New Delhi: Mutual funds are considered a better investment option due to relatively better safety of capital, but they have also scored over the direct stock market investments in terms of returns to investors.
As per a performance analysis of stock market benchmarks and mutual fund equity schemes, as many as 50 large equity MF schemes, with an average asset size of at least Rs 1,000 crore, have given better returns than the market barometer Sensex during the first quarter of 2012.
While the stock market benchmark index Sensex gained 12.6 percent during the January-March 2012 quarter, the surge was higher for a total of 50 MF schemes and the top three performers belonged to Reliance Mutual Fund.
The returns were over 20 percent for this period for as many as 11 such funds, including five Reliance MF schemes.
Even for the six-month period ending March 31, 2012, the returns were higher than Sensex for as many as 29 schemes.
Asked about the robust performance of Reliance MF schemes, Reliance Capital Asset Management CEO Sundeep Sikka said: "We had made some changes in our portfolio and had aligned our portfolio according to market conditions, as a result of which our funds were able to post good returns."
While judging a MF scheme, investors should go for a fund house of fund manager who is able to manage the volatility of the markets and has a long term track record of giving good returns, Sikka noted.
The top three performers in the equity mutual fund space were from Reliance MF. Reliance Tax Saver (ELSS) fund posted returns of 26.07 percent, followed by Reliance Banking Fund with returns of 26.06 percent and Reliance Diversified Power sector fund with returns of 22.94 percent.
Others in top 10 included HDFC Mid Cap Opportunities Fund (ranked fourth with returns of 22.71 percent), ICICI Pru Discovery Fund (5th, 22.57 percent), Reliance Vision (6th, 22.44 percent), DSP BlackRock Small and Mid cap fund (7th, 22.18 percent), UTI Infra fund (8th, 21.71 percent), IDFC Sterling equity fund (9th, 21.36 percent) and Reliance Equity Opportunities fund (10th, 21.01 percent).
In the first quarter of this year the BSE benchmark index Sensex posted returns of 12.61 percent, while the wide-based Nifty gave returns of 14.52 percent. The BSE 100 index rose by 15.59 percent during this period.
First Published: Monday, April 23, 2012, 16:38