Index funds fail to match pace of indices

Mumbai, March 21 | Updated: Mar 22 2006, 06:44am hrs
It seems that many of the fund managers are also finding it difficult to match the recent rapid rise of the benchmark indices.

In the last three months, while the Sensex and the Nifty have gained 16.77% and 15.57%, respectively, most of the index funds have under performed the rise of the benchmark indices.

According to Value Research, out of a total of 18 schemes dedicated to benchmark indices --Sensex or Nifty-- 12 schemes have failed to match the rise of the indices, with more Nifty funds making it to the list than Sensex schemes.The worst performer among the lot has been Reliance Index Nifty, which has been benchmarked against the Nifty and which has given returns of only 10.02% in the last three months.

Birla Index, Magnum Index, CanIndex and LICMF Index Nifty - all benchmarked against the Nifty - has given returns of less than 15% in the same period. Principal Index and Franklin India Index NSE Nifty have also failed to match the rise of the Nifty.

One-On-One

12 schemes have failed to match the rise of the indices
Worst performer among the lot has been Reliance Index Nifty
Principal Index and Franklin India Index NSE Nifty have also failed to match the rise of the Nifty