Equity Mutual Funds – HBL Funds grab the top three spots

November 12, 2019 (MLN): With patience comes great rewards. This phrase sits perfectly well with the current state of equity market, which left no stone unturned in marking exceptional victories during the month of October and beyond.

Improving macroeconomic factors and a descending revision in T-bills and PIBs yields helped lift stocks in October. Moreover, Gov’t relaxation for traders on axle load and CNIC condition has helped to further uplift investor’s sentiment.

During the month of October, KSE-100 index moved up by 2,125 points or 6.62%, and closed at 34, 204 points. In view of that, the benchmark against which these mutual funds have been assessed has also been set at the prescribed return of KSE-100 index.

Following in the footsteps of benchmark index, the Equity Mutual Funds also emerged victorious during the month, as the funds of 17 out of 26 companies performed brilliantly while the rest lagged behind with an immaterial margin.

Going by the data gathered by Mettis Global, the top three spots were grabbed by three of HBL’s mutual funds, i.e. HBL Investment Fund-Class A (HBLIF-A), HBL Growth Fund-Class A (HBLGF-A) and HBL Energy Fund (HBLEF).

HBLIF-A’s Net Asset Value (NAV) improved from Rs. 5.59 per share in last month to Rs. 6.59 per share this month, signifying a return of 17.92%. With a high risk profile and a credit rating of AM2+, HBLIF-A holds most of its investments in the form of equities and cash.

HBLGF-A’s performance was nearly similar, as its returns for the period stood at 17.4%, following a jump in its NAV from Rs. 15.75 per share in last month to Rs. 18.5 per share this month. Having a same risk profile and credit rating as that of HBLIF, the investments of HBLGF were also placed with equities and cash.

Lastly, HBLEF gave returns of 9.12% over the month, as its NAV increased from Rs. 10.26 to Rs. 11.19 per share. The investments of this fund were also placed in equities and cash.

Apart from the above stated equity funds, the performance of UBL Stock Advantage Fund, National Investment Unit Trust and First Capital Mutual Fund was also commendable, as they generated returns of 8.83%, 8.46% and 8.38% respectively.

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