Equity mutual funds have failed in every major fall to protect investors’ capital
Some Common Myths
(About equity mutual funds)
- Myth: MF can save you from downfalls
- Fact: Not a single equity scheme was safe in 2008, all fell almost as much as the markets
- Myth: Investing in different MFs reduces risk
- Fact: There is no substantial difference in returns of different schemes of same category except sector schemes which are inherently riskier compared to diversified funds
- Myth: Blue chip schemes are safe
- Fact: When markets fall, even blue chip schemes fall, as one can see in the tables below there are several leading blue chip schemes that have fallen almost as much as the markets have fallen
Pathetic Performance of Mutual Funds During 2008
Top mutual fund schemes from each major category (sector and arbitrage funds are excluded) are covered in this analysis.
| LARGE CAP FUNDS | |||||
| Invested on 1/Jan/08 | Exited on 31/Dec/08 | ||||
| Scheme Name/Benchmark | Amount Invested (A) | Investment Value(B) | Profit from Investment (B-A) | Return | |
| BENCHMARK: Nifty 50* | 1000 | 481.6 | -518.4 | -51.84% | |
| 1 | Tata Pure Equity Fund – Reg – Growth | 1000 | 504.9 | -495.1 | -49.51% |
| 2 | Sundaram Select Focus – Reg – Growth | 1000 | 475 | -525 | -52.50% |
| 3 | Sundaram Growth Fund – Reg – Growth | 1000 | 421.7 | -578.3 | -57.83% |
| 4 | SBI Magnum Equity Fund – Growth | 1000 | 437.3 | -562.7 | -56.27% |
| 5 | Reliance Focused Large Cap Fund – Gr. | 1000 | 544.8 | -455.2 | -45.52% |
| 6 | Kotak 50 – Reg – Growth | 1000 | 495 | -505 | -50.50% |
| 7 | ICICI Prudential Top 100 Fund – Growth | 1000 | 522.9 | -477.1 | -47.71% |
| 8 | ICICI Pru Indo Asia Eq Fund – Ret – Gr. | 1000 | 493.1 | -506.9 | -50.69% |
| 9 | ICICI Prudential Dynamic Plan – Growth | 1000 | 546.7 | -453.3 | -45.33% |
| 10 | HDFC Long Term Advantage Fund – Gr. | 1000 | 473.5 | -526.5 | -52.65% |
| 11 | HDFC Growth Fund – Growth | 1000 | 512.4 | -487.6 | -48.76% |
| 12 | Templeton India Growth Fund – Growth | 1000 | 488.5 | -511.5 | -51.15% |
| 13 | Birla Sun Life Top 100 Fund – Growth | 1000 | 504 | -496 | -49.60% |
| 14 | Birla Sun Life Tax Plan – Growth | 1000 | 419.9 | -580.1 | -58.01% |
| BENCHMARK: S&P BSE 100** | 1000 | 445.1 | -554.9 | -55.49% | |
| 15 | UTI Top 100 Fund – Growth | 1000 | 450.6 | -549.4 | -54.94% |
| 16 | UTI Opportunities Fund – Growth | 1000 | 505 | -495 | -49.50% |
| 17 | UTI Mastershare – Growth | 1000 | 495.3 | -504.7 | -50.47% |
| 18 | UTI Long Term Equity Fund – Growth | 1000 | 450.4 | -549.6 | -54.96% |
| 19 | UTI Equity Fund – Growth | 1000 | 544 | -456 | -45.60% |
| 20 | SBI Magnum Tax Gain Scheme 93 – Gr. | 1000 | 449.8 | -550.2 | -55.02% |
| 21 | Reliance Growth – Growth | 1000 | 454 | -546 | -54.60% |
| 22 | Reliance Eq Opportunities Fund – Gr. | 1000 | 440.2 | -559.8 | -55.98% |
| 23 | Kotak Classic Equity – Reg – Growth | 1000 | 488.8 | -511.2 | -51.12% |
| 24 | HDFC Large Cap Fund – Growth | 1000 | 431.8 | -568.2 | -56.82% |
| 25 | DSP BlackRock Top 100 Eq Fund – Gr. | 1000 | 542.1 | -457.9 | -45.79% |
| 26 | DSP BlackRock India Tiger Fund – Gr | 1000 | 416.3 | -583.7 | -58.37% |
* Benchmark is Nifty 50 or Sensex
** Benchmark is BSE 100 or NSE 100
| MULTICAP/ FLEXICAP FUNDS | |||||
| Invested on 1/Jan/08 | Exited on 31/Dec/08 | ||||
| Scheme Name/Benchmark | Amount Invested (A) | Investment Value(B) | Profit from Investment (B-A) | Return | |
