Consumer goods, pharma funds led MF gainers in May
Friday, 4 June 2010
MUMBAI, June 3 (Reuters): Stock funds that invest in consumer goods and pharma sectors led mutual fund gainers in May, while diversified equity funds fell in line with the benchmark as key stock indices dropped on euro zone worries.
Funds which focus on investing in the consumer goods space returned an average 2.47 per cent during the month, as the BSE FMCG index rose 3.57 per cent, outperforming the BSE Sensex that fell 3.5 per cent, data from global fund tracker Lipper showed.
"Lower interest rates, rising economic growth and, in turn, employment, are contributing to demand for consumer goods," said Chintamani Dagade, senior research analyst at Morningstar India.
India's economy grew an annual 8.6 per cent in the March quarter from a year earlier, driven by robust manufacturing sector on the back of government and consumer spending, government data showed Monday.
However, diversified equity funds, which form the largest category of stock funds by number and assets, fell 3.62 per cent on average, a tad more than the fall in the BSE Sensex.
The benchmark index posted its first monthly decline since January as investors turned risk-averse on worries the debt crisis in the euro zone could hamper global economic recovery.
A significant exposure of such funds to mid- and small-cap companies also hurt unit values as the BSE Mid-cap index dropped nearly 5 per cent while the small-cap index fell 7.17 per cent during the month.
These funds had nearly 40 per cent allocated to small- and mid-cap companies as of April-end, data from fund tracker ICRA Online showed.
Funds which focus on investing in the consumer goods space returned an average 2.47 per cent during the month, as the BSE FMCG index rose 3.57 per cent, outperforming the BSE Sensex that fell 3.5 per cent, data from global fund tracker Lipper showed.
"Lower interest rates, rising economic growth and, in turn, employment, are contributing to demand for consumer goods," said Chintamani Dagade, senior research analyst at Morningstar India.
India's economy grew an annual 8.6 per cent in the March quarter from a year earlier, driven by robust manufacturing sector on the back of government and consumer spending, government data showed Monday.
However, diversified equity funds, which form the largest category of stock funds by number and assets, fell 3.62 per cent on average, a tad more than the fall in the BSE Sensex.
The benchmark index posted its first monthly decline since January as investors turned risk-averse on worries the debt crisis in the euro zone could hamper global economic recovery.
A significant exposure of such funds to mid- and small-cap companies also hurt unit values as the BSE Mid-cap index dropped nearly 5 per cent while the small-cap index fell 7.17 per cent during the month.
These funds had nearly 40 per cent allocated to small- and mid-cap companies as of April-end, data from fund tracker ICRA Online showed.