NEW DELHI: Investors lost as much as 20% of their money put into equity focused mutual funds over the past one month as the benchmark stock index Sensex dropped about 11% during the same period.
While the Bombay Stock Exchange’s 30-share barometer index has come down sharply from a life-time high of 14,724 hit on 9 February on concerns related to global meltdown and additional tax provisions in this year’s Union budget, the loss have been even bigger for the equity MF investors.
“Markets have been disappointing over the past one month with equity fund MFs losing 12% on average and the returns have been negative across the board (from all the funds),” mutual fund tracking firm Value Research CEO Dhirendra Kumar said.
The returns have been in the range of 8-20% for equity funds in the past one month, he added.
An analysis of MF returns shows that open-ended equity funds have given a return of as low as 20.36%, while none of the equity and hybrid (equity and debt) fund segments managing to get a positive average return for this period.
Among the various equity fund categories, auto, banking, tax planning, diversified and index funds have given negative returns of 11-16%, while returns from technology, asset allocation, pharma, FMCG have been between 9-10%.
Equity-focused hybrid funds have been a tad better with a negative return of 7.93%, but pales in comparison to the negative return of just 3.2% from debt-focused hybrid funds.
In comparison, most debt funds have managed a positive average return, although the average returns across various categories remained below 0.6%.
JM Hi-Fi Growth, JM Equity, UTI Auto Sector, Taurus Discovery Stock, ABN Amro Future Leaders, LIC MF Equity, ABN Amro, Tax Advantage, Libra Taxshield and Reliance Tax Saver have been among the worst open-ended equity funds with negative returns ranging from 15-21%.
Principal Global Opportunities and DSP ML Technology.com have been the best performers over the past one-month period with negative returns of around 4%.
The performance of closed-end equity funds have also been not much better, with negative returns of 16%.
Funds like Tata Capital Builder and ING Vysya CUB, Sundaram BNP Paribas Tax Saver ‘97 have given negative returns close to 15%, while those from BOB ELSS, UTI MEPUS, Standard Chartered Enterprise Equity, UTI Wealth Builder and Prudential ICICI Fusion have been more than 12% in the red.
Among the closed-end equity funds, SBI One India has given the best return of 2.7% in the red, followed by Reliance Long Term Equity with a negative return of 6.2%.