Tempered Performance | Value Research Diversified Equity Funds returned a meagre 2.75 per cent in April, far less than their returns in March
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Tempered Performance

Diversified Equity Funds returned a meagre 2.75 per cent in April, far less than their returns in March

After rising by more than 6 per cent in March, the equity diversified category clocked 2.75 per cent return in April. These funds had done well in March particularly after their poor performance in the first two months of this calendar year when they posted returns of (-) 4.19 per cent in January and (-) 0.21 per cent in February.

The BSE Sensex and Nifty too could not hold on to their March gains: they clocked a meagre 0.18 per cent and 0.55 per cent gains respectively in April. BSE Sensex had gained 6.68 per cent in March.

All mutual fund categories managed to stay in the green in April. Leading from the front were Equity-Banking and Equity-Technology (March's worst performer) which clocked 6.59 per cent and 3.64 per cent respectively. Equity Pharma, which was March's top performer, however, slipped many places to clock a mere 1.64 per cent return.

Sectoral Indices
In April, the BSE Small cap index posted better returns than its mid-cap counterparts. BSE Small cap clocked 8.35 per cent return while BSE mid-cap clocked 5.56 per cent. BSE Consumer Durables was the top performer in April: it clocked 10.06 per cent return. The other top performer was BSE Realty which clocked 6.65 per cent return. This index barely managed to stay in the green: it had fetched 1.14 per cent return.

BSE Oil and Gas was the worst performer in April after it went into the red to clock (-) 2.32 per cent. BSE Metal which was the top performer in March was back to its poor form in April, slipping in the red to clock (-) 1.72 per cent return. BSE Capital Goods too slipped into the negative to post (-) 0.38 per cent return.

Equity Diversified: Nine funds in Red
Three funds of Escorts Mutual Fund -- Escorts Growth, Escorts High Yield Equity and Escorts Leading Sectors -- posted the maximum returns in April. They clocked 10.42 per cent, 9.60 per cent and 8.58 per cent returns respectively. However, unlike March, when all the funds had managed to stay in the green, nine funds out of the total 260 funds in this category posted negative returns in April. Reliance Natural Resources Retail and ICICI Prudential Indo Asia Equity Retail posted the minimal (-) 0.69 per cent and (-) 0.62 per cent returns respectively.

The biggest fund in this category, Reliance Growth, with AUM of Rs 7,110.64 crore as on March 31, 2010, posted 4.23 per cent returns. Another big fund, HDFC Top 200 with AUM of Rs 6,726.32 crore fetched 2.27 per cent return.

Tax Planning
This category managed to clock better returns than the equity diversified category. In April, it posted 2.88 per cent return. In March, the category posted a return of 6.36 per cent. The year-to-date (YTD) of this category stands at a robust 4.60 per cent. All the 37 funds in this category managed to stay in the green.

Escorts Tax Plan was the best performer in April after clocking 9.18 per cent return. Meanwhile, Franklin India Index Tax and UTI Equity Tax Savings posted the minimal 0.46 per cent and 0.61 per cent returns in April.

The biggest fund in this category, Magnum Taxgain with AUM of Rs 5347.97 crore as on March 31, 2010, posted 1.07 per cent return. The fund had clocked 5.24 per cent return in March. HDFC Taxsaver, another big fund in this category with AUM of Rs 2290.57 crore also posted a minimal 1.71 per cent return.

Sectoral
Equity Banking funds led from the front as the category went on to post 6.59 per cent return in April. The category's year-to-date YTD return too stood at a robust 12.43 per cent. This category had posted a handsome 7.73 per cent in March.

Following close behind was Equity Technology which rose from the dumps in March to post 3.64 per cent return in April. This category was at the bottom after clocking 2.49 per cent return in March. Equity FMCG too clocked a decent 2.38 per cent return. March's best performer Equity Pharma which clocked 10.82 per cent return, however slipped down the table in April to post 1.64 per cent return though its YTD stood at a robust 11.83 per cent.

Reliance Banking Retail was the best performing fund in April in the Equity Banking category after it clocked 8.86 per cent return. Meanwhile in the equity technology category, it was DSPBR Technology.com Reg which clocked the maximum 5.21 per cent return.

Hybrid Equity Oriented (Balanced)
This category posted 2.16 per cent return in April down from 4.66 per cent return in March. The YTD of this category stands at 4.13 per cent. ICICI Prudential ChildCare-Gift and Escorts Balanced posted the maximum 7. 23 per cent and 7.18 per ent return in April. On the other hand, two funds of ICICI Prudential Mutual Fund -- ICICI Prudential Balanced and ICICI Prudential Eq & Der Wealth Optimiser Reg were the worst performer in April after they clocked 0.12 per cent and 0.32 per cent returns respectively.

The biggest fund in this category, HDFC Prudence with AUM of Rs 3730.33 crore as on March 31, 2010, clocked 3.52 per cent return. The fund had posted 4.81 per cent in March.




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