For Indian mutual fund houses, the year 2009 ended on a fairly satisfying note. The industry’s assets under management swelled to Rs 8,00,000 crore, much of it on the back of institutional money as retail penetration continued to be negligible.
Rather, the retail numbers appear to have worsened, especially after market regulator Sebi scrapped entry loads (read as distributor commission) on the sale of equity Mutual Fund(MF) schemes. The lack of enthusiasm on the part of distributors and investment advisors in promoting equity MFs has hit fresh sales of these products.
Add to it, a substantial amount of money also moved out of the industry, especially since August 2009. The net outflow from equity schemes was Rs 81 crore in 2009 despite the fact that the stocks markets generated returns of over 75% while equity MFs, on an average, posted returns of close to 84% in the year.
The negative inflows into equity MFs last year is in stark contrast to the trend observed in earlier years. For example, in 2008, when the markets tanked and fund houses were under heavy pressure to meet redemptions across the MF industry, net inflows in equity schemes aggregated at Rs 25,799 crore, and in 2007, one of the best years in the history of Indian equities , net inflows were at Rs 21,889 crore.
But for those who have invested in these schemes, ET Mutual Fund Tracker, like every quarter, continues to provide you a performance update of MF schemes across five broad categories of equity diversified, equity tax saving (ELSS), monthly income plans (MIP), equity-oriented balanced and debt schemes.
REPORT CARD AT A GLANCE
As many as 263 schemes were analysed this quarter and graded according to their performances as platinum, gold, silver, bronze and lead. With the tax saving season underway, investors can choose from among some of the consistent performers in the ELSS category such as Canara Robeco Equity Tax Saver, Fidelity Tax Advantage and Sundaram BNP Paribas Tax Saver. These schemes have figured in the list of platinum and gold grades consistently.
There has also been a major improvement in the performances of ICICI Prudential (I-Pru ) Tax Plan and HDFC Tax Saver over the previous quarters. While I-Pru Tax Plan has succeeded in moving up from silver to gold for the very first time this quarter, HDFC Tax Saver may have to work harder to regain the platinum grade.
Under the category of diversified equity schemes, a good number of funds have made it to the platinum grade for the very first time. These include
Birla Sun Life Midcap, UTI Opportunities, Templeton India Growth, HDFC Equity, ING Dividend Yield and Principal Large Cap.
Also racing way ahead in performance is I-Pru Discovery, which has been graded gold for the second consecutive quarter in a row. A fund based on a value style of investment, I-Pru Discovery has been highly acclaimed for its top notch performance in 2009. In fact, most ‘value’ funds such as Templeton India Growth, Tata Equity PE and UTI Master Value have shown a major improvement in their performances last year, especially during the last quarter. (For complete list of ratings, log on to www.etintelligence.com)
THE BEST FUND HOUSE
Reliance and IDFC continue to be the top two best fund houses for the second consecutive year in a row followed by HDFC, Birla Sun Life and DSP Blackrock. As a minimum of 1.5% of the total industry assets under management (AUM) forms one of the selection criteria for the best fund house, Canara Robeco, which otherwise tops the performance list with a score of 29.5, has not been considered in this category.
BEST FUND HOUSE - HOW WE DO IT
The number of schemes analysed by the ET Quarterly MF Tracker varies for each fund house. We thus consider the percentage of schemes falling under the platinum, gold, silver, bronze and lead grades for each fund house separately to ensure that there is a level playing field for all these fund houses. Each of the grades is assigned weights corresponding to their order of importance.
Thus, platinum gets the highest and lead the lowest of all weights. A weighted average score (WAS) is then arrived at for each fund house and the fund houses are ranked in the descending order of their WAS. Thus, the fund house with a higher percentage (and not number ) of total schemes in the platinum and gold grades will enjoy a higher WAS vis-à-vis the others.
