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Funds Force the Pace

Positive returns were generated by almost all equity fund categories

The week ended May 15 saw the Sensex gain 2.5 per cent over the past one week which was a tad lower than the 4.15 per cent gains that it posted a week before that.

This week all equity fund categories, except for FMCG funds, gave positive returns. Banking funds led the pack with 5.31 per cent returns. Though the category could not outperform its benchmark index BSE Banking which returned 6.13 per cent during the week, but the best fund in the category--JM Financial Services Sector managed to beat the benchmark index with a return of 6.46 per cent.

Technology funds bagged the second position with 2.61 per cent returns. This category too could not match up to its benchmark BSE IT’s 4.6 per cent returns.

Tax Planning and Diversified Equity funds also lagged the Sensex giving returns of 2.07 per cent and 1.78 per cent respectively. However, 9 tax planning funds and 47 diversified equity funds managed to outperform the benchmark index--Sensex.

The tax planning funds with the highest returns were HDFC Taxsaver, Franklin India Taxshield, Bharti AXA Tax Advantage, HDFC LT Advantage and Escorts Tax Plan.

Top five diversified equity funds include HDFC Premier Multi-Cap, HDFC Core & Satellite, Principal Service Industries, Taurus Starshare and Taurus Infrastructure.

The Auto and Pharma funds were the laggards returning 1.04 per cent and 0.4 per cent respectively. The FMCG funds lost 0.89 per cent during the week, becoming the only equity category to post a negative return for the week.

On the debt side, Medium Term Debt funds, Short Term Gilt funds and Medium & Long Term Gilt funds were the three categories to post negative returns. Long Term Floating Rate funds were the best performers with 0.12 per cent returns.

The Monthly Income Plans were able to return a handsome 0.26 per cent with the rise in equity markets.