Equity funds ride on upbeat markets

Equity funds ride on upbeat markets

With equity markets closing the month of December in positive territory, the calendar year ended on a high for investors. However, the month wasn’t all smooth sailing as spiralling inflation (food prices in particular) threatened to play spoilsport.

This in turn prompted speculation that the central bank would hike interest rates. Conversely, markets drew from positive numbers for the Index of Industrial Production, exports and advance tax payments.

Also See India’s Large-Cap, Mid-Cap, Small-Cap (Graphics)

Towards the latter half of the month, comments attributed to the finance minister and the Prime Minister on expectations of an accelerated economic growth cheered markets. Incidentally, gross domestic product data for the September quarter revealed that the economy grew 7.9% on a year-on-year basis, thereby comfortably beating the lower expected growth rates.

The Sensex rose by 3.2% over the month. The BSE 100 and BSE Mid-Cap indices posted a monthly growth of 3.5% and 4.7%, respectively. It was a particularly good month for investors in the small-cap segment; the BSE small-cap index appreciated 11.1%.

In order to merit funds’ long-term performance, they have been ranked based on their one-year Morningstar risk-adjusted return for this review.

Graphics by Ahmed Raza Khan / Mint