Large-cap and multi-cap MF schemes post negative returns in last one year

By: | Published: July 29, 2016 6:36 AM

In the last one year, when Sensex has yielded returns of 2.7%, funds like Canara Robeco Equity Diversified Funds-Regular Plan, Taurus Starshare Fund- Regular Plan, Sundaram Growth Fund- Regular Plan and Union KBC Equity Fund among others have given negative returns.

Investors, Mutual funds, investments, Liquid funds, gold pricesIn the last one year, when Sensex has yielded returns of 2.7%, funds like Canara Robeco Equity Diversified Funds-Regular Plan, Taurus Starshare Fund- Regular Plan, Sundaram Growth Fund- Regular Plan and Union KBC Equity Fund among others have given negative returns.

Even as broader equity markets have delivered low single-digit returns in the last one year, several large-and multi-cap mutual fund schemes have posted negative returns. Underperformance of a few schemes was largely due to wrong sectoral call taken by fund manager in the past few months, say industry experts.

In the last one year, when Sensex has yielded returns of 2.7%, funds like Canara Robeco Equity Diversified Funds-Regular Plan, Taurus Starshare Fund- Regular Plan, Sundaram Growth Fund- Regular Plan and Union KBC Equity Fund among others have given negative returns.

G Pradeepkumar, CEO at Union KBC Asset Management Company (AMC), says, “It is largely to due to with certain calls which have not worked for us, particularly banking sector. However, now we have repositioned our portfolio from value focus to more growth investing. Now we will be looking at companies, that has strong return on capital employed, cash surplus with low debt and other important financial parameters. Slowly short term returns have started improving and we expect them to surge further.” In the last one year, Union KBC Equity Fund have given returns of -0.63%, says data from Value Research.

In the multi-cap segment, Canara Robeco Equity Diversified Funds-Regular Plan and Taurus Starshare Fund- Regular Plan have given returns of -2.36% and -1.57% respectively in the last one year. While in the large-cap segment, in the last one year Sundaram Growth Fund-Regular Plan and IDFC Imperial Equity Fund-Regular Plan have given returns of -2.42% and -0.42%, respectively.

“Though broader equity markets have surged in the last few months certain sector like PSU Bank Index, IT and Pharma stocks have given negative returns. Underperformance in the scheme might be only due to the large investments made into some of the stocks from these sectors. I believe that, certain calls in PSU banks and some capital good sector have impacted the returns,”said a fund manager on condition of anonymity.

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