March 16, 2022 (MLN): In line with the performance of the stock market, equity mutual funds during the month of February 2022 failed to impress the investors as they all delivered negative returns. Moreover, there were 17 out of 26 such equity funds whose returns went below the benchmark of -2% set by the KSE-100 index.
To note, the KSE-100 index, which is the benchmark of equity mutual funds slumped lower nearly 2% or 914 points MoM (down 2.4% in USD) in February 2022, as tensions between Russia and Ukraine escalated, resulting in soaring international commodity prices, which led to inflationary concerns and prompted selling pressure in the equity market. A host of negative news in the month of February 2020 that weighed on the equity market, kept a tight rein on investors to make profits as all the funds that invest
As a result of this, all equity mutual funds generated negative returns during the month under review, with most of them, performing worse than the benchmark KSE-100 index.
As per the data compiled by Mettis Global, UBL Stock Advantage Funds (UBLUSAF), National Investment Unit Trust (NIT-NIUT), and AL Habib Stock Fund (AHSF) were the most preferred funds as they generated the least negative monthly returns at 0.37%, 0.87%, and 1.1%, respectively.
These funds held most of their investment in Commercial Banks, Oil & Gas Exploration and Textile sectors during the month.
Going by the data, Atlas Stock Market Fund (ATLASSMF), landed as the fourth runner up, as it generated -1.11% returns during the month followed by MCB Pakistan Stock Market Fund (MCBAHPSMF) as its returns for the month stood at -1.5%
Just like predecessors, ATLASSMF and MCBAHPSMF held most of their holding in Commercial Banks, Textile, and Cement.
On the other hand, AKD Opportunity Fund (AKDOF), Faysal Stock Fund (FAYSALSF), and First Capital Mutual Fund-B (FCMF) emerged as the worst-performing funds as they delivered the highest negative returns of 22.08%, 5.86% and 3.91% respectively.
From FY22 to date, despite dismal performance of the stock market, UBL Financial Sector Fund (UBLFSF), NBP Financial Sector Fund (NBPFSF), and UBL Stock Advantage Fund (UBLUSAF) have hogged the limelight by delivering positive returns compared to the KSE-100’s negative return of 6.11%.
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