Almost all the equity-related schemes have underperformed the Bombay Stock Exchange (BSE) sensex and S&P CNX Nifty last month by recording lower returns than the benchmark indices.
However, 17 schemes managed to outperform the braodbased BSE-500 index during the month. A BS Research Bureau study shows that 118 diversified equity schemes have recorded a net asset value (NAV) growth of 0.27 per cent to 14.96 per cent in November.
During the same period, the sensex appreciated by 10.38 per cent, Nifty by 10.60 per cent and BSE-500 by 8.66 per cent.
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The November rally was led by scrips such as Reliance Industries, Infosys Technologies and Wipro. Only such schemes having a skewed portfolio (hence riskier) in favour of these stocks would have outperformed the sensex and the Nifty.
As diversification is a tool widely used for risk mitigation, majority of the diversified equity schemes do not carry high weightage for these stocks. Hence, these funds have underperformed the benchmark indices.
Of the 118 diversified equity schemes, only Prudential ICICI Power has posted a higher return of 14.96 per cent as against the sensex gaining 10.38 per cent. The net asset value of the scheme grew from Rs 11.16 on October 25 to Rs 12.83 on November 27.
ING Growth Sectors Portfolio ranked second in the returns list with its NAV recording a rise of 10.22 per cent, from Rs 6.46 to Rs 7.12 during the same period.
Prudential ICICI Growth ranked third with a return of 9.98 per cent, followed by UTI Index Select Equity plan (NAV up 9.6 per cent), Escorts Growth (up 9.52 per cent), Franklin India Tax-shield and Libra Tax-shield-96 (up 9.48 per cent each).
All the diversified equity schemes though underperformed sensex and Nifty, UTI