Small & mid-cap funds outshine other equity schemes: CRISIL

At the fund house level, UTI Mutual Fund and Birla Sun Life Mutual Fund led the tally of top-ranked funds for the quarter ended December 2013

January 27, 2014 11:58 IST | India Infoline News Service
Small and mid-cap equity funds, as represented by the CRISIL – AMFI Small & Midcap Fund Performance Index, have given the highest returns among equity-oriented funds in almost all timeframes ended December 31, 2013 (see Table 1).

CRISIL computed the returns of equity-oriented funds for the latest quarter as well as longer time frames. The small and mid-cap category emerged as the chartbuster beating its large-cap, diversified and ELSS peers, and the category benchmark, CNX Midcap Index over two-year, three-year and five-year periods. In fact, for the quarter ended December, which saw all equity categories outperform their respective category benchmarks, the CRISIL – AMFI Small & Midcap Fund Performance Index generated absolute return of 19.21%, higher than not only the CNX Midcap Index’s 15.34%, but also the broader-market barometer CNX Nifty’s 9.92%.

What helped the small- and mid-cap funds excel? Better sector selection – specifically, higher allocation to sectors such as industrial products coupled with lower exposure to oil & gas and power in the latest quarter. The absolute returns for sectoral indices are S&P BSE Capital Goods (33.19%), S&P BSE Oil & Gas (7.52%) and S&P BSE Power (11.69%) compared to CNX Midcap Index (15.34%) over the quarter (see Table 2). Within the small and mid-cap category, CRISIL Fund Rank 1 funds (as of the quarter ended December 2013) had higher exposure to sectors such as pharmaceuticals, auto & auto ancillaries and were underweight banking & financial services, oil & gas and power over the three-year period.

At the fund house level, UTI Mutual Fund and Birla Sun Life Mutual Fund led the tally of top-ranked funds for the quarter ended December 2013 with eight funds each under CRISIL Fund Rank 1, followed by ICICI Prudential Mutual Fund with seven and IDFC Mutual Fund with five funds. The latest CRISIL Mutual Fund Ranking covers close to 90% of the average assets under management of open ended schemes at the end of December 2013.

Table 1: Category and Benchmark Returns (%) 
quarter ended December 2013

Categories 3-month  6- month
9 months 
1 Yr 
2 Yrs 
3 Yrs 
5 Yrs 
CRISIL – AMFI Large Cap 
Fund Performance
12.22 10.52 12.30 5.74 17.05 2.47 18.04
CRISIL – AMFI Diversified 
Equity Fund Performance
15.73 12.91 12.53 3.92 17.55 1.25 18.13
CRISIL – AMFI Small & 
Midcap Fund Performance
19.21 16.84 16.02 4.78 21.84 4.33 23.70
Fund Performance
15.64 13.72 14.97 6.54 19.36 2.73 19.26
CRISIL – AMFI Balance 
Fund Performance
14.72 10.55 11.23 4.35 16.14 4.21 18.24

CNX NIFTY Index 9.92 7.90 10.94 6.76 16.71 0.91 16.32
CNX 500 Index 11.90 8.95 10.74 3.61 16.83 -0.18 16.43
CNX Midcap Index 15.34 9.93 9.05 -5.10 14.87 -3.05 16.65
CRISIL BalanceEx 7.30 4.64 7.94 6.05 13.37 3.26 13.19
Table 2: Sectoral Indices Return (%) - quarter ended December 2013
Scheme 3-Month Absolute 1 Yr Absolute 2 Yrs Annualised 3 Yrs Annualised
CNX Auto Index 12.88 9.41 24.77 7.90
CNX Bank Index 18.38 -8.73 19.47 -1.16
CNX Finance Index 14.57 -7.32 18.62 0.00
CNX Pharma Index 3.72 26.51 29.08 14.49
S&P BSE Capital Goods 33.19 -5.56 12.76 -12.67
S&P BSE Oil & Gas 7.52 3.71 8.30 -5.89
S&P BSE Power 11.69 -14.57 -2.68 -17.12
CNX Midcap Index 15.34 -5.10 14.87 -3.05
Table 3 - CRISIL Fund Rank 1 Schemes
Large Cap-oriented Equity Funds Long Term Income Funds
Birla Sun Life Top 100 Fund HSBC Flexi Debt Fund
Canara Robeco Large Cap+ Fund IDFC Dynamic Bond Fund
ICICI Prudential Top 100 Fund SBI Dynamic Bond Fund
UTI India Lifestyle Fund

Short Term Income Funds
Diversified Equity Funds DSP BlackRock Short Term Fund
Birla Sun Life India GenNext Fund HDFC Short Term Opportunities Fund
ICICI Prudential Dynamic Plan Morgan Stanley Short Term Bond Fund
ICICI Prudential Exports and Other Services Fund Sundaram Select Debt ST Asset Plan
Tata Ethical Fund Tata Short Term Bond Fund

Ultra Short Term Debt Funds
Small and Mid-cap Equity Funds Religare Invesco Credit Opportunities Fund
Birla Sun Life MNC Fund UTI Floating Rate Fund - STP
Franklin India Smaller Companies Fund UTI Treasury Advantage Fund
Mirae Asset Emerging Bluechip Fund

Liquid Funds
Thematic - Infrastructure Funds HSBC Cash Fund
Birla Sun Life Infrastructure Fund ICICI Prudential Liquid Plan

Morgan Stanley Liquid Fund
Equity-Linked Savings Scheme (ELSS) Peerless Liquid Fund
Axis Long Term Equity Fund
BNP Paribas Tax Advantage Plan Consistent Performers - Equity Funds

Birla Sun Life India GenNext Fund
Index Funds Birla Sun Life MNC Fund
Kotak Nifty ETF ICICI Prudential Discovery Fund

IDFC Premier Equity Fund
Balanced Funds Reliance Equity Opportunities Fund
ICICI Prudential Balanced Advantage Fund SBI Emerging Businesses Fund

UTI Equity Fund
Monthly Income Plan – Aggressive UTI MNC Fund
Birla Sun Life MIP II - Wealth 25 Plan UTI Opportunities Fund
FT India Monthly Income Plan

Consistent Performers - Balanced Funds
Monthly Income Plan – Conservative ICICI Prudential Balanced Fund
Birla Sun Life MIP II - Savings 5 Plan

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