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Equity Funds Post Positive Returns

The month of November saw the equity mutual fund constellation march to steady, if not sensational, gains

Mutual funds were net sellers two months in a row after having offloaded Rs 695.60 crore worth of assets in November, which came in the wake of October's sell-off of Rs 5,194.30 crore, according to the Securities and Exchange Board of India (SEBI) data.

On the stock markets, BSE Sensex gained 6.48 per cent in November after witnessing a fall of 7.18 per cent October. The best-performing index though, was BSE Metals, which delivered a return of 16.87 per cent. BSE Auto came second posting an 11.25 per cent gain and in third place was BSE Healthcare with 8.91 per cent.

 The markets benefited from foreign Institutional Investors (FIIs) net-investing Rs 5,497 crore in November, on top of a huge Rs 9,077 crore investment in October.

 Equity Diversified

For the whole of this year (till November 30), the equity diversified category posted an average return 76.73 per cent. However when it comes to November alone, it posted returns of 6.33 per cent, thus slipping further down from the 3-month returns of 9.03 per cent.

The gain was enough to ensure that out of a total of 246 equity diversified funds, none gave negative returns. Amongst the top five funds, in the No. 1 position was Magnum Comma with a 10.35 per cent gain - quite a jump from a negative 5.34 per cent posted by it in October. Religare AGILE held the second place with a 10.30 per cent gain. However, it held the last position in the top five funds' table as far as 1-year returns are concerned. At the other end of the spectrum, Edelweiss Absolute Return Equity Fund posted smallest gain at 1.31 per cent.

Amongst the biggest funds, Reliance Growth, with total assets under management (AUM) of Rs 6,209.95 crore generated a return of 7.71 per cent in November. Second-biggest was HDFC Top 200 at 6.05 per cent returns.

Tax Planning

The second-biggest fund category however, has been slipping over the last one year. Notwithstanding the 1-year high returns of 89.39 per cent, it stood at 6.73 per cent in November. It gave 21.72 per cent and 9.53 per cent in 6-month and 3-month returns respectively. However, the return of this category remained at a robust 74.49 per cent for the year till November 30.

Out of a total of 36 funds, all gave positive returns with Bharti AXA Tax Advantage Regular and Bharti AXA Tax Advantage Regular Eco posting the maximum returns of 9.03 per cent and 9.02 per cent respectively.

The biggest fund, in terms of assets, at Rs 4,999.93 crore in this category turned out to be Magnum Tax Gain, which posted returns of 7.20 per cent while it had posted a negative 4.32 per cent in October.

Index

This category posted returns of 6.47 per cent in November - the category average till November 30 this year remained at 68.52 per cent. Reliance Pharma turned out to be the fund which posted the maximum returns at 9.17 per cent.

Sector Funds

Among various other equity categories, Technology topped by clocking returns of 7.68 per cent in November. There are five funds in this category. The best-performing fund was Magnum IT with gains of 13.03 per cent while the worst performer was Birla Sun Life New Millennium, which posted a return of 5.37 per cent.

Balanced: Equity Oriented

This category too posted a meagre 5.1 per cent returns in November though it was a slip from its earlier 3- and 6-month returns when it posted 7.18 per cent and 14.81 per cent returns respectively. The category returns till date however remained at 51.96 per cent (30/11/2009).

Arbitrage



Lack of opportunities however, again led to this category posting minimal returns as has been the trend in the past. In November, this category posted 0.16 per cent returns, which was a further slip from 1.04 per cent which it posted as 3-month returns. Although all the funds in this category gave minimal returns, they managed to stay in the green. UTI Spread turned out to be the fund to post the maximum returns in November with 0.43 per cent. The category however posted a YTD return of 4.33 per cent (30/11/2009).





Category Gainers
         Returns (%)    
Category/Benchmarks    1-Month    1-Year    YTD
Equity: Technology   7.68   96.55   99.39
Equity: Pharma   7.20   97.68   81.71
Equity: Tax Planning   6.73   89.39   74.49
Equity: Index   6.47   88.09   71.24
Equity: Diversified   6.33   91.64   76.75
Equity: Banking   6.26   94.40   75.27
Hybrid: Equity-oriented   5.10   62.82   51.97
Equity: FMCG   5.05   70.10   62.45
Equity: Speciality   4.69   65.10   55.85
Hybrid: Asset Allocation   2.87   49.21   43.34
Hybrid: Arbitrage   0.16   5.42   4.33
BSE Metal    16.87    271.68    212.45
BSE Auto    11.25    201.07    187.01
BSE Healthcare Index    8.91    65.09    60.73
BSE Bankex    7.57    116.18    84.11
BSE IT Index    7.50    85.91    113.53
BSE Sensex    6.48    86.15    75.45
BSE FMCG Index    2.25    48.31    44.52
As on November 30, 2009