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Funds Suffer Event Whiplash

All the big-ticket events have left the mutual fund industry in disarray

The elections are over, a new government has divided its portfolios, and the Budget has been presented too. All these big-ticket events are over and the markets have factored in each and every permutation and combination that might ensue thereof.

And that may just make this the perfect time to take stock and see how the current state of affairs on the markets has affected the diversified equity mutual funds, the category that most investors are clued into, simply because they rise spectacularly and, as was proved in 2008, they fall with as stunning an impact, not to mention that a huge number of investors have connected their financial aspirations to their future well-being and growth.

The initial knee-jerk reaction by the markets to the Budget was to crash phenomenally as it was devoid of any stimulating market-friendly news. Analysts got into the picture and said that the government had given ample warning that they would not really be unveiling any transformational changes in the economy. The government’s previous term had also given enough clues, as it had not passed any significantly important policies, which it had blamed the Left parties for. This happened after the fact, of course.

It was then predicted that investors would now look for market cues from companies’ valuations. While that would be clear when enough of the quarterly company reports have filtered in, yet it has been a week since the Budget was presented and the markets have been going nowhere, but down. On the Bombay Stock Exchange, Sensex has fallen as much as 4.58 per cent, from 14,043.4 points on July 6 to 13,400.32 on July 13.

To check the impact on the diversified equity funds, we looked at the returns they generated in this period. While it is clear that there would not be any gains, yet the extent of the damage encompassed some 234 equity funds, with none emerging with gains.The best performing one among these, it still generated negative returns, was UTI MNC with -0.86 per cent returns, while all the rest have reported losses in excess of 1 per cent.

The worst performing one is JM HI FI, which has fallen by as much as -9.22 per cent.Among the schemes a noticeable aspect of the number crunching exercise is that it has thrown up some interesting information. While the recent weeks have underlined the importance of the infrastructure sector, with even the Budget promising extra spending on it, yet there are 7 infrastructure funds present in this list of losers.

Also, there are numerous small-cap and mid-cap schemes that have been punished by the markets.

Check out the extent of the fall in the table attached:

The Top Losers
Scheme Name  Returns
JM HI FI -9.23
JM Contra -8.64
Sundaram BNP Paribas CAPEX Opp Reg-D -8.62
Sundaram BNP Paribas CAPEX Opp Reg-G -8.58
JM Basic -8.30
JM Emerging Leaders -8.27
Sahara Power & Natural Resources -7.58
DBS Chola Opportunities -7.39
UTI Mid Cap -7.38
JM Small & Mid-Cap Reg -7.32
Escorts Growth -7.00
Sundaram BNP Paribas Select Midcap Reg -6.96
Sahara Mid-Cap Fund -6.72
Sundaram BNP Paribas Rural India Reg -6.62
LICMF Growth -6.53
Birla Sun Life Special Situations -6.44
LICMF Equity -6.35
Principal Junior Cap -6.33
LICMF Opportunities -6.30
DBS Chola Growth -6.25
Bharti AXA Equity Reg -6.20
Bharti AXA Equity Eco -6.19
DBS Chola Contra -6.18
DBS Chola Multi Cap -6.17
Sundaram BNP Paribas S.M.I.L.E. Reg -6.13
UTI Infrastructure -6.02
DBS Chola Global Advantage -6.01
Magnum Midcap -6.00
Principal Emerging Bluechip -5.98
JM Multi Strategy -5.93
DBS Chola Midcap -5.79
Sundaram BNP Paribas Select Focus Reg -5.71
Franklin India High Growth Companies -5.62
Baroda Pioneer Global -5.61
JM Large Cap -5.57
DBS Chola Hedged Equity -5.50
Birla Sun Life Basic Industries -5.46
Reliance Natural Resources Inst -5.45
Reliance Natural Resources Retail -5.45
Sundaram BNP Paribas India Leadership Reg -5.43
JM Equity -5.43
Birla Sun Life Infrastructure Plan A -5.43
Birla Sun Life Infrastructure Plan B -5.39
Reliance Regular Savings Equity -5.39
Tata Growth -5.34
DSPBR Small and Mid Cap Reg -5.26
ING Contra -5.26
Fortis Future Leaders -5.25
Sahara Infrastructure Fixed Pricing -5.24
Sahara Infrastructure Variable Pricing -5.23
Birla Sun Life Advantage -5.20
UTI Master Value -5.19
Sundaram BNP Paribas Growth Reg -5.15
Taurus Discovery -5.08
Escorts Leading Sectors -5.08
Kotak Opportunities -5.07
Reliance NRI Equity -5.07
Tata Infrastructure -5.06
Period: 06/07/2009-13/07/2009
All Equity Diversified Funds