Weakening rupee has provided an impetus to IT stocks. Even if IT funds (third table) are gaining ground, investors are skeptical considering the extent of losses they incurred in the past two years. There is a huge variation in returns of pharma funds. JM Healthcare managed to stay afloat but Magnum SFU has underperformed its category average.
With three of the top five funds being less than three years old, the relatively newer plans are giving serious competition to the older lot. However, the older funds continue to hold the top slots by delivering the highest one-year returns. Taurus Libra Taxshield, with the least AUM, earned its investors enviable returns and also outperformed the equity diversified funds.
While fund of funds as a category matched average returns of equity diversified funds, they are also the least affected by the ongoing turmoil in the markets. The category also outperformed pure equity funds by losing the least in the past six months.
The takeaways
Top five fund houses account for 52% of all investments in mutual funds
There are 35 fund houses in India
After shrinking in January and March, AUM rose impressively in April and May this year
