Subprime woes gripping financial markets around the world may have led to the erosion of yields, including in India, but the country?s mutual funds (MFs) have posted an impressive performance compared to benchmark indices during the period.
Following volatile sessions day after day over the last one month, the 30-share Sensex of the BSE dipped 1.67% during the period, while returns from equity schemes look attractive at the moment, giving returns as high as 5.57% during the same period.
US subprime mortgage defaults have yanked the Indian market southwards. A month ago on July 13, the Sensex was at 15,272.72 points. Since then, it has lost 255 points or 1.67%. Sandesh Kirkere, CEO of Kotak Asset Management Company, said, ?It?s a combination of factors like diversification and holding of the cash component. The index does not hold any cash component, whereas MFs can hold cash. Moreover, these MF schemes are diversified in the market, having exposure across various sectors. ?
Among the pack of equity schemes, the JM Emerging Leader scheme, whose net asset value is around Rs 12.93, stands out, giving a return of 5.57%. Following closely is the Reliance Diversified Power sector scheme whose NAV is around Rs 46.75, and has given returns of 4.19%.
Other schemes in this category are: JM Basic, with returns of 2.76%: ICICI Prudential FMCG, giving returns of 2.48%; and CanInfrastructure, giving return of 2.03%.