The year 2014 was a good one for domestic equities. The year 2015 was disappointing.
The Sensex closed on December 31, 2014 at 27,499. Yesterday, on December 30, 2015, it closed at a lower 25,960.
Last year, Sundaram S.M.I.L.E. was the best performer with a mind boggling return of 102%. This year, it was a paltry 10.30%.
SBI Pharma was the best performer in 2015 amongst all equity funds.
We looked at the 1-year returns of funds as on December 30, 2015. Here we present the best and the worst.
Pharma funds were on a roll with
SBI Pharma delivering 30.58% while
UTI Growth Sector Fund Pharma and Healthcare was at the bottom of the list but with a return of 14%.
Where Technology was concerned, the difference was also stark. BSL New Millennium delivered 11.70% while SBI IT could only manage 2%.
In the case of FMCG funds, the pendulum swung between 5% to 6.71%.
Financial Services did not have a good run. The best fund delivered less than 1% while the worst performer was way down at -16.21%.
Gold funds too were hammered. Energy was not impressive.
Certain thematic funds such as media funds also did well, while ICICI Prudential Exports and Other Services put up an impressive 17.70%.
Open-Ended Equity: Flexi-cap Category
It is not surprising to find a fund from the Escorts stable top the charts. These funds are known for their concentrated portfolios and volatility.
Escorts High Yield Equity has 19 stocks with the top 10 cornering 60% of the portfolio. Escorts Leading Sectors is not as concentrated but its history is tainted with ups and downs. In 2009, it underperformed the category average by 26%, in 2012 it was the chart topper only to once again display significant underperformance in 2013.
Open-Ended Equity: Large-cap Category
Tata AMC funds have put up some excellent numbers and dominate the top 5 list. The bottom 5 list is a mixture of sorts.
Open-Ended Equity: Mid/Small-cap Category
There are two suprising entrants in the worst performer list.
In 2009, IDFC Sterling delivered an annual return in excess of 100% and it fell less than the category average in 2011. Over the past two years it has had a bad run and underperformed the category average by 21% in 2014.
Axis Midcap was a chart topper in 2012 but put up a very average show last year.
Open-Ended Equity: Tax-saving Category (ELSS)
In 2011 and 2012, HDFC Tax Saver underperformed the category average but bounced back in 2014. This year it has plummeted.
Reliance Tax Saver has been volatile in recent times. In 2012 and 2014 it was shooting out the lights but in 2013 it underperformed the category average by almost 3%. This year too it has disappointed significantly.
How we arrived at the list
When we looked at the best and worst funds, we only selected the one that was ahead in the charts and bypassed its different plans and options.
For instance, in the large-cap category, SBI Bluechip is the third best performer followed Tata Equity Opportunities and Tata Retirement Savings Progressive Fund.
However, in the actual listing, SBI Bluechip (Growth Option - Direct Plan) was the third and SBI Bluechip (Dividend Option - Direct Plan) was the fourth. Similarly, Tata Equity Opportunities (Growth Option - Direct Plan) was followed by Tata Equity Opportunities (Dividend Option - Direct Plan). These were then followed by SBI Bluechip growth and dividend options of the regular plan before Tata Retirement Savings Progressive Fund cropped up.
