With increasing depth in mutual funds, emergence of new themes and of course, volatility in fund managers behaviour themselves , our analysts spend a lot of time researching funds to recommend each quarter.
The same recommendations are also used by our mutual fund research product, Investactive MF, which gives customized recommendations to investors looking at saving for the medium to long term via the mutual fund route.
The table below presents the performance of these recommendations over the last few quarters –
| 1 Year Returns : Track Record for Quarterly Equity Funds Picks by Investactive MF | |||||
| 1 Year Returns in % and Recommended Start Date | |||||
| Category | |||||
| LARGECAP CATEGORY | Mar-16 | Jun-16 | Sep-16 | Dec-16 | Mar-17 |
| Investactive MF Funds Average | 27.30 | 22.36 | 15.17 | 35.29 | 13.50 |
| Category Average | 23.81 | 18.52 | 14.16 | 32.77 | 11.53 |
| Outperformance Over Category | 3.49 | 3.84 | 1.01 | 2.52 | 1.97 |
| Nifty 50 | 20.55 | 15.13 | 13.45 | 29.19 | 12.06 |
| Outperformance Over Index | 6.75 | 7.24 | 1.72 | 6.10 | 1.44 |
| MIDCAP CATEGORY | Mar-16 | Jun-16 | Sep-16 | Dec-16 | Mar-17 |
| Investactive MF Funds Average | 32.76 | 20.92 | 20.39 | 47.38 | 13.61 |
| Category Average | 33.72 | 25.25 | 18.87 | 44.55 | 12.89 |
| Outperformance Over Category | -0.96 | -4.33 | 1.52 | 2.84 | 0.72 |
| Nifty Midcap 100 – TRI | 35.43 | 28.55 | 16.35 | 47.76 | 11.37 |
| Outperformance Over Index | -2.66 | -7.63 | 4.04 | -0.37 | 2.24 |
| MULTICAP CATEGORY | Mar-16 | Jun-16 | Sep-16 | Dec-16 | Mar-17 |
| Investactive MF Funds Average | 27.6 | 22.3 | 20.5 | 39.3 | 12.8 |
| Category Average | 27.5 | 20.6 | 16.7 | 35.9 | 11.0 |
| Outperformance Over Category | 0.13 | 1.68 | 3.84 | 3.35 | 1.76 |
| NIFTY 200 – TRI | 25.1 | 18.9 | 16.8 | 34.3 | 12.4 |
| Outperformance Over Index | 2.53 | 3.41 | 3.67 | 5.03 | 0.33 |
HIGHLIGHTS
- On an average, our recommendations have beaten the indices as well as the category average performances comfortably – in the largecap and the Multicap space.
- However, the recommendations for Midcaps have suffered – not only have our recommendations underperformed but the category itself has underperformed the indices. Our analyst suggests that the 1 year timeframe (which we have used for the table) is too short period and that we should see performance at least over a 3 year period as midcaps are extremely volatile as a category.
- Remember that a difference of just 2% per annum could mean a huge difference over years – and could almost be as much as 30% plus! Fund manager selection and regular reviews therefore do make a difference over the longer term
Write to us at mfss@plindia.com for information or recommendations on any of our mutual fund recommendations or services.