Banking, FMCG funds top MF return charts in 2012

Mutual funds focused on banking, FMCG and midcap stocks topped the return charts for investors in 2012, while those investing in IT stocks fared the worst, albeit with modest gains.

As per an analysis of net asset values for all mutual fund schemes during 2012, the banking funds have an average 55% return in the year, as against appreciation of 26-28% in the broader benchmark indices.

The FMCG funds came a close second with average return of 48% in 2012, followed by midcap schemes (41%), multicap funds (33%) and pharma funds (32%).

Tax funds, a popular avenue for saving taxes, gained 31% in calendar year 2012.

"Some sectors which gave extraordinary returns in this period include Banking, FMCG and Consumer Durables. Stocks in sectors such as IT, Power and Oil & gas didn't do as well in 2012. Largely, investors currently favour stocks in consumption sector give some of macro winds," said Atul Kumar, Senior Fund Manager, Quantum MF.

Infrastructure equity funds rode on the back of market rebound to give investors 25% average gain in 2012. International equity funds (14%), arbitrage funds (9%) and IT funds (6%) were the poorest performers in the year gone by as their chosen themes did not play out well as the winners.

Gold funds, which saw copious inflows, gave an average 11% gain in 2012 as the precious metal prices inched up.

In the fixed income fund space, Gilt medium and long term funds walked away with the honors of best average gains (10.5%), followed by income funds (10.1%), short-term income schemes (9.8%), liquid funds (9.2%) and gilt short-term funds (8.3%).

"Most short-term debt funds and dynamic bond funds have also increased duration and exposure to government securities to take advantage of a fall in yields," said Sachin Jain, analyst at ICICIdirect.Com.

Among the hybrid fund categories, equity-oriented funds gave an average 27% gains while the debt oriented ones mirrored the fixed income gains of around 13%.