Equity funds end year on high note

It will be a merry and prosperous Christmas for New Zealand equity funds investors.

Latest FundSource figures show the sector returned, on average, 18.13 per cent for the 12 months to the end of November after tax and fees.

This looks to have underperformed the NZX50 gross index (at 27.51 per cent for the year to November 30) but, after tax, the benchmark return drops to 17.86 per cent.

"The good times keep rolling for the sharemarket as the domestic economy continues to defy dire short-term predictions to maintain strong levels," FundSource business manager Tim Anderson said.

"This will delight equity fund investors who are not only relishing short-term success but are also now enjoying five-year annualised performance of 8.5 per cent."

The top performing local equity fund was Fisher Funds NZ Growth fund which returned 25.99 per cent for the 12 months to the end of November. There is over $19 billion invested in retail managed funds.