recent months, many mutual funds have registered their best performances in a quarter.

Of the 330 equity-oriented funds in the mutual fund universe, 293 funds have registered their best quarterly performances ever (period: 05/03/2009 - 04/06/2009) – this works out to a whopping 88 per cent of the funds.

Out of these 293 funds, the best performing fund has come from the stable of JM Financial Mutual Fund called JM Basic, which delivered a gain of 154 per cent. At second spot is Taurus Infrastructure at 148 per cent, and Magnum Midcap at 136 per cent.

Check out: Performers in the Bull Run

JM MF got very badly bruised during the market meltdown of 2008, but ever since the stocks have sprinted into the green starting 9 March, 2009, the fund house has been having a gala time. Three of its funds gave their best-ever returns in a quarter and are placed in the Top 5 funds’ list.

Even old-timers have got a shot in the arm in the quarter to post some outstanding returns. LIC MF Equity, unveiled in February 1993, saw its best quarterly return at 77 per cent. It was followed by another oldie, Canara Robeco Equity Tax Saver, in existence since March 1993, with a 88 per cent gain. Even Franklin India Prima and Franklin India Bluechip, launched in November 1993, logged their best quarterly performance of 91 per cent and 71 per cent respectively.

While these figures are noteworthy, they are still put in shade by the big daddy of them all, UTI MF, whose UTI Services Industries fund clocked an unbelievable 258 per cent gain during the quarter at the start of the millennium (22/11/99-22/2/00). This fund was launched in June 1999 and is currently rated as 2-star in the Value Research constellation. It was closely followed by ING Core Equity, launched in May 1999, with a gain of 174 per cent (22/11/99-22/2/00).

Indubitably, these recent times have been good for the mutual fund industry, helping it to recover relatively fast from the October 2008 lows, yet, as can be discerned from the case of UTI Services Industries fund, the action has to get much, much more hotter to obliterate that particular record.