After declining 3.5 per cent in May, the Indian equity markets witnessed an upturn in June, with the benchmark index, the Sensex, rising nearly 4 per cent during the month. The better-than-expected index of industrial production (IIP) data for April, which rose 17.6 per cent, and an on-track monsoon were the key factors that drove the markets up. Foreign institutional investors (FIIs) emerged net buyers during the period: they invested around Rs 9,707 crore in equities.
The best-performing category during the month was Equity FMCG. It clocked a gain of nearly 11 per cent during the month. The average gains from this category over the one- and the five-year investment horizon have been 63.2 per cent and 21.5 per cent respectively.
FMCG and Auto were the best-performing sectors during June. These indices posted returns of 8.3 per cent and 8.1 per cent respectively during the month. They have clocked gains of 20.2 per cent and 23.4 per cent over the five-year horizon.
Equity Diversified: all funds end in green
This category registered a growth of 4.6 per cent during the month. All the 259 diversified funds ended the month in the green. The best performers within this category were DSPBR Micro Cap Reg and Sahara Wealth Plus Variable Pricing. These funds posted returns of 8.4 per cent and 8.3 per cent respectively during the period. DSPBR Micro Cap Reg and Sahara Wealth Plus Variable Pricing have average asset under management (AAUM) of Rs 293.8 crore and Rs 7.54 crore respectively. The bottom two positions were occupied by Taurus Infrastructure and Religare AGILE: they posted meagre returns of 1.2 per cent and 1.5 per cent respectively.
Tax planning: all funds up
All the 37 funds in this category managed to land in the positive terrain, unlike last month when all the funds under this category ended the month in the red. The category average return for Tax Planning was 4.7 per cent in June. The top performers in this category were Sahara Tax Gain and ING Tax Savings, which have AAUM of Rs 9.8 crore and Rs 43.88 crore respectively. These funds posted returns of 6.7 per cent and 6.5 per cent respectively.
Sectoral: FMCG leads
As mentioned earlier, Equity FMCG was the best-performing category during the month. ICICI Prudential FMCG and Franklin FMCG were the front-runners in this category, with returns of 13.8 per cent and 10.3 per cent respectively during the period.
Hybrid Equity Oriented (Balanced): all funds up
All the 33 funds in this category ended the month in the green. This category posted an average return of 3.5 per cent during the month. It has clocked returns of 24.7 per cent and 16.8 per cent over the one- and five-year horizons. The top performers in this category were JM Balanced and HDFC Children's Gift-Inv with returns of 4.9 per cent and 4.8 per cent respectively.
Equity Speciality: 15 funds down
Of the 34 funds in this category, 15 slipped into the red during the month. The two top gainers were Reliance Media & Entertainment and Sundaram BNP Paribas Entertainment Opportunities Ret with returns of 11.02 per cent and 8 per cent respectively. The two biggest losers were DSPBR World Energy Reg and Birla Sun Life Commodity Equities-Global Multi Commodity Ret. These funds posted returns of (-) 4.8 per cent and (-) 4.4 per cent respectively.