Domestic equity funds were hit by the vagaries of the stock markets in the current month, with 94 of the 160 schemes in operation underperforming the Bombay Stock Exchange (BSE)-500 index. Only 41 per cent (66 schemes) managed to outperform the BSE-500.

But, when benchmarked against the narrow indices -- the BSE Sensex and National Stock Exchange's S&P CNX Nifty -- as many as 94 per cent of the schemes delivered better returns. Between November 3 and 19, the BSE Sensex lost 4.7 per cent while the Nifty was down 3.81 per cent. The broader BSE-500 fell 0.47 per cent.

A portfolio analysis of equity schemes shows that funds with a sizeable exposure to mid-cap stocks have performed well in November. In contrast, schemes which invested predominately in blue chip stocks lost ground.

The equity portfolio of almost all equity schemes is heavily biased in favour of Sensex heavyweights and bank stocks. Since the market fancy has now shifted to mid-cap stocks, most equity schemes, which hold heavyweight stocks have underperformed the broad markets.

A look at the net asset values shows almost all index funds have fared badly, with NAVs falling in the range of 3.25 per cent and 13.94 per cent.

Most of the tax planning schemes and sector-specific schemes and a few diversified funds have done relatively well, recording a positive NAV growth.

In the current month alone, a sizeable number of A group stocks have posted returns in excess of over 10 per cent. Sterlite Industries, GMDC, G E Shipping, Escorts, Jindal Iron, Indian Cement and Hindustan Zinc have appreciated by over 40 per cent each.

On the contrary, most of front-line banks and Sensex stocks have declined between November 3 and 19. Punjab National Bank, Oriental Bank of Commerce, Syndicate Bank, Indian Overseas Bank and J & K Bank have declined over five per cent each.

Among equity funds, Tata Equity Opportunity fund tops the gainers list with an NAV appreciation of 14.46 per cent. The fund has significant investments in Maruti Udyog, G E Shipping, ACC, Jaiprakash Industries and Pantaloon Retails and many mid cap stocks.

A tax-saving scheme, BoB Elss-97 ranked second among gainers with an NAV appreciation of 8.34 per cent. The scheme has major investments in Ranbaxy Labs, BPCL, Larsen & Toubro, Hero Honda and Madras Cement. These stocks have outperformed the BSE Sensex and even the broad markets.

Among other equity funds, Canpep-94 has posted a NAV growth of 7.93 per cent, Tata Select Sector Fund and Sundaram Select Midcap Fund (NAVs up 7.1 per cent each), BoB Elss-95 (6.9 per cent), Tata Tax Savings, SBI Pharma, SBI MTP-94, UTI Master Value fund, Taurus Star and Taurus discovery have appreciated over six per cent.

Three index funds of LIC Mutual Fund Sensex, Nifty and Sensex advantage have underperformed in November. The NAV of all three schemes declined by over 13 per cent. These schemes have major investments in Reliance Industries, Hindustan Lever, Infosys Technologies, Wipro and SBI.