The big get bigger

The last financial year was a spectacular one for the equity market. The Sensex gained 80.54 per cent, while BSE Mid Cap and BSE Small Cap gained 130.23 per cent and 161.73 per cent, respectively. Where the debt market was concerned, the benchmark yield rose from 6.52 per cent to 7.73 per cent, and the NSE G-Sec Composite index fell by (-) 2.25 per cent. Against this backdrop, let's look at how the big players in the fund industry performed, in terms of returns and asset growth.

Equity Funds
After a distressing downturn, equity funds had a swell time riding the rally. The most popular category (equity diversified) gained 93.51 per cent. Thanks to market gains and fresh investments, assets of all equity funds rose from Rs 92,162 crore to Rs 1,79,036 crore.

Amongst the top 10 players in terms of assets under management (AUM), Magnum Contra replaced Fidelity Equity in these rankings. Reliance Diversified Power Sector Retail, which was the largest fund at the end of February 2009, slipped to No. 4, replaced by one of its siblings - Reliance Growth. The second-largest fund at the end of February 2009, Reliance Growth is now the largest with its assets more than doubling over the past year. Moreover, its performance has impressed: it bagging the No. 2 slot. You can't get luckier than that! Though in terms of sheer asset size increase, HDFC Top 200 stands head and shoulders above the rest.

Debt Funds
Debt fund investors can sweep this year under the carpet. The best performing category was 'Debt Floating Rate Long-term Institutional' with a return of 6.69 per cent. The most popular category, 'Liquid Funds', was able to deliver just 3.67 per cent, compared to 7.68 per cent of the previous financial year. But regardless of performance, the industry's assets bloated from Rs 303,795 crore to Rs 4,74,094 crore.

Unlike their equity counterparts, there were quite a few changes among the top 10 with four big funds of the previous financial year being replaced.

The biggest fund of FY2008-09, LICMF Liquid, fell to the No. 9. The top position was taken by ICICI Prudential Flexible Income Regular, a liquid plus fund which was nowhere in the rankings in FY 2008-09. The fund's assets have more than doubled in a year and it delivered a return of 4.52 per cent (category average: 4.64%). LICMF Liquid was the only one to see its assets dip.