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Mutual funds in big rebound from 2008

india Updated: Sep 16, 2010 02:31 IST
Sandeep Singh
Sandeep Singh
Hindustan Times
Mutual funds in big rebound from 2008

If your mutual funds sank — and with it your heart — after hitting highs in January 2008, it is time to cheer up. As many as 221 schemes out of the 572 equity schemes have already crossed the net asset values (NAV) they hit when the Sensex closed at its life-time peak on January 8, 2008.

NAV data of all equity schemes including balanced schemes (split between debt and equity) and Monthly Income Plans or MIPs (that invest up to 20 per cent in equity) as on Tuesday shows fund managers have brought gains in value from the losses incurred since then.

However as many as 351 schemes have yet to reach the highs they witnessed in 2008.

Sectoral schemes such as those that put money in pharmaceutical, consumer goods and banking stocks come out on top, with MIPs and balanced funds also doing well.

The ones that have yet to regain their NAV levels are the ones that have high exposure to infrastructure and realty or those in which fund managers did not do well enough.

"Balanced funds can handle the volatility better and can move into cash to a larger extent (when required) and hence perform well," said Surya Bhatia, a Delhi-based financial planner.

The performance varies among various fund houses. HDFC Mutual Fund tops with 19 out of its 21 schemes having crossed their NAVs at the time when Sensex was at its highest peak. DSP Black Rock, Reliance, ICICI Prudential and Birla Sunlife mutual funds follow.