| BENCHMARK: Nifty 500 | 1000 | 426.4 | -573.6 | -57.36% | |
| 1 | SBI Magnum Multi Cap Fund – Growth | 1000 | 423.3 | -576.7 | -57.67% |
| 2 | SBI Bluechip Fund – Growth | 1000 | 448.4 | -551.6 | -55.16% |
| 3 | Kotak Taxsaver – Reg – Growth | 1000 | 403.4 | -596.6 | -59.66% |
| 4 | Kotak Opportunities Fund – Reg – Gr. | 1000 | 429 | -571 | -57.10% |
| 5 | ICICI Pru Long T. Eq (Tax Saving)- Gr. | 1000 | 435.7 | -564.3 | -56.43% |
| 6 | HDFC Taxsaver – Growth | 1000 | 481.2 | -518.8 | -51.88% |
| 7 | HDFC Premier Multi – Cap Fund – Gr. | 1000 | 472.7 | -527.3 | -52.73% |
| 8 | HDFC Equity Fund – Growth | 1000 | 500.4 | -499.6 | -49.96% |
| 9 | HDFC Capital Builder Fund – Growth | 1000 | 448.3 | -551.7 | -55.17% |
| 10 | Franklin India Prima Plus – Growth | 1000 | 523.4 | -476.6 | -47.66% |
| 11 | Franklin India Flexi Cap Fund – Growth | 1000 | 482 | -518 | -51.80% |
| 12 | Birla Sun Life India Opportunities – Gr. | 1000 | 379.3 | -620.7 | -62.07% |
| 13 | DSP BlackRock Equity Fund – Reg – Gr. | 1000 | 496.4 | -503.6 | -50.36% |
| BENCHMARK: S&P BSE 200 | 1000 | 432.7 | -567.3 | -56.73% | |
| 14 | UTI Bluechip Flexicap Fund – Growth | 1000 | 459.7 | -540.3 | -54.03% |
| 15 | Tata Equity Opportunities -Reg – Gr | 1000 | 386 | -614 | -61.40% |
| 16 | Reliance Top 200 Fund – Growth | 1000 | 506.9 | -493.1 | -49.31% |
| 17 | JPMorgan India Equity Fund – Growth | 1000 | 443.8 | -556.2 | -55.62% |
| 18 | ICICI Prudential Multicap Fund – Gr. | 1000 | 443.7 | -556.3 | -55.63% |
| 19 | HDFC Top 200 – Growth | 1000 | 545.1 | -454.9 | -45.49% |
| 20 | Franklin India Opportunities Fund-Gr. | 1000 | 418.6 | -581.4 | -58.14% |
| 21 | Birla Sun Life Long T. Advantage- Gr. | 1000 | 455.1 | -544.9 | -54.49% |
| 22 | Birla Sun Life Frontline Eq-Reg – Gr. | 1000 | 510 | -490 | -49.00% |
| 23 | Birla Sun Life Equity Fund – Growth | 1000 | 432 | -568 | -56.80% |
| 24 | Birla Sun Life Buy India Fund – Growth | 1000 | 493.3 | -506.7 | -50.67% |
| 25 | Birla Sun Life Advantage Fund – Gr. | 1000 | 411.7 | -588.3 | -58.83% |
| MIDCAP FUNDS | |||||
| Invested on 1/Jan/08 | Exited on 31/Dec/08 | ||||
| Scheme Name/Benchmark | Amount Invested (A) | Investment Value(B) | Profit from Investment (B-A) | Return | |
| BENCHMARK: Nifty Midcap 100 | 1000 | 397.7 | -602.3 | -60.23% | |
| 1 | UTI Mid Cap Fund – Growth | 1000 | 383.4 | -616.6 | -61.66% |
| 2 | Tata Mid Cap Growth -Reg – Gr. | 1000 | 390.3 | -609.7 | -60.97% |
| 3 | Sundaram Taxsaver – Reg – Growth | 1000 | 519.7 | -480.3 | -48.03% |
| 4 | Sundaram Select Midcap – Reg – Gr. | 1000 | 410.6 | -589.4 | -58.94% |
| 5 | SBI Magnum Midcap Fund – Growth | 1000 | 280.3 | -719.7 | -71.97% |
| 6 | Reliance Mid & Small Cap – Gr. | 1000 | 447.9 | -552.1 | -55.21% |
| 7 | Kotak Midcap Fund – Reg – Growth | 1000 | 365.7 | -634.3 | -63.43% |
| 8 | JPMorgan India Mid and Small-Gr | 1000 | 336.9 | -663.1 | -66.31% |
| 9 | ICICI Prudential Value Discovery – Gr. | 1000 | 442 | -558 | -55.80% |
| 10 | ICICI Prudential MidCap Fund – Gr. | 1000 | 316.1 | -683.9 | -68.39% |
| 11 | Franklin India Smaller Companies – Gr | 1000 | 364.8 | -635.2 | -63.52% |
| 12 | Birla Sun Life Small & Midcap – Gr. | 1000 | 379.1 | -620.9 | -62.09% |
| 13 | Birla Sun Life Mid Cap – Plan A – Gr. | 1000 | 408.7 | -591.3 | -59.13% |
| 14 | DSP BlackRock Small and Midcap – Gr. | 1000 | 410.7 | -589.3 | -58.93% |
Source: www.mutualfundindia.com