Source:http://economictimes.indiatimes.com/Features/Investors-Guide/Equity-schemes-performance-stood-out-last-year/articleshow/5574502.cms?curpg=2
Rather, the retail numbers appear to have worsened, especially after market regulator Sebi scrapped entry loads (read as distributor commission) on the sale of equity Mutual Fund(MF) schemes. The lack of enthusiasm on the part of distributors and investment advisors in promoting equity MFs has hit fresh sales of these products.
Add to it, a substantial amount of money also moved out of the industry, especially since August 2009. The net outflow from equity schemes was Rs 81 crore in 2009 despite the fact that the stocks markets generated returns of over 75% while equity MFs, on an average, posted returns of close to 84% in the year.
The negative inflows into equity MFs last year is in stark contrast to the trend observed in earlier years. For example, in 2008, when the markets tanked and fund houses were under heavy pressure to meet redemptions across the MF industry, net inflows in equity schemes aggregated at Rs 25,799 crore, and in 2007, one of the best years in the history of Indian equities , net inflows were at Rs 21,889 crore.
But for those who have invested in these schemes, ET Mutual Fund Tracker, like every quarter, continues to provide you a performance update of MF schemes across five broad categories of equity diversified, equity tax saving (ELSS), monthly income plans (MIP), equity-oriented balanced and debt schemes.
REPORT CARD AT A GLANCE
As many as 263 schemes were analysed this quarter and graded according to their performances as platinum, gold, silver, bronze and lead. With the tax saving season underway, investors can choose from among some of the consistent performers in the ELSS category such as Canara Robeco Equity Tax Saver, Fidelity Tax Advantage and Sundaram BNP Paribas Tax Saver. These schemes have figured in the list of platinum and gold grades consistently.
There has also been a major improvement in the performances of ICICI Prudential (I-Pru ) Tax Plan and HDFC Tax Saver over the previous quarters. While I-Pru Tax Plan has succeeded in moving up from silver to gold for the very first time this quarter, HDFC Tax Saver may have to work harder to regain the platinum grade.
Under the category of diversified equity schemes, a good number of funds have made it to the platinum grade for the very first time. These include
Birla Sun Life Midcap, UTI Opportunities, Templeton India Growth, HDFC Equity, ING Dividend Yield and Principal Large Cap.
Also racing way ahead in performance is I-Pru Discovery, which has been graded gold for the second consecutive quarter in a row. A fund based on a value style of investment, I-Pru Discovery has been highly acclaimed for its top notch performance in 2009. In fact, most ‘value’ funds such as Templeton India Growth, Tata Equity PE and UTI Master Value have shown a major improvement in their performances last year, especially during the last quarter. (For complete list of ratings, log on to www.etintelligence.com)
THE BEST FUND HOUSE
Reliance and IDFC continue to be the top two best fund houses for the second consecutive year in a row followed by HDFC, Birla Sun Life and DSP Blackrock. As a minimum of 1.5% of the total industry assets under management (AUM) forms one of the selection criteria for the best fund house, Canara Robeco, which otherwise tops the performance list with a score of 29.5, has not been considered in this category.
BEST FUND HOUSE - HOW WE DO IT
The number of schemes analysed by the ET Quarterly MF Tracker varies for each fund house. We thus consider the percentage of schemes falling under the platinum, gold, silver, bronze and lead grades for each fund house separately to ensure that there is a level playing field for all these fund houses. Each of the grades is assigned weights corresponding to their order of importance.
Thus, platinum gets the highest and lead the lowest of all weights. A weighted average score (WAS) is then arrived at for each fund house and the fund houses are ranked in the descending order of their WAS. Thus, the fund house with a higher percentage (and not number ) of total schemes in the platinum and gold grades will enjoy a higher WAS vis-à-vis the others.
Source:http://economictimes.indiatimes.com/Features/Investors-Guide/Equity-schemes-performance-stood-out-last-year/articleshow/5574502.cms?curpg=2
Posts
No comments:
Post a Comment