In terms of sectoral returns, the infrastructure sector saw its category average at -17.58%, with all the 23 schemes giving negative returns.
Of a total 370 equity schemes, nearly 69% gave negative returns in the last one year. Of 254 schemes where investors lost money, 90 gave negative returns in excess of 10%, with HSBC Infrastructure Fund giving the worst returns at (-) 32.55% during the period, showed data from Value Research.
The worst performance of schemes came from infrastructure sector, public sector undertaking funds and small cap funds. In terms sectoral returns, the infrastructure sector saw its category average at -17.58%, with all the 23 schemes giving negative returns. Even for the small cap funds category, the average was -16.22%, with all the 14 funds giving negative returns. Returns are as on December 7, 2018. However, if we look at the performance of two years, out of 370 equity schemes, only 14 gave negative returns.
HDFC Infrastructure Funds, Sundaram Small Cap Fund, SBI PSU Fund and Reliance ETF PSU Bank BeES are among the worst-performing equity schemes over the past year, having lost anywhere between 30% and 25%. Several of the active large cap funds such as JM Core 11 Fund, IDBI Focused 30 Equity fund and Essel Large Cap Equity Fund were laggards among the large cap category, giving negative returns in the range of 5.3% to 6.19%.
In the mid-cap segment, schemes such as BNP Paribas Midcap Fund and SBI Magnum Midcap Fund dipped 17.75% and 17.32%, respectively, in the last one year. Average returns of mid cap funds are -10.77%, Value Research data showed.
The Sensex has grown 5.14% in the last one year, but average returns of large-cap funds stand at 2.09%.
With about 79% of all stocks in the red since the start of 2018, a study by FE shows out of 718 companies with market capitalisation of Rs 1,000 crore and more, 411 companies lost more than 20% of their value since January. Categories like technology and pharma are among few which gave positive returns in the last one year, largely due to the rupee depreciation. Data from Value Research show that the category average of technology and pharma stood at 24.89% and 0.09% respectively.
The Sensex gained 5.14% in last one year, but was driven by a handful of stocks. However, there was a fall in broader indices in the last few months, which has led to slower average monthly inflows into equity schemes.
The data from the Association of Mutual Funds in India (Amfi) show that the average monthly inflows into equity schemes for the period of April-November fell to Rs 10,756 crore, from Rs 14,200 crore in 2017-18.
Equity funds (which includes equity, ELSS and arbitrage funds) saw inflows of Rs 10,790 crore in November; the lowest in the past three months. In September and October, equity schemes saw inflows of Rs 11,251 crore and Rs 14,783 crore, respectively.
Even the contribution of systematic investment plans (SIPs) remained stagnant in November at Rs 7,985 crore, the same for October. The contribution of SIP for this financial year till November is around Rs 60,457 crore, show Amfi data.
Market participants say investors have started stopping their SIPs in equity funds due to unstable equity markets. A CEO of one of the mid-sized fund houses said, “Despite a sharp fall in equity markets in the last few months, investors still have faith in SIPs. But in November, we saw the same amount coming in through SIPs as was in October, which indicates that many investors might have stopped their SIPs.” In 2016-17, total SIP contribution in the industry was Rs 43,921 crore.
It increased to Rs 67,190 crore in 2017-18, according to Amfi data.