| 
| Commodity MFs steal the show
Mutual funds that invest in commodity and energy stocks have trounced the Sensex returns as well as the 70 per cent category average returns of diversified equity funds on a year-to-date basis ending September 18, thanks to the twin benefits of the rally witnessed in the equity markets as well as the commodity rally.
Five of the eight funds (with a track record of at least one year) that invest in the above theme outperformed the Sensex. Funds such as Mirae Asset Global Commodity Stocks Fund, DSP BR Natural Resources and New Energy Fund comfortably outpaced the Sensex by six percentage points to return about 80 per cent during the above period. The funds had a mix of overseas and domestic stocks in their portfolios.
Exposure to global mining, metal and oil refining stocks were the key drivers for the rally in these funds.
While the former held higher exposure to overseas stocks, the latter managed an equally good performance, although overweight on Indian stocks.
Funds such as Magnum Comma that invest only in domestic commodity stocks were not left out as the strong rally in metal and oil refining stocks locally aided performance.
Funds with a slightly more diversified theme such as Sahara Power and Natural Resources Fund also breezed past the Sensex with 84 per cent returns.
Gold funds lead now
While metals and energy appear to have been the hot commodity theme for the January-September period, gold may have been a slightly late entrant. Funds that invest in gold mining companies were laggards on year-to-date basis, but have emerged as outperformers over the last three months.
AIG World Gold Fund emerged as the top performer with a 33 per cent return over this period while DSP BR World Gold Fund added 26 per cent. Both the funds invest in global gold stocks through feeder funds - or in other words invest in overseas funds that invest in stocks of companies engaged in the extracting, processing and marketing of gold.
| 
|
| © Copyright Sify Technologies Ltd, 1998-2009. All rights reserved. India News Portal, Sify.com hosted at SifyHosting India's first Level 3 Internet Data Centre. Site optimized for Internet Explorer 5.5 and above. See Disclaimer | Privacy Policy & Parental Guidance on pornography | careers@sify | About Us | Feedback | Advertise |