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FMCG Funds Continue to Lead

FMCG funds continued their good show to lead the equity funds' categories, while debt funds suffered on account of rise in fuel prices, high inflation and tight liquidity position in the bond market

Equity Funds
FMCG funds' category maintained its leadership position for the second successive week ended November 5, 2004, and added a whopping 6.19 per cent against the 4.52 per cent gain of the benchmark BSE FMCG Index. Last week they had returned 2.16 per cent after a three-week losing streak.

All other equity funds' categories, though improved on their last week's performance, failed to beat their benchmarks.

Pharma funds gained 3.56 per cent on an average but fell short of benchmark BSE Healthcare Index, which added 3.78 per cent over the week. Diversified and tax-planning funds followed closely with a return of 3.53 and 3.55 per cent, respectively. However they too could not beat the 3.86 per cent gain of the benchmark BSE Sensex. Technology funds added 2.26 per cent to underperform benchmark BSE IT Index, which gained 3.18 per cent. Petro funds put up an impressive show to gain 4.99 per cent.

Equity-oriented hybrid funds' category too benefited from the action in the stock market to end the week up 2.25 per cent.

Debt Funds
Oil price hike, inflation and tight liquidity position played spoilsport in the bond market and hence hit the debt funds hard. Income funds posted negative returns for the second consecutive week. They lost 0.30 per cent. Gilt medium and long-term and gilt short-term funds' categories too suffered--they lost 0.82 and 0.02 per cent, respectively. MIPs ended the week up 0.41 per cent mainly because of their equity component. Debt short-term (0.04 per cent), floaters (0.09 per cent) and cash funds (0.09 per cent) delivered positive returns over the week.

How They Fared
Fund Objective  Return
Equity: Diversified 3.53
Equity: Tax Planning 3.55
Equity: Technology 2.26
Equity: Pharma 3.56
Equity: FMCG 6.19
Equity: Petroleum 4.99
Hybrid: Equity-oriented 2.25
Debt: Medium-term -0.30
Hybrid: Monthly Income 0.41
Gilt: Medium & Long-term -0.82
Debt: Short-term 0.04
Debt: Floating Rate 0.09
Debt: Ultra Short-term 0.09
Gilt: Short-term -0.02
BSE Sensex 3.86
BSE IT Index 3.18
BSE Healthcare Index 3.78
BSE FMCG Index 4.52