Returns from closed-ended funds prove a mixed bag

The year 2014 saw a record number of new closed-ended schemes raise money from Indian investors. The returns offered by 16 of these that have completed one year show mixed trends.Of these, four (all from the stable of SundaramMutual Fund) under the Select Micro Cap series have delivered the best returns, as each has more than doubled.  

The returns have far-exceeded that of S&P BSE Small Cap Index, against which they were benchmarked. The Small Cap index is up nearly 60 per cent in the past one year. Schemes offered by Axis MF, SBI MF and Reliance have also managed to outperform their respective benchmarks.

The one-year return for these schemes is in the range of 57-75 per cent,while their benchmarks have gained between 35 per cent and 51 per cent. IDFC MF (Equity Opportunity Fund) and four schemes by ICICI Prudential Mutual Fund (three in the value series and one is equity savings) are next in line in terms of performance.

The returns these funds have generated over the past one year vary between 51-58 per cent.Their benchmarks returned 32-37 per cent.