Mutual funds: Not mutually beneficial

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Mumbai | Updated: Oct 29, 2018 8:32 AM

Close to 65% of a total 380 mutual fund equity schemes have posted negative returns in the last one year. A number of the worst-performing funds are infra sector funds.

 The average returns of Mid-cap funds is -8.58% and small cap schemes is -11.11%, data from Value Research showed.PSU funds have also performed poorly as have small cap funds.

Close to 65% of a total 380 mutual fund equity schemes have posted negative returns in the last one year. A number of the worst-performing funds are infra sector funds with HSBC Infrastructure Fund reporting a negative return of 30.7%, data from Value Research showed.

PSU funds have also performed poorly as have small cap funds. The infrastructure sector saw its category average return at a negative 13.8%, with all the 23 schemes reporting negative returns. Over the past year, the Small Cap index has fallen by more than 31% while the Nifty Mid Cap index has lost 16%.
Again, only two equity schemes of a universe of 35 mid-cap and small-cap equity schemes have given positive returns over the last one year. The returns are as on October 15, 2018.

The average monthly inflows into equity schemes in H1FY19 fell to Rs 10,080 crore from Rs 14,200 crore in 2017-18, data from Association of Mutual Funds showed.

Equity funds (which include equity, ELSS and arbitrage funds) saw inflows of Rs 11,251 crore in September; this is higher than the Rs 5,923 crore in August which was an 18-month low.

SBI PSU Fund, HDFC Infrastructure Funds, Sundaram Small Cap Fund and Aditya Birla Sun Life Infrastructure Fund are among the worst-performing equity schemes over the past year having lost anywhere between 21% and 24%. Several large cap funds such as JM Core 11 Fund, IDBI India Top 100 Equity fund and Essel Large Cap Equity Fund were laggards among the large-cap category giving negative returns in the range of -6.7 to -9.7%, for instance—-have done badly.

In the mid-cap segment, schemes such as BNP Paribas Midcap Fund and SBI Magnum Midcap Fund have dipped by 15.20% and 13.65%, respectively, in the last one year.

The average returns of Mid-cap funds is -8.58% and small cap schemes is -11.11%, data from Value Research showed.

With about 80% of all stocks in the red since the start of 2018, a study by FE shows that out of 733 companies with market capitalisation of Rs 1,000 crore and more, 423 companies have lost more than 20% of their value since January. Categories like technology and pharma are among few which have given positive returns in the last one year, largely due to the rupee depreciation.

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