After facing redemption pressure during the second half of FY11, the mutual fund industry appears to have clawed its way back. Average assets under management have surged 6% in the April-June quarter after two straight quarters of decline. The largest domestic fund house — Reliance Mutual Fund — has, however, recorded a drop in its assets under management or AUM. Smaller fund houses such as Sahara, Baroda Pioneer and Taurus Mutual fund grew their AUM by more than 50%.
Equity markets remain under pressure, but rising interest rates have helped the industry mobilise funds with strong inflows into fixed maturity plans FMPs. In the quarter to June, mid-cap oriented schemes did better than their large-cap counterparts. On average, mid-cap funds generated an absolute three-month return of close to 2.1%. This even as the broader market indices like Sensex and Nifty fell 3% over the same period. However, certain diversified equity schemes clocked higher returns in the quarter.
These are average returns for the entire category of equity mutual funds and for those anxious to know how their schemes have fared during this period, the ET Quarterly Mutual Fund Tracker brings you a performance report of mutual fund schemes across the five broad categories of equity diversified, equity linked savings schemes (ELSS), balanced, monthly income plans (MIP) and debt.
We analysed a total of 317 schemes this quarter and graded them according to their performance as Platinum, Gold, Silver, Bronze and Lead. Only those schemes which have been on offer for at least three years were considered for our risk-return analysis. In the ELSS category, Canara Robeco Equity Tax Saver and HDFC Tax Saver continue to be the top performers for a third consecutive quarter.
In fact, Canara Robeco Equity Tax Saver has set a record by retaining its Platinum grade for the 11th quarter in a row. In the case of equity diversified schemes, mid-cap and multi-cap oriented schemes did better than their large-cap counterparts, reflecting the outperformance of the BSE 500 index over the benchmark Sensex. Mid-cap funds such as Sundaram Select Midcap, ICICI Prudential Discovery, HDFC Midcap, Birla Midcap, DSPBR Micro-cap and new entrant Birla SL Pure Value have seen a marked improvement in their ratings.
Otherwise, there has been little change in the names or the tally of Platinum winners during the quarter as compared to Mar '11 quarter. Many new schemes are part of our analysis this time. They include Birla SL Pure Value, ICICI Pru Focused Blue Chip Equity, LIC Nomura MF Top 100, Mirae Asset India Opportunity, Morgan Stanley A.C.E, Reliance Quant Plus, JM Core 11, HDFC Infrastructure and Tata Growing Economies.
BEST FUND HOUSE
HDFC, which bagged 10 Platinum medallions, is the best fund house in our rankings for the 10th consecutive quarter. It has proved to be a cut above other fund houses. Birla Sun Life has emerged as the second-best performing fund house for the quarter with four Platinums.
Based on weighted average scores, Canara Robeco is the top fund house. However, since it does not fulfill the criteria of a minimum of 1.5% of the total industry AUM, it has not been considered in this category. Going ahead, it will be interesting to see Canara Robecco's performance as its top fund manager has moved to rival BNP Paribas.
METHODOLOGY FOR THE BEST FUND HOUSE
The number of schemes analysed by the ET Quarterly MF Tracker varies for each fund house. We consider the percentage of schemes falling under Platinum, Gold, Silver, Bronze and Lead grades for each fund house separately to ensure that there is a levelplaying field for all.
Each of the grades is assigned a weight corresponding to its order of importance. Thus, Platinum gets the highest and Lead the lowest of weights. A weighted average score (WAS) is then arrived at for each fund house and the fund houses are ranked in 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-Ã -vis the others.
Source: http://articles.economictimes.indiatimes.com/2011-08-08/news/29864596_1_mid-cap-funds-reliance-mutual-fund-sundaram-select-midcap/2
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