Foreign flavour helping mutual fund investors mint money as D-Street slows down
equity mutual funds have offered negative returns in one horizon, except for international funds and large cap funds, data crunching by ETMutualFunds showed. Small cap funds were the worst hit, with -5.65% return in one month horizon. Energy & Power funds gave a negative return of around 3.46%.
Pharma & Health Care funds lost around 3% in one month. Mid Cap Funds lost 2.86% during the same time period.
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Now, the question comes what has impacted the performance of equity mutual funds in one month horizon? “The valuation of the markets has been high. There were guidelines for mid and small caps valuation that could be high and investors were advised not to have a very high exposure in them. This impacted the overall short-term performance of equity markets,” said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance.
He added, “But that is not a concern for long-term investors and they should continue to invest based on their goals and their risk appetite. Besides when investors are investing via Systematic Investment Plans (SIPs), then the averaging out will happen.”
International funds offered 1.70% in one month. There were around 65 schemes in the international fund category that have completed one month in the market.
ICICI Pru Strategic Metal and Energy Equity
