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Equity Funds Suffer

All equity funds' categories suffered because of the crash in the stock markets in the week ended January 7, 2005. However, they did well to beat their respective benchmarks

Equity Funds
With equity markets in red and the 30-stock BSE Sensex suffering its highest weekly loss since mid-May 2004, equity funds delivered negative returns in the week ended January 7, 2005. However, all the equity funds' categories managed to beat their respective benchmarks.

The two-member petro funds' category lost the least—down just an average 0.59 per cent. FMCG funds, though slipped in the negative zone, but managed to slowdown the fall by losing 0.75 per cent against the negative 1.32 per cent return of the benchmark BSE FMCG Index.

Pharma funds suffered the most because of the fall in the equity markets. The five-fund category lost 3.03 per cent, but managed to outperform the benchmark BSE Healthcare Index which shed a whopping 5.04 per cent over the week.

Speculation ahead of the forthcoming third quarter company results turned the technology counters extremely volatile last week. Over the week, the BSE IT Index lost 2.50 per cent. IT funds, however, managed to guard their downside a bit and lost 1.95 per cent.

Tax-planning and diversified funds too beat the negative 2.76 per cent return of their benchmark Sensex. The two categories lost 2.02 and 2.33 per cent, respectively.

Equity oriented hybrid funds too suffered because of the crash in the equity markets. The category lost 1.56 per cent over the week.

Bond Funds
Barring MIPs, all bond funds' categories delivered positive returns in the week ended January 7, 2005.

While cash funds gained 0.09 per cent, income funds ended the week up 0.16 per cent. Debt Short-term funds added 0.09 per cent, while MIPs lost 0.35 per cent.

Floaters (0.10 per cent) and gilt short-term funds (0.18 per cent) also delivered positive returns. Gilt Medium & Long-term funds gained 0.38 per cent over the week.

How They Fared
Objective  Return
Equity: Tax Planning -2.02
Equity: Diversified -2.33
Equity: Pharma -3.03
Hybrid: Equity-oriented -1.56
Equity: FMCG -0.75
Equity: Technology -1.95
Hybrid: Monthly Income -0.35
Equity: Petroleum -0.59
Debt: Medium-term 0.16
Debt: Short-term 0.09
Debt: Floating Rate 0.10
Debt: Ultra Short-term 0.09
Gilt: Short-term 0.18
Gilt: Medium & Long-term 0.38
BSE Sensex -2.76
BSE IT Index -2.50
BSE Healthcare