Mumbai, 3 September Nearly 90% of India’s actively-managed diversified equity funds lost in August but a higher exposure to cash and stocks in capital goods sector helped majority of them outperform benchmark BSE index.
Such funds, the largest category by assets and number, lost an average 1.29% in August, less than 1.49% drop in the benchmark index, data from global fund tracker Lipper showed.
“The broader market did not fall as much as some of the bluechips in the recent correction,” Dhruva Raj Chatterji, research analyst with Lipper, said.
“Also, some sectors like capital goods to which several funds have increased exposure significantly in recent times, have not fallen as much,” he added.
The BSE Capital Goods index rose 0.77% in August. Diversified equity funds had invested 16.66% of their assets in engineering stocks at the end of July, data from fund tracker ICRA Online Ltd. showed.
Chatterji said many funds would have also raised their cash levels in early August when the volatility and correction deepened.
Equity funds, which generally keep 3-5% of their assets in cash to honour redemptions, put aside 8.56% of their resources as cash at the end of July, data showed.
Among other funds, those investing in drug and information technology stocks lost the most in August.
Funds in Lipper’s Equity Sector Pharma & Health category lost an average 5.48%, more than the 3.91% fall in their benchmark BSE Healthcare index.
Funds targeting technology stocks saw their net asset values drop an average 4.58% but they did better than the 5.69% fall in their benchmark BSE IT index. On the debt side, income and gilt funds did not fare too well with bond yields heading north during the month, Chatterji said. ========================================================== PERFORMANCE ==========================================================,38,48,56,66
YTD: Year to date return till August 31, 2007.
|Fund Category||Returns||in Pe||rcent|
|Bond INR General||0.39||1.14||4.70|
|Bond INR Government||0.26||1.17||3.23|
|Equity Sector Banks & Financial||2.68||4.00||21.59|
|Equity Sector Cyc Cons Goods||2.74||4.25||10.18|
|Equity Sector General Industry||0.57||7.75||23.99|
|Equity Sector Information Tech||4.58||2.72||1.17|
|Equity Sector Natural Resource||1.32||2.14||12.94|
|Equity Sector Non Cyclical Con||0.20||4.19||4.58|
|Equity Sector Pharma & Health||5.48||3.50||0.47|
|Equity Sector Tech Media & Tele||0.51||3.81||33.45|
|Equity Sector Telecom Srvcs||1.18||3.82||19.10|
|Equity Sector Utilities||2.47||9.36||34.71|
|Mixed Asset INR Balanced||0.55||3.01||8.41|
|Mixed Asset Other Aggressive||0.24||3.19||11.20|
|Mixed Asset Other Conservative||0.24||2.21||5.56|
|Mixed Asset Other Flexible||1.86||3.54||7.64|
|Money Market INR||0.53||0.71||4.75|
Returns have been calculated only for primary funds and based on Indian rupees.
* Since not all fund net asset values are reported at the
same intervals, the last available price is used for
Source: Lipper Reuters