MF NAVs make new highs, but selloff continues

More than a third of all equity schemes that are over five years old have already surpassed their previous net asset value (NAV) highs, reached in 2008. Despite this, mutual fund schemes continue to see redemptions.

Data from fund house tracker Value Research show out of 177 such equity schemes, 60 hit lifetime highs at the beginning of this week.

Anand Shah, equity head at Canara Robeco Mutual Fund, said, “Our schemes have already surpassed the previous peak of 2008. I see no reason why they will not be at lifetime highs. The same will be true for the industry.”

HDFC MF’s nine equity schemes have hit all-time highs. Seven schemes of Birla Sun Life MF and six each of Franklin Templeton, ICICI Prudential MF, Reliance MF and UTI MF have hit all-time highs.

There are 404 equity schemes. Of these, 227 are less than five years old. If one takes the entire lot, 173 schemes touched all-time high at the start of this week.
 

MORE FUN FOR FUNDS
Schemes	5-year return (%)	NAV (Rs )
Birla Sun Life Mid Cap Plan A	22.96	121.54
Birla Sun Life MNC	19.37	211.15
Franklin India Bluechip	21.88	223.96
Franklin India Prima Plus	22.81	235.2
HDFC Top 200	26.43	222.75
HDFC Equity	26.04	293.69
HDFC Taxsaver	19.77	248.8
ICICI Prudential Growth	18.84	139.58
Reliance Growth	23.86	513.27
Reliance Reg Savings Equity	27.22	33.47
UTI Equity	18.45	56.68
As on September 20                                    Source: Value Research

Navneet Munot, chief investment officer, SBI Mutual Fund, said, “I believe that in a high market situation, the money entring into mutual funds through systematic investment plans (SIPs) will not be impacted. The industry gets the major portion of inflows through the SIP route and not lump-sum amounts.’

Shah, in agreement with Munot, said investments through SIPs were quite robust and would continue despite the high NAVs.

As on August 31, the industry's total average assets under management rose 3.3 per cent to Rs 6.87 lakh crore from Rs 6.65 lakh crore last month.

However, equity schemes continued to see high redemptions in August. Overall net outflow from these during the current financial year is Rs 7,613 crore.