KARACHI: Owing to the recovery of lost gains on the Karachi Stock Exchange (KSE) last month, a majority of equity-based mutual funds outperformed the benchmark index in April.
As many as 15 out of 22 equity-based conventional mutual funds operating in Pakistan posted returns that were higher than the corresponding increase in the KSE-100 Index in April, according to data compiled by the Mutual Funds Association of Pakistan (Mufap).
The performance of stock funds was largely in line with the overall direction of the share market that performed well during the most part of April.
The KSE-100 Index was at 33,729.9 points at the end of April, up 11.5% from the beginning of the month when it stood at 30.233.8 points. The KSE-100 Index is typically the benchmark for almost all conventional equity funds operating in the country.
The stock funds suffered towards the end of the last month after the benchmark index surged in the preceding four months. In March, however, the market had tumbled. Each of the 22 equity-based conventional mutual funds had posted a negative return in March in the wake of the KSE-100 Index recording one of the highest one-month declines (10.1%).
In 2014, Pakistan was the third best market in the world with 33.7% dollar-based returns.
The best-performing equity-based mutual fund in April was Alfalah GHP Alpha Fund, which posted an absolute return of 16.8%. It was followed by Alfalah GHP Stock Fund, formerly known as IGI Stock Fund, with a return of 16.6% and NAFA Stock Fund (15%).
Other funds that notably outperformed the benchmark index in April were ABL Stock Fund (14.2%), Askari Equity Fund (12.7%), Crosby Dragon Fund (13.4%), MCB Pakistan Stock Market Fund (12.9%), PICIC Energy Fund (12.7%), PIML Value Equity Fund (14.7%) and United Stock Advantage Fund (14%).
Conventional equity funds performing worse than the benchmark index in April were AKD Opportunity Fund (7.4%), First Capital Mutual Fund (11.2%), First Habib Stock Fund (10.3%), JS Value Fund (10.4%), Lakson Equity Fund (8.3%), National Investment Unit Trust (9.6%) and PICIC Stock Fund (8.9%).
