2014: A Remarkable Year For Equity Mutual Funds..!

Funds like Sundaram SMILE Fund & SBI Small and Mid Cap Fund were able to post returns of of 105% and 102% respectively in the past one year.

2014 turned out to be a remarkable year for equity mutual funds (MFs), with positive investor experience in the last one year.

Of all the equity funds category, mid & small cap funds emerged winners as a few of them delivered returns in excess of 100% in the last one year.

Constant rise in equity markets since December last year (2013) and betting on stocks that could benefit from revival of the Indian economy helped fund managers generate strong returns.

According to the data from Valueresearchonline.in  in the past one year, on an average large cap funds gave returns of about 35%, while large & mid cap funds provided returns of 44 %.

But, mid & small cap funds generated returns of 72% on an average in the same period.

Funds like Sundaram SMILE Fund & SBI Small and Mid Cap Fund were able to post returns of of 105% and 102% respectively in the past one year.

Sundaram SMILE fund is managed by their head equity Mr. S Krishna Kumar and was one of their flagship funds in the mid & small cap segment.

SBI Small & Mid Cap Fund is managed by Mr. R Srinivasan who is known to ‘spot’ opportunities in mid and small cap stocks.

mutual funds, equity mutual funds, mid cap funds, small cap funds

In the large & mid cap category, Birla Sun Life Special Situation Fund & Kotak Select Focus Fund were top performers giving returns of 60 per cent and 56 per cent respectively in the last one year.

Mr. Harsha Upadhyaya, Fund manager, Kotak Select Focus Fund and CIO of equity at the fund house says, “The mandate of the fund is such that, we focus on investing only in select sectors and try and outperform the market. In 2014, our call on both sector selection & stocks worked very well.”

In the large cap category, funds such as L&T Equity Fund & HDFC Top 200 Fund were top performers.

HDFC Top 200 Fund which is managed by star fund manager Mr. Prashant Jain had seen an ‘average performance’ in the past few years. But in 2014, the fund managed to outperform the markets by giving returns of 45 % as compared to 34.25 % return on the benchmark BSE 200 in the last one year.

Many fund managers believe even in 2015 markets are likely to continue their upward journey with some corrections.

Equity as an asset class will outperform in 2015. But, we are advising investors not to expect the find of returns they have seen in the last one year.

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