Mumbai, Oct. 29: Only three of the 30 categories of mutual funds have reported higher returns than the sensex in this year. The three are banking funds, other speciality funds and index funds. All are equity-oriented funds.
Between December 29, 2006 and October 26, 2007, the year-to-date return of the sensex stood at 39.57 per cent.
During this period, banking funds had a return of 48.87 per cent, other speciality funds, 47.16 per cent and equity index funds, 41.36 per cent.
Diversified equity funds, with returns of 38.15 per cent, failed to beat the sensex.
Dhirendra Kumar, CEO of Value Research Online, told The Telegraph: “We are always optimistic about the equity-diversified funds. We should not forget that the fortune of sectoral funds could reverse quickly in a volatile market. We suggest the investors to look for diversity across capitalisation, and invest in funds that would allocate the money across largecap, midcap and smallcap stocks as well.”
Equity-oriented sectoral funds fall into five categories: banking, technology, FMCG, pharma and auto.
Among banking funds, the best performer is the Reliance Banking Fund which gave a return of 49.31 per cent.
It is followed by UTI Banking Sector Fund, with a return of 48.44 per cent.
In specialty funds, the topper is Reliance Diversified Power Sector Fund which gave a return of 86.62 per cent.
Second is JM Financial Services Sector Fund which fetched 59.23 per cent, followed by JM Telecom Sector Fund with a score of 38.84 per cent.
In index funds, Banking BeES is first with a return of 46.82 per cent. It is followed by ICICI Prudential Index Fund at 45.76 per cent and Birla Index Fund with returns of 45.14 per cent.