Only one in seven equity schemes managed to outperform the indices during the latest rally
Only one in every seven equity schemes has managed to outperform the broad market indices in the current rally.
Of the 107 equity schemes managed by private and institutional mutual funds, only 15 have outperformed the 25.19 per cent returns posted by the BSE-500 index in the course of the current rally between April 30 and June 20, 2003.
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The underperformance of nearly 86 per cent of the equity schemes can be tracked to the failure of fund managers to visualise emerging trends in PSU, bank and FMCG stocks.
Between April 30 and June 20, the BSE PSU index has appreciated 42.31 per cent, while BSE FMCG index has risen 33.60 per cent.
Of the 109 equity schemes, 17 have outperformed the BSE-500 and 48 outperformed the BSE Sensex.
As many as seven IT sector funds have recorded declines in value ranging between 2-11 per cent.
Eighteen schemes have appreciated between 20 and 25.19 per cent, while 51 others appreciated between 10 and 20 per cent.
Funds with diversified holdings showed a higher appreciation compared to index or sectoral funds. The only exception was the UTI Petro fund and SBI