The strong showing by opportunity funds comes on the back of equity markets looking up in two years
StanChart MF to focus on debt, stay off equity opportunity funds have posted an average return of 13.28 per cent in the last one month.
In comparison, the Bombay Stock Exchange Sensex registered a 13.4 per cent growth in the period.
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Franklin India Prima Fund - growth tops the chart with a 1-month return of 16.9 per cent, followed by Tata Equity Opportunities Fund with 16.7 per cent.
In simple annualised terms, the two funds have returned 187.04 per cent and 184.32 per cent, respectively.
According to Ved Prakash Chaturvedi, CEO, Tata TD Mutual Fund, the performance of Tata Equity Opportunities Fund has been encouraging as it has proactively identified the right opportunities presented by the equity markets.
Tata Equity Opportunities Fund (TEOF) has invested in several mid- and small-cap pharmaceutical stocks such as Ipca Labs, Divi Laboratories and Aurobindo Pharma and auto-ancillary stocks such as Bharat Forge, Sundaram Clayton and Sundaram Fasteners.
The strong showing by opportunity funds is on the back of the fact that the Indian equity markets are looking up for the first time in the last couple of years.
The southwest monsoon has already hit Kerala, the fundamentals of the economy are strong and FII inflows are growing stronger by the day.
The benchmark BSE Sensex has gained over 11 per cent since March 31, 2003 and has edged up by around 5 per cent in the last week itself.
An opportunity fund is unique in its investment approach. It is neither a diversified equity fund nor a sector specific fund.