GEMGAZE

May 2012

Index funds are miracles of modern finance and should form the core of every investor’s portfolio. Since index funds have a large expense advantage over any actively managed mutual fund, they must have above-average returns in any significant time period. Thus, if you want above-average returns, index fund is the answer.

The May 2011 Index GEMs have retained their eminent status in May 2012 too.

Goldman Sachs Banking BeES Gem

There has been a drastic fall in the AUM of Goldman Sachs Banking BeES (formerly Benchmark Banking BeES) from Rs 271.2 crores last year to Rs. 53.23 crores at present. The one-year return of the fund is –15.26%, slightly ahead of the category average of –17.47%. The returns of the fund are benchmarked against the Benchmark CNX Bank Index. Large caps rule the roost with 94% of the portfolio in large cap stocks. 99.9% of the assets are in equities. The expense ratio is 0.48% and the portfolio turnover ratio is 96%.

ICICI Prudential Index Fund Gem 

The AUM of ICICI Prudential Index Fund has been hovering around Rs. 88.92 crores during the past couple of years. The one-year return of the fund is –10.84%, slightly below the category average of –10.57%. The returns of the fund are benchmarked against the Benchmark S&P CNX Nifty. The top three sectors, finance, energy and technology account for 50.77% of the portfolio. The expense ratio is 1.46% and the portfolio turnover ratio is 19%.

Can Robeco Nifty Index Fund Gem 

The AUM of Can Robeco Nifty Index Fund is a paltry Rs. 4.37 crores. The one-year return of the fund is –11.19%, below the category average of –10.57%. The returns of the fund are benchmarked against the Benchmark S&P CNX Nifty. The top three sectors, finance, energy and technology account for 57.75% of the portfolio. The expense ratio is 1.14% and the portfolio turnover ratio is 13%.

Franklin India Index Fund Gem

The AUM of Franklin India Index Fund is Rs. 162.23 crores. The one-year return of the fund is –11.5%, below the category average of –10.57%. The returns of the fund are benchmarked against the Benchmark S&P CNX Nifty. The top three sectors, finance, energy and technology account for 57.73% of the portfolio. The expense ratio is 1% and the portfolio turnover ratio is 16.53%.

Principal Index Fund Gem

The AUM of Franklin India Index Fund is Rs. 13.37 crores. The one-year return of the fund is –11.19%, below the category average of –10.57%. The returns of the fund are benchmarked against the Benchmark S&P CNX Nifty. The top three sectors, finance, energy and technology account for 58.34% of the portfolio. The expense ratio is 1% and the portfolio turnover ratio is 7%.

Birla Index Fund

The AUM of Birla Index Fund is Rs. 25.73 crores. The one-year return of the fund is –11.96%, much below the category average of –10.57%. The returns of the fund are benchmarked against S&P CNX Nifty. The top three sectors, finance, energy and technology account for 53.77% of the portfolio. The expense ratio is 1.5% and the portfolio turnover ratio is 78%.

UTI Nifty Index Fund

The AUM of UTI Nifty Index Fund is Rs. 168.66 crores. The one-year return of the fund is –11.74%, much below the category average of –10.57%. The returns of the fund are benchmarked against S&P CNX Nifty. The top three sectors, finance, energy and technology account for 58.05% of the portfolio. The expense ratio is 1.49% and the portfolio turnover ratio is 34%.

Tata Index Nifty Fund

The AUM of Tata Index Nifty Fund is Rs. 9.16 crores. The one-year return of the fund is –11.15%, below the category average of –10.57%. The returns of the fund are benchmarked against S&P CNX Nifty. The top three sectors, finance, energy and technology account for 57.74% of the portfolio. The expense ratio is 1.5% and the portfolio turnover ratio is 3%.

SBI Magnum Index Fund

The AUM of SBI Magnum Index Fund is Rs. 34.67 crores. The one-year return of the fund is –11.33%, below the category average of –10.57%. The returns of the fund are benchmarked against S&P CNX Nifty. The top three sectors, finance, energy and technology account for 55.83% of the portfolio. The expense ratio is 1.5% and the portfolio turnover ratio is 76%.