Equity MFs put up better show

Investors in the equity diversified mutual fund category earned average returns of 76.73 per cent in the past one year. However in November 2009 alone, it posted returns of 6.33 per cent. But out of 246 equity diversified funds, none gave negative returns.
Asserting that though there is a volatility in the short term Mr J. Venkatesan, vice-president (equity) of BNP Sundaram Paribas AMC, said: “The recent performance of equity funds and future opportunities for them suggest that the investments in the companies that form the core sector of the Indian economy would give high returns in the long term.“For instance, stocks of the companies having monopoly and track record of high dividend yield would continue to do well.”
Going forward, depending upon the risk appetite of the investor, thematic funds would provide good investment opportunities, he added.
Mutual fund experts are of the view that the mutual fund trading on the bourses also would give a further boost to the investments in equity funds.
Stressing this point Mr Jaideep Bhattacharya, chief marketing officer of UTI Mutual Fund said: “Since mutual fund schemes started trading on the bourses we are receiving a sustained flow of applications predominantly in the equity schemes from the investors. The stock exchanges have three times larger networks than the existing network of mutual funds. This would give a major boost to the investments in equity fund schemes.”

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