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Equity Categories in Green

The Sensex turned in negative returns in August while all equity fund categories registered positive returns

The gravitational force of the earth is such that what goes up has to come down sooner or later. But unfortunately, for the Indian capital markets, that’s not such a good thing. The Sensex, after having gone up by 6.64 per cent in July, came down crashing to lose (-) 0.42 per cent in August. The fall in the market benchmarks coincided with a fall in the inflation rate, for the first time this year. 

Amongst the mutual fund categories that gained the most, the Equity Auto category came out on top. The two-fund category was at the helm among all the 28 categories with returns of 8.72 per cent. JM Auto Sector led this category with 10.78 per cent returns while UTI Transportation and Logistic registered 6.6 per cent returns.

Equity Banking, the best performing category of the previous month, came second this month with 6.62 per cent returns. It was closely followed by the Pharma category with 6.04 per cent returns. 

August was the month for the equity funds with all categories giving in positive returns, including the technology funds which were in the red in July. In August, it turned in 3.34 per cent as compared to the (-) 2.43 in the previous month. 

The Tax Planning and Equity Diversified categories both turned in 4.71 and 4.23 per cent respectively. The best among the pack of equity diversified funds was Principal Large Cap with 8.58 per cent returns while the worst fund was Taurus Discovery Stock with a negative return of 0.06 per cent.

The Gold ETFs, for the second consecutive month, have ended in red. They extended their margin of fall from the previous month’s -3.33 per cent to -7.34 per cent. The high prices that attracted the gold speculators have led to the downfall of gold, as this has severely impacted the gold off-take among consumers. 

In the category of debt funds, none of the funds posted negative returns. Even the gilt funds that were in red last month, returned positively with 0.76 per cent returns.