The data from Value Research shows that, average category returns of banking funds and large-cap funds have given returns of 15.16% and 10.54%, respectively in the last one year.
Of a total 364 open-ended equity schemes, around 30% have given negative returns in the last one year. Of the 108 schemes which have lost money for investors, 21 equity schemes have given negative returns in excess of 10%, with HSBC Infrastructure Fund giving the worst returns at 21.30%, in the last one year, shows the data from Value Research.
The worst performance of the schemes came from categories such as infrastructure sector, small cap funds, mid cap funds and international funds. Out of 22 mid-cap schemes, 17 schemes continue to give negative returns, while Axis Midcap Fund have have been top performer with returns of 5.60% in the last one year.
The returns have been calculated as on May 24, 2019.
In the mid-cap segment, schemes such as Baroda Mid cap and Edelweiss Midcap Fund have dipped by 8.32% and 6.76%, respectively in the last one year. The S&P BSE Midcap TRI index have given returns of -3.60% in last one.
Gopal Agrawal, senior fund manager at DSP Mutual Fund, says: “If we look at the midcap index it has also given negative returns and that could be one of the reasons for schemes underperformance. However, going forward as the yields are coming down, there is a hope of rate cut. Transmission of rates to the customers will lead to revival in mid and small cap stocks. I think now valuations difference between large and midcap have shrunk considerably, so outlook remains positive.”
If we look at the performance of small cap funds, out of 14 small-cap funds, only one fund have managed to give positive returns in the last one year. While HSBC Small Cap fund and Sundaram Small Cap fund have given negative returns of 16.21% and 14.14%, in the last one years shows the data from Value Research. While BSE Smallcap TRI Index have given negative returns of 12.59% in the last one year.
The data from Value Research shows that, average category returns of banking funds and large-cap funds have given returns of 15.16% and 10.54%, respectively in the last one year. Neelesh Surana, CIO at Mirae Asset Global Investments (India), says: “From the large-cap perspective, in the the last one and half year only few stocks were leading the rally, but now polarisation of markets have blurred and we are seeing broad based rally, which is positive.” In the last one year, the Sensex TRI have given returns of 15.33%, shows the data from Value Research.
Volatility in the equity markets in the last few months have seen slower inflows into equity schemes. The data from Association of Mutual Funds in India (Amfi) showed that the monthly inflows into equity schemes for the month of April stood at Rs 4,608.74 crore lowest in last 31 months.
Market participants also say that in the last few months, there has been very low participation from lump-sum investors, while flows through systematic investment plans (SIPs) continue to remain strong. The data from Amfi shows that, in April contribution of SIPs stood at over `8,238 crore. In the last financial year, total contribution of SIPs stood at `92,693 crore. In the financial year 2017-18 the contribution of SIPs was `67,190 crore while in 2016-17 it was `43,921 crore.