When analysed category wise, the maximum returns were delivered by the Gold ETFs, a huge 41.56% return per annum. S&P CNX Nifty (12.63%), Sensex (12.46%), Equity FMCG (11.72%), Equity banking (11.49%) and BSE Small Cap (10.73%) were others who managed to delivered handsome returns. But, sectoral fund categories (Technology and Auto) have delivered negative returns to the tune of 15.38% and 14.88% respectively.
A careful analysis of the performance of the existing 34
fund houses reveals that there are schemes, which have offered returns higher than stock markets despite the market mayhem. Interestingly, most of the outperformers are actually equity-based funds. And analysts are hopeful about other equity-based funds will also bounce back soon. Sharing his views with 4Ps B&M, Sudip Bandyopadhyay, CEO, Reliance Money avers, “Barring past two quarters, the returns from the diversified equity MF have been over 40% CAGR over past five years… we should understand equity per se is associated with risk; but we believe this is a temporary correction more to do with global factors than over our own economy and in the medium to long term we believe equities will definitely give better returns as compared to other assets classes.” His words justify the basic investment rule: if you want handsome returns, invest with a long term perspective.
Despite present market volatility, Assets Under Management (AUM) of the MF industry surged by 55% to Rs.5.05 trillion as on March 31, 2008 from Rs.3.26 trillion a year ago. In addition, more than 600 new schemes were launched during last year and as many as six brokerage houses are awaiting regulatory approval for commencing operations. Notwithstanding the present downward trend, estimated market surges in the near and distant future, are all set to compound the potential of the industry. Analysts expect to see an annual growth momentum of over 35% per annum, in years to come. The Boston Consulting Group (BCG) assesses that the asset base of the industry will touch $520 billion by 2015.
Yet, the present market volatility cannot be ignored. Combined with a global economic slowdown, fears of a US recession, deteriorating domestic fiscal scenario and of course, over dependence on foreign fund flow, market pundits continue to point toward uncertain times, and NAVs of major funds have crashed nearly 25-30%. Avers Ashok Jainani, VP, KSL, “The markets have turned volatile and reacted sharply to the crisis in global financial markets over the last three months… The NAVs of equity funds have dropped to reflect the turbulence in equity markets worldwide.”
But lower NAVs also appear as a blessing in disguise, as investors are now prudently considering the scenario as the best time to invest. Such investors, even if they don’t care for ‘statutory warnings’, the 4Ps B&M Best and Worst Mutual Funds list will serve as a ready reckoner about which funds have done well till now, and which have ripped apart investor hopes. Anand and his ilk can be just that much more future ready!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
A careful analysis of the performance of the existing 34
fund houses reveals that there are schemes, which have offered returns higher than stock markets despite the market mayhem. Interestingly, most of the outperformers are actually equity-based funds. And analysts are hopeful about other equity-based funds will also bounce back soon. Sharing his views with 4Ps B&M, Sudip Bandyopadhyay, CEO, Reliance Money avers, “Barring past two quarters, the returns from the diversified equity MF have been over 40% CAGR over past five years… we should understand equity per se is associated with risk; but we believe this is a temporary correction more to do with global factors than over our own economy and in the medium to long term we believe equities will definitely give better returns as compared to other assets classes.” His words justify the basic investment rule: if you want handsome returns, invest with a long term perspective.Despite present market volatility, Assets Under Management (AUM) of the MF industry surged by 55% to Rs.5.05 trillion as on March 31, 2008 from Rs.3.26 trillion a year ago. In addition, more than 600 new schemes were launched during last year and as many as six brokerage houses are awaiting regulatory approval for commencing operations. Notwithstanding the present downward trend, estimated market surges in the near and distant future, are all set to compound the potential of the industry. Analysts expect to see an annual growth momentum of over 35% per annum, in years to come. The Boston Consulting Group (BCG) assesses that the asset base of the industry will touch $520 billion by 2015.
Yet, the present market volatility cannot be ignored. Combined with a global economic slowdown, fears of a US recession, deteriorating domestic fiscal scenario and of course, over dependence on foreign fund flow, market pundits continue to point toward uncertain times, and NAVs of major funds have crashed nearly 25-30%. Avers Ashok Jainani, VP, KSL, “The markets have turned volatile and reacted sharply to the crisis in global financial markets over the last three months… The NAVs of equity funds have dropped to reflect the turbulence in equity markets worldwide.”
But lower NAVs also appear as a blessing in disguise, as investors are now prudently considering the scenario as the best time to invest. Such investors, even if they don’t care for ‘statutory warnings’, the 4Ps B&M Best and Worst Mutual Funds list will serve as a ready reckoner about which funds have done well till now, and which have ripped apart investor hopes. Anand and his ilk can be just that much more future ready!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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