Boom rakes in the moolah for MFs
If you thought only a few corporate moghuls and some seasoned investors benefited from the current unrelenting rally in the stock market, a look at the mutual fund (MF) returns in the last year will prove you wrong.
By Madhu, TNN |
MUMBAI: If you thought only a few corporate moghuls and some seasoned investors benefited from the current unrelenting rally in the stock market, a look at the mutual fund (MF) returns in the last year will prove you wrong.
Their performance in the last five years will convince you that MFs are indeed the best friend of individuals not well-versed in the working of the stock market.
According to Value Research, an independent MF tracking firm, other speciality funds (sectoral schemes like telecom, financial services , media and entertainment among others) have given an average return of 52.52% in the last one year, closely followed by banking schemes that returned around 48.91%.
Index schemes, the most passive form of investment, where you are not even betting on the stock picking skills of the fund manager, returned around 40.18% in the last year. Diversified equity schemes gave around 38% return to investors while tax planing schemes offered around 37.58%. Technology schemes averaged around 25%, with FMCG, pharma and auto trailing at 9.54%, 6.18% and -1 .63% respectively.
Over a three-year period also funds posted an impressive performance. Diversified funds topped the list with 43.61%, closely followed by banking (42.63%), tax planning (42.55%), index (41.47%) and other speciality schemes (40.34%). Even laggards in the one-year period have offered moderate returns.
Auto schemes, which gave negative return in the last year, offered 23.21%, FMCG (36.93%) and pharma (18.68%) also offered encouraging returns. The five-year returns are also equally brilliant. Once again, diversified schemes topped the chart with 49.36%, clearly showing that India is still a stock pickers market. Tax planning schemes followed closely with 48.24%, and index (40.01%), other speciality funds (36.56%) also didn’t disappoint.
Technology schemes also pocketed 36% for investors, followed by FMCG (33%) and Pharma (28.69%) schemes.
Their performance in the last five years will convince you that MFs are indeed the best friend of individuals not well-versed in the working of the stock market.
According to Value Research, an independent MF tracking firm, other speciality funds (sectoral schemes like telecom, financial services , media and entertainment among others) have given an average return of 52.52% in the last one year, closely followed by banking schemes that returned around 48.91%.
Index schemes, the most passive form of investment, where you are not even betting on the stock picking skills of the fund manager, returned around 40.18% in the last year. Diversified equity schemes gave around 38% return to investors while tax planing schemes offered around 37.58%. Technology schemes averaged around 25%, with FMCG, pharma and auto trailing at 9.54%, 6.18% and -1 .63% respectively.
Over a three-year period also funds posted an impressive performance. Diversified funds topped the list with 43.61%, closely followed by banking (42.63%), tax planning (42.55%), index (41.47%) and other speciality schemes (40.34%). Even laggards in the one-year period have offered moderate returns.
Auto schemes, which gave negative return in the last year, offered 23.21%, FMCG (36.93%) and pharma (18.68%) also offered encouraging returns. The five-year returns are also equally brilliant. Once again, diversified schemes topped the chart with 49.36%, clearly showing that India is still a stock pickers market. Tax planning schemes followed closely with 48.24%, and index (40.01%), other speciality funds (36.56%) also didn’t disappoint.
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Technology schemes also pocketed 36% for investors, followed by FMCG (33%) and Pharma (28.69%) schemes.
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