| Monthly Performance Round up- August 2006
MutualfundsIndia.com |
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The month of August saw the markets traversing higher and higher clocking impressive gains. Barring few corrections the markets remained in positive territory throughout the month while Sensex breaching the important level of 11000 early in the month. The pause in Fed rate and BOJ rate hike induced the buying across the board with increased participation seen in midcap and smallcap stocks. Besides strong support from institutional investors and ease in oil prices propelled the rally further and Sensex & Nifty appreciated 8.89% and 8.61% respectively during the month ending well above the crucial mark of 11500 and 3400 respectively. The sentiments by and large were positive in the absence of any near term concerns and markets reported the highest closing since May 17, 2006. BSE midcap & BSE smallcap indices which registered decline last month outstripped broad based indices and gained 11.49% and 12.61% respectively. The performance of sector indices has been good and all Sectoral indices ended in green. Oil stocks gained momentum with ease in crude oil price and BSE Oil & Gas was the best performer with returns of 12.11%. Among other sectoral indices BSE CD and BSE Bankex posted impressive gains of 11.78% and 11.01% respectively. However BSE Metal index was the laggard up mere 3.82%. FII’s bought heavily in equities and ended the month with net investments of Rs 4643 crore compared to last month’s net investments of Rs 1145 crore. With this FII’s net investment in equities year to date stands at Rs 17389 crore. However MFs that was on selling spree since last two months turned buyers and bought equities worth Rs 426 crore during the month of August. Mutual funds illustrated impressive performance and delivered average returns of 8.98% while Sensex and Nifty gained 8.89% and 8.61% respectively. Out of the 153 equity schemes in diversified equity fund category 89 schemes managed to outperform Sensex and 100 schemes Nifty. Among Sectoral Funds, Pharma Funds and Banking Funds were the top performing category and gained 13.45% and 11.89% respectively. However FMCG Funds were the laggards up 7.9%. The total assets under the management of mutual fund industry showed
remarkable growth and crossed Rs 300000 crore marks for the first time.
The total industry assets rose by 6.9% from Rs.287088 crore to Rs 307106
crore. In an interesting trend UTI Mutual Fund managed to regain its top
slot in asset tally after three months and reported highest increase in
corpus by Rs 4069 crore in absolute terms followed by Prudential ICICI
Mutual Fund at Rs 2687 crore. Run up in the equity markets and healthy
inflows in debt segment through existing schemes and new fund offerings
scaled the corpus of UTI Mutual Fund for the considered month. However
in percentage terms Sahara Mutual witnessed an increase of 40% in its
corpus from Rs 175 crore in the month of July while the assets under management
of BOB Mutual Fund saw a decline of 14% compared to the previous month.
HSBC Mutual Fund was the biggest loser in absolute terms by Rs 528 crore. |
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Equity Diversified Funds |
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| (One month return as on 31/08/2006) | ||||||||||||||||||||||||
| Out of the 153 schemes in diversified equity fund category
Taurus Discovery Stock and Reliance RSF Equity Fund topped the charts with
returns of 18.15% and 14.50% respectively. Sharp upsurge in equity markets
scaled mutual funds NAV and the category reported average return of 8.98%
for the month of August. However in earlier month equity funds shed 0.13%.Taurus
Discovery stock manages the corpus of Rs 21.19 crore as on August 2006 and
has invested 87.61% of its assets in equity, 1.18% in debt and rest in cash
and equivalent. While Reliance RSF Equity fund has the asset base of Rs
73.46 crore and has invested 83% of its assets in equity and rest in cash
and equivalent. Both the schemes had significant exposure in midcap and
small stocks and good showing of midcap and smallcap stocks in the month
of August has boosted the returns of schemes. Equity Linked Saving Schemes (ELSS) |
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| (One month return as on 31/08/2006) The ELSS
Fund category performed better than the equity diversified funds for the
considered month and average return stood at 9.18%. Prudential ICICI Taxplan
was the top performer up 14.75% followed by Taurus Libra Taxshield at
12.72%. Prudential ICICI Tax plan has benefited from its midcap and smallcap
oriented portfolio with 97% of investments in equities. Sahara Tax gain
and DWS Tax saving fund gained least up 7.1% and 5.5% respectively. |
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| (One month return as on 31/08/2006) HDFC Prudence Fund, top performing fund in Balanced Fund category matched the returns of average diversified equity fund and gained 8.79% during the month of August. Birla Sunlife 95 fund closely followed it with returns of 8.03% while category posted average return of 6.45%. HDFC Prudence Fund has invested 75% of its assets in equity, 12% in debt and rest in cash & equivalent as on August 2006. The scheme manages a huge corpus of Rs 1793 crore with equity investments across the market capitalistion. Monthly Income Plans (MIPs) |
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| (One month return as on 31/08/2006) Monthly income plans delivered an average return of 1.79% during the month of August. Prudential ICICI Income Multiplier Fund was in top gear with absolute returns of 3.09%. Reliance MIP a scheme from Reliance Mutual Fund was the second best performer with returns of 3.02%. Income Funds The yield on the benchmark 7.59 per cent GOI 2016 fell to 7.89% from 8.23% a month earlier, down 34 basis point. Increase in bond prices was led by easy liquidity coupled with the easing oil prices and pause in interest rate hike by U.S. Federal reserve. Yields continued to soften across tenors as the bond markets benefited from hopes that positive global cues may prompt a slower pace of rate increases in the domestic context. In its Annual Report, the RBI reiterated the growth target of 7.5-8% for the year 2006-07. However, it cautioned that high credit growth and an incomplete pass-through of oil prices might impact price stability and inflationary expectations. |
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| (One month return as on 31/08/2006) The category average returns at 0.47% were comparable to the previous month. In the Income Fund category, Principal Income Fund was the best performer posting impressive returns of 1.392% vis-à-vis category average returns of 0.479%. Prudential ICICI Income Fund was the next topper with average returns of 1.306%. Liquid Funds Call rates remained range bound given comfortable liquidity prevailing in the system and ended the month at 6-6.1% with no change in rates compared to the previous month. |
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| (One month return as on 31/06/2006) In the Liquid Fund category DWS Money Plus Fund from Deutsche Mutual Fund was the top performer giving absolute returns of 0.585%.Prudentail ICICI Liquid Plan-FII at second position closely followed it with average returns of 0.5851% while the category returned 0.511%. |