It is TRUE that Many Mutual Funds have beaten the benchmark by just few percentage points while you have seen the Euphoria in stocks and they have probably given 200% to 300% returns within the last 12 months.
I decided to see which Diversified Equity Funds [No I don’t believe in SECTORAL Funds] have beaten the Benchmark Indices. The criteria for my study was simple, any fund that has seen an earlier bear market qualified for the study. I then compared NAVs recorded by these funds on Jan-09-2008 and now. Here is the outcome of the study.
Name of the Scheme – High NAV 2008 – High NAV 2009[Latest]
DSP BR Equity Fund 66 /53
DSP BR 100 Fund 94 / 86.84
Sundaram S.M.I.L.E 34.23 / 30 [An exception to the Rule, because it has given 112% returns in past 12 months]
SBI Magnum Contra – 62.08 / 52.23
Birla Front Line Equity – 91.75 / 74.88
Birla Midcap A – 116 / 98
DSP T.I.G.E.R – 61.29 / 44.07
SBI Magnum Multiplier Plus – 88 / 71
Reliance Growth Fund – 478 / 399
Tata Pure Equity fund – 101 / 85
Templeton India Growth Fund – 107 / 100
HSBC Equity Fund – 117 / 92 [Another exception since we had recommended it]
None of the above have managed to BEAT their Jan-2008 NAV Levels. HDFC Top-200 and HDFC Equity are the only ones that have managed to BEAT the market by 23% 🙂 What it implies is, when the market falls, the NAV of these funds have fallen lesser in comparison. Had the fund manager not gotten carried away by the ICICI Saga, he would have performed much better. He jumped in & out of ICICI at wrong levels else, we could be seeing 30% OUTPERFORMANCE by these funds.
Well, we need your help. Do you know of any fund that has been in existence for 5 years and has been able to beat Jan-2008 NAV now when the SENSEX is still 23% away from its previous HIGHS ? Post a Comment and we will cover it.