97% mutual fund schemes touch 52-week high

97% mutual fund schemes touch 52-week high since October 2009.

The past six weeks have seen an overwhelming majority of diversified mutual funds
rise to their highest levels in a year, far outpacing individual stocks.

Out of a total of 291 diversified mutual fund schemes, 281, or 97%, rose to their 52-week high during the past month and a half. On the other hand, only 46% of stocks managed to do so: out of 1,281 stocks that were traded on November 20 on the NSE, only 608 reached their highest level in a year.

Of the 10 mutual fund schemes which did not touch a 52-week high in October, seven did so in September, for three of them the milestone was reached in June.

Analysts feel that foremost reason is the kind of portfolio that a particular MF scheme has. The stocks that a fund holds may not be the ones hitting their one-year high. The net asset value of a fund depends on many things such as the price at which the stocks are bought and the time of exit. That is one major reason why an actively managed fund outperforms and index fund, particularly in a developed market