Equity schemes have made a strong comeback after Budget day.
In line with the gains in key indices, which rose nearly seven per cent in three days, the highest such in seven years, the category average return of equity funds in the period was six to seven per cent.
The top invested schemes, which collectively manage a little over a fourth of all equity assets, did well. The recent rally arrested the continuous fall, which had deepened since the start of 2016, in the wealth of investors who'd invested in these. A majority of these schemes had lost 15-20 per cent in recent months.
However, this week saw some relief for equity schemes. HDFC Equity Fund and HDFC Top 200, the largest in the sector and with renowned fund manager Prashant Jain at the helm, had a gain in excess of eight per cent. Collectively, they managed assets worth Rs 29,300 crore as on end-December 2015.
Fund managers have doubts over the rally's sustainability and don't rule out more bouts of correction. However, they also feel the market is near its bottom.
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