Balanced funds performed better than monthly income plans (MIP), debt and even large cap equity peers last fiscal, riding on interest rate cuts and continued firmness in equities. These funds typically invest over 65% of their corpus in equity and the remaining in debt and cash, which allows them to tap run-ups in either category, states a CRISIL report.
The CRISIL–AMFI Balance Fund Performance Index gave a return of 37% in 2014-15 compared with 21% by monthly income plans (CRISIL–AMFI MIP Fund Performance Index) and 12% by debt (CRISIL–AMFI Debt Fund Performance Index).
“Within balanced category, higher allocation to equity especially in the last one year, helped CRISIL fund rank 1 & 2 outperform their peers. Balanced category also outperformed the CRISIL–AMFI Large Cap Fund Performance Index in most time horizons considered, said the press release.
On the debt side, the yield on the 10-year gilt securities fell 1% last fiscal. A portfolio analysis of CRISIL ranked balanced funds showed that funds increased gilt exposure to 13% on average last fiscal, compared with 8% in FY14, thereby benefitting from interest rate fall. Further, higher allocation to gilt especially in the last one year helped CRISIL fund rank 1 & 2 outperform their peers, the release stated.
The CRISIL Mutual Fund Ranking covers close to 88% of the average assets under management of open-ended schemes at the end of March 2015.
Category and benchmark returns (%) for quarter ended March 2015
Categories
|
|
1 year absolute |
2 years annualized |
3 years annualized |
5 years annualized |
|
CRISIL – AMFI Large Cap Fund Performance Index |
35% |
27% |
20% |
13% |
|
CRISIL – AMFI Income Fund Performance Index |
15% |
9% |
10% |
8% |
|
CRISIL – AMFI Debt Fund Performance Index |
12% |
9% |
9% |
8% |
|
CRISIL – AMFI Gilt Fund Performance Index |
18% |
9% |
10% |
8% |
|
CRISIL – AMFI Short Term Debt Fund Performance Index |
11% |
9% |
10% |
9% |
|
CRISIL – AMFI MIP Fund Performance Index |
21% |
14% |
12% |
10% |
|
CRISIL – AMFI Balance Fund Performance Index |
37% |
27% |
20% |
14% |
