SBI funds top both categories— equity diversified (first table) and tax planning schemes (second table)—proving that pedigree does count. Over a five-year time frame, Magnum Tax Gain has performed better than the top performing equity diversified scheme. To get consistent returns for your investment, stay invested for more than three years.
The Nifty-based index funds (third table) have bettered the Nifty over the past five years while the Sensex-based funds have matched the index. In the past five years equity mid caps (fourth table) as a category have fared better than the broad equity diversified category.
Balanced funds as a category are not much in favour, with wide disparity in the AUM of the top five in both balanced equity (fifth table) and balanced debt (sixth table) categories. Both UTI-Ulip and HDFC Prudence are old funds; barring them the others stack up an insignificant asset base to both categories.
The IT sector (third table) is facing turmoil from a strong rupee and is not as favourable a sector as it was until a few years ago. Fund of Funds (fourth table) try to pick the winners within an AMC’s fund portfolio and Franklin Templeton seems to have mastered the act with two funds in the top five. But in terms of performance it’s Kotak equity all the way.
TheTakeaways
With former ABN Amro Bank head, Romesh Sobti, taking over as the managing director & CEO of IndusInd Bank, funds have shown interest in the bank scrip
TVS Motors’ patent case in the courts against Bajaj Auto infused negative sentiments against the stock, with funds being net sellers.
TheTakeaways
Change in compounding frequencies makes a big difference to returns you get
Compounding in higher frequencies increases the effective yield
Reinvest the earnings from an investment as you receive them; your investment grows exponentially
Data source: NAVIndia
