In contrast to their equity counterparts, all the debt mutual funds landed in the positive terrain in the month of May. The best-performing category was Gilt Medium and Long-Term during this period. The second best performing category was Debt Medium Term which had topped the table last month. Meanwhile, Debt Ultra Short Term continued to be the worst-performing category in the month of May, as it had been in April and March.
Gilt Medium and Long-Term category emerged as the best performer in May. The category clocked 0.79 per cent return, which was 23 basis points (bps) higher than in April. The one-year and five-year trailing returns of this category stood at 2.5 per cent and 6.5 per cent respectively. Out of the total 47 funds in this category, two funds went into the red in May. They were L&T Gilt Investment and UTI G-Sec Inv which posted (-) 0.37 per cent and (-) 0.32 per cent returns respectively. Birla Sun Life GSF Long-Term was the star performer of the month (in this category): it posted a return of 2.49 per cent followed by IDFC GSF PF Plan B with a return of 1.9 per cent.
The Gilt Short Term category posted a return of 0.48 per cent return. It had posted a tad higher return of 0.59 per cent in April. The five-year return of the category stood at 5.49 per cent. The top two performers in this category were Birla Sun Life Gilt Plus Liquid and Birla Sun Life GSF Short-term with returns of 2.03 per cent and 1.14 per cent respectively. Mirae Asset Gilt Savings PF was the worst performer in this category with a return of 0.08 per cent in May.
Debt: Medium term
This category was the second best performer in May. It clocked a return of 0.55 per cent during the month. This was 22 bps lower than its return in April. Its one-year and five-year category returns stood at 4.77 per cent and 6.5 per cent respectively. Out of the 61 funds in this category, only three ended May in the red.
The best-performing fund in this category was Kotak Bond Deposit with a return of 2.14 per cent. The worst-performing fund in this category was Fidelity Flexi Bond Ret with a return of (-) 0.04 per cent.
Liquid Plus and Short Term
The Liquid Plus category showed almost zero momentum in returns in May as compared to the preceding month. It posted a return of 0.38 per cent both in April and in May. Its five-year trailing return stood at 6.2 per cent. All the 48 funds in this category remained in the green in May.
The top two gainers in this category were IDFC Savings Advantage Plan A and JM Money Manager Super which posted returns of 0.50 per cent and 0.48 per cent respectively. Sundaram BNP Paribas Income Plus was the worst performer in this category with a return of 0.13 per cent in May.
After posting rising returns for three months, the Debt Short Term category lost its momentum in May. Its return of 0.37 per cent last month was nearly 22 bps lower than in April. However, it has outperformed its other debt counterparts in trailing one-year and five-year returns, posting returns of 5.3 per cent and 7.5 per cent respectively in these time frames.
The best performing fund in this category was DWS Short Maturity which clocked 0.85 per cent return in May. The next best performer was JM Short-Term which posted a return of 0.72 per cent. The two worst performers under this category were Magnum NRI Inv ST Bond and Mirae Asset Short Term Bond which posted returns of 0.16 per cent and 0.22 per cent respectively during the period.
The Long Term Floating Rate Funds category posted worse returns in May than in the preceding month. It clocked a return of 0.35 per cent in May, a decline of nearly 6 bps compared to the previous month. The trailing one-year and five-year returns for this category were 5.2 per cent and 6.8 per cent respectively.
Magnum Floating Rate Long Term and Kotak Floater Long Term were the best performing funds in this category. These funds posted returns of 0.43 per cent and 0.42 per cent respectively. The worst performer in this category was ICICI Prudential LT Floating Rate A which clocked 0.18 per cent return in May.
Short Term Floating Rate Funds slightly outperformed their long-term counterparts. This category posted a return of 0.38 per cent during May. The trailing one-year and five-year returns for this category were 4.3 per cent and 6.7 per cent respectively.
LICMF Floating Rate Short Term, the biggest fund in this category with asset under management (AUM) of Rs 4,474.2 (as on May 31, 2010), clocked a return of 0.42 per cent. The top two performers in this section were Escorts Floating Rate and Magnum Floating Rate ST which posted returns of 0.44 per cent and 0.43 per cent respectively. The bottom two spots were occupied by HSBC Floating Rate ST Regular and Tata Floating Rate ST, which garnered returns of 0.27 per cent and 0.32 per cent respectively.
Ultra Short Term
As mentioned earlier, this category was the worst performer in the preceding two months and fared worst in May as well. It posted a return of 0.34 per cent. This category had garnered 0.32 per cent return in April and 0.31 per cent in March.
All the 53 funds in this category ended in the green during the month.
The top quartile in this category was occupied by Escorts Liquid, JP Morgan India Liquid and Sahara Liquid Variable Pricing, which posted returns of 0.44 per cent, 0.41 per cent and 0.4 per cent respectively. The biggest losers in this category were Religare Overnight and Mirae Asset Liquid which clocked returns of 0.23 per cent and 0.24 per cent respectively.