Small, mid-caps help equity funds beat Sensex
Wednesday, 5 May 2010
NEW DELHI, May 4 (Reuters): Most of India's diversified equity funds outperformed the benchmark index in April, as a significant exposure to small- and medium-sized firms and sectors like financials boosted unit values.
Such funds, which form the largest category of equity funds in India by number and assets, gained 2.72 per cent on average, outperforming the BSE Sensex which inched up 0.18 per cent, data from global fund tracker Lipper showed.
"As the large-cap indices became fairly valued, fund managers shifted focus to select mid- and small-cap shares, given their attractive valuations," said Chintamani Dagade, senior research analyst at Morningstar India.
Diversified equity funds had 44.5 per cent of their assets in mid- and small-cap companies, according to data from ICRA Online, which helped funds as the BSE Mid-cap index gained 5.56 per cent and the small-cap index rose 8.35 per cent.
Two such funds -- HSBC Small Cap Fund and Escorts Growth -- emerged as top return generators, gaining 12.2 per cent and 10.42 per cent respectively.
Such funds, which form the largest category of equity funds in India by number and assets, gained 2.72 per cent on average, outperforming the BSE Sensex which inched up 0.18 per cent, data from global fund tracker Lipper showed.
"As the large-cap indices became fairly valued, fund managers shifted focus to select mid- and small-cap shares, given their attractive valuations," said Chintamani Dagade, senior research analyst at Morningstar India.
Diversified equity funds had 44.5 per cent of their assets in mid- and small-cap companies, according to data from ICRA Online, which helped funds as the BSE Mid-cap index gained 5.56 per cent and the small-cap index rose 8.35 per cent.
Two such funds -- HSBC Small Cap Fund and Escorts Growth -- emerged as top return generators, gaining 12.2 per cent and 10.42 per cent respectively.