Small mid-cap funds outshine all equity schemes: CRISIL

Written By Unknown on Selasa, 28 Januari 2014 | 16.03

Small and mid-cap equity funds, as represented by the CRISIL – AMFI Small & Midcap Fund Performance Index, have given the highest returns among equity-oriented funds in almost all timeframes ended December 31, 2013 (see Table 1).

CRISIL computed the returns of equity-oriented funds for the latest quarter as well as longer time frames. The small and mid-cap category emerged as the chartbuster beating its large-cap, diversified and ELSS peers, and the category benchmark, CNX Midcap Index over two-year, three-year and five-year periods. In fact, for the quarter ended December, which saw all equity categories outperform their respective category benchmarks, the CRISIL – AMFI Small & Midcap Fund Performance Index generated absolute return of 19.21%, higher than not only the CNX Midcap Index's 15.34%, but also the broader-market barometer CNX Nifty's 9.92%.

What helped the small- and mid-cap funds excel? Better sector selection – specifically, higher allocation to sectors such as industrial products coupled with lower exposure to oil & gas and power in the latest quarter. The absolute returns for sectoral indices are S&P BSE Capital Goods (33.19%), S&P BSE Oil & Gas (7.52%) and S&P BSE Power (11.69%) compared to CNX Midcap Index (15.34%) over the quarter (see Table 2). Within the small and mid-cap category, CRISIL Fund Rank 1 funds (as of the quarter ended December 2013) had higher exposure to sectors such as pharmaceuticals, auto & auto ancillaries and were underweight banking & financial services, oil & gas and power over the three-year period.

At the fund house level, UTI Mutual Fund and Birla Sun Life Mutual Fund led the tally of top-ranked funds for the quarter ended December 2013 with eight funds each under CRISIL Fund Rank 1, followed by ICICI Prudential Mutual Fund with seven and IDFC Mutual Fund with five funds. The latest CRISIL Mutual Fund Ranking covers close to 90% of the average assets under management of open ended schemes at the end of December 2013. 

Unlike most other ranking models that are purely based on returns or net asset value (NAV), CRISIL Mutual Fund Ranking uses a combination of NAV and portfolio-based attributes for evaluation. This provides a single-point analysis of mutual funds, taking into consideration key parameters like risk-adjusted returns, asset concentration, liquidity, asset quality and asset size. The rankings also include categories that focus specifically on long-term consistency in performance. The ranks are assigned on a scale of 1 to 5, with CRISIL Fund Rank 1 indicating 'very good performance'. In any peer group, the top 10 percentile of funds are ranked as CRISIL Fund Rank 1 and the next 20 percentile are ranked as CRISIL Fund Rank 2. For further details on rankings and methodology, investors can refer to www.crisil.com.

Table 1: Category and Benchmark Returns (%) - quarter ended December 2013


Categories 3 months 6 months 9 months 1 Year 2 Years 3 Years 5 Years
Absolute Absolute Absolute Absolute Annualised Annualised Annualised
CRISIL – AMFI Large Cap 12.22 10.52 12.3 5.74 17.05 2.47 18.04
Fund Performance Index
CRISIL – AMFI Diversified 15.73 12.91 12.53 3.92 17.55 1.25 18.13
Equity Fund Performance Index
CRISIL – AMFI Small & 19.21 16.84 16.02 4.78 21.84 4.33 23.7
Midcap Fund Performance Index
CRISIL – AMFI ELSS 15.64 13.72 14.97 6.54 19.36 2.73 19.26
Fund Performance Index
CRISIL – AMFI Balance 14.72 10.55 11.23 4.35 16.14 4.21 18.24
Fund Performance Index
               
CNX NIFTY Index 9.92 7.9 10.94 6.76 16.71 0.91 16.32
CNX 500 Index 11.9 8.95 10.74 3.61 16.83 -0.18 16.43
CNX Midcap Index 15.34 9.93 9.05 -5.1 14.87 -3.05 16.65
CRISIL BalanceEx 7.3 4.64 7.94 6.05 13.37 3.26 13.19
 

Table 2: Sectoral Indices Return (%) - quarter ended December 2013 


Scheme/Index Name 3  Months Absolute 1 Year Absolute 2 Years Annualised 3 Years Annualised
CNX Auto Index 12.88 9.41 24.77 7.9
CNX Bank Index 18.38 -8.73 19.47 -1.16
CNX Finance Index 14.57 -7.32 18.62 0
CNX Pharma Index 3.72 26.51 29.08 14.49
S&P BSE Capital Goods 33.19 -5.56 12.76 -12.67
S&P BSE Oil & Gas 7.52 3.71 8.3 -5.89
S&P BSE Power 11.69 -14.57 -2.68 -17.12
CNX Midcap Index 15.34 -5.1 14.87 -3.05
 

Table 3 - CRISIL Fund Rank 1 Schemes


Large Cap-oriented Equity Funds Long Term Income Funds
Birla Sun Life Top 100 Fund HSBC Flexi Debt Fund
Canara Robeco Large Cap+ Fund IDFC Dynamic Bond Fund
ICICI Prudential Top 100 Fund SBI Dynamic Bond Fund
UTI India Lifestyle Fund  
  Short Term Income Funds
Diversified Equity Funds DSP BlackRock Short Term Fund
Birla Sun Life India GenNext Fund HDFC Short Term Opportunities Fund
ICICI Prudential Dynamic Plan Morgan Stanley Short Term Bond Fund
ICICI Prudential Exports and Other Services Fund Sundaram Select Debt ST Asset Plan
Tata Ethical Fund Tata Short Term Bond Fund
UTI MNC Fund  
  Ultra Short Term Debt Funds
Small and Mid-cap Equity Funds Religare Invesco Credit Opportunities Fund
Birla Sun Life MNC Fund UTI Floating Rate Fund - STP
Franklin India Smaller Companies Fund UTI Treasury Advantage Fund
Mirae Asset Emerging Bluechip Fund  
  Liquid Funds
Thematic - Infrastructure Funds HSBC Cash Fund
Birla Sun Life Infrastructure Fund ICICI Prudential Liquid Plan
  Morgan Stanley Liquid Fund
Equity-Linked Savings Scheme (ELSS) Peerless Liquid Fund
Axis Long Term Equity Fund  
BNP Paribas Tax Advantage Plan Consistent Performers - Equity Funds
  Birla Sun Life India GenNext Fund
Index Funds Birla Sun Life MNC Fund
Kotak Nifty ETF ICICI Prudential Discovery Fund
  IDFC Premier Equity Fund
Balanced Funds Reliance Equity Opportunities Fund
ICICI Prudential Balanced Advantage Fund SBI Emerging Businesses Fund
  UTI Equity Fund
Monthly Income Plan – Aggressive UTI MNC Fund
Birla Sun Life MIP II - Wealth 25 Plan UTI Opportunities Fund
FT India Monthly Income Plan  
  Consistent Performers - Balanced Funds
Monthly Income Plan – Conservative ICICI Prudential Balanced Fund
Birla Sun Life MIP II - Savings 5 Plan  
  Consistent Performers - Debt Funds
Long Term Gilt Funds IDFC Dynamic Bond Fund
IDFC G Sec Fund - Investment Plan UTI Bond Fund
IDFC G Sec Fund - PF Plan  
 

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