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Banking Funds Give Highest Return in July

FMCG funds return with second best average return, gold ETFs worst performers

Banking sector equity funds emerged as the best performing fund category in July with an average return of 7.73 per cent, 0.54 per cent higher than the return given by BSE Bankex index. FMCG funds with an average 4 per cent monthly jump in net asset value (NAV) returned with second best figures. Equity diversified, tax-saving and technology sector funds clocked 2.41 per cent, 2.39 per cent and 2.34 per cent average jump in NAV respectively.

Banking sector stocks rode on good first quarter results posted by most banks and the same was reflected in the performance of sector funds, said Arun Khurana, fund manager, UTI Mutual Fund. The average returns from diversified and tax-saving funds were higher than both the benchmark indices - Sensex (0.95 per cent) and Nifty (1.04 per cent). Among the diversified equity funds, Magnum Emerging Business Fund gave the highest return of 8.36 per cent followed by IDFC Premier Equity Plan A and IDFC Premier Equity Plan B (7.63 per cent), Taurus Discovery (6.4 per cent) and DSP BlackRock Micro Cap Fund (5.8) per cent return. In the tax saving funds category, Taurus Tax Shield (4.62 per cent), IDFC Tax Advantage (4.55 per cent) and Escorts Tax Plan (4.32 per cent) were the top three performers in July.

Among other equity funds, the average index funds return was 1.97 per cent, while the pharma sector funds gave a negative average return of 3.1 per cent.

In the hybrid category, equity-oriented funds gave an average return of 1.78 per cent, while the debt-oriented funds saw an average 0.68 per cent increase in NAV. Monthly income plans gave an average return of 0.36 per cent in July.

Gold exchange-traded funds (ETFs) were the worst performing funds during the month with NAV of the category showing a 6.1 per cent drop. Gold prices on NCDEX dropped from Rs 18,860 per 10 gram to Rs 17,880 in July, a drop of over 5 per cent.

In debt fund categories, long-term floating rate funds gave the highest average monthly return of 0.48 per cent followed by liquid (0.45 per cent) and ultra short term funds (0.44 per cent).

Gilt funds (medium and long-term) posted a negative return of 0.34 per cent, while the average NAV of short-term gilt funds dropped by 0.03 per cent.

The benchmark 10-year government bond prices fell last week after the Reserve Bank of India (RBI) hiked the repo and reverse repo rate by 0.25 per cent and 0.50 per cent respectively. On Friday, the yield on 10-year bond was 7.82 up from Thursday's close of 7.78 per cent.

FundCategory/Benchmarks  1-Month  1-Year  2-Years  3-Years  5-Years
Equity: Banking 7.73 41.1 28.8 11.1 23.1
Equity: FMCG 4.00 44.6 32.5 19.0 20.1
Equity: Speciality 4.00 15.3 9.36 4.70 18.2
Equity: Diversified 2.41 26.6 17.2 6.61 18.8
Equity: Tax Planning 2.39 26.6 16.7 6.69 17.1
Equity: Technology 2.34 38.2 15.3 0.19 15.6
Equity: Index 1.97 19.4 15.9 5.10 17.4
Hybrid: Equity-oriented 1.78 20.5 15.6 7.65 16.0
Hybrid: Asset Allocation 1.15 8.79 10.1 5.13 12.6
Hybrid: Debt-oriented 0.68 10.7 11.3 8.10 10.8
Hybrid: Arbitrage 0.49 3.73 5.24 6.07 6.67
Debt: Floating Rate Long-term Inst 0.48 5.58 6.96 7.48 7.15
Debt: Speciality 0.46 4.66 6.70 7.47 
Debt: Ultra Short-term Institutional 0.45 4.26 5.82 6.61 6.65
Debt: Liquid Plus Inst 0.44 4.80 6.29 7.02 6.96
Debt: Floating Rate Short-term Inst 0.43 4.13 5.62 6.61 6.71
Debt: Floating Rate Short-term 0.42 4.30 5.86 6.68 6.66
Debt: Ultra Short-term 0.42 3.82 5.22 6.21 6.32
Debt: Liquid Plus 0.41 4.41 5.77 6.67 6.14
Debt: Floating Rate Long-term 0.40 4.95 6.46 7.02 6.77
Hybrid: Monthly Income 0.36 6.75 9.73 7.35 8.51
Debt: Short-term 0.18 4.76 8.12 7.89 7.44
Debt: Short-term Institutional 0.18 5.09 8.14 8.09 7.64
Debt: Medium-term Institutional 0.02 4.41 7.86 7.06 6.53
Debt: Medium-term -0.01 4.12 7.81 6.93 6.28
Gilt: Short-term -0.03 2.93 5.13 5.36 5.36
Hybrid: Others -0.05    
Gilt: Medium & Long-term -0.31 2.42 8.47 7.25 6.21
Equity: Pharma -3.10 63.5 32.9 17.9 18.7
BSE 100 1.21 16.9 13.0 6.09 18.6
BSE 200 1.49 19.5 14.2 6.40 18.5
BSE Sensex 0.95 14.0 11.6 4.74 18.5
S&P CNX 500 1.23 18.9 13.8 5.75 17.2
S&P CNX Nifty 1.04 15.8 11.3 5.83 18.3
BSE IT Index 2.93 38.2 21.8 4.03 14.1
BSE Healthcare Index -2.64 47.1 16.0 14.6 14.1
BSE FMCG Index -0.01 18.0 22.9 17.9 19.6
BSE Bankex 7.19 36.3 33.1 12.3 19.4
BSE Auto 1.21 47.4 51.3 19.5 21.6
NSE G-Sec Composite Index -0.79 1.1 9.59 5.56 4.44
NSE MIBOR 0.27 3.35 4.68 5.53 6.06
NSE Treasury Bill Index -0.54 4.08 5.80 6.19 6.40
VR Bond -0.34 2.54 6.88 5.67 5.43
VR MIP 0.02 8.93 9.67 6.86 8.53
VR Balanced 0.72 12.4 10.2 5.79 14.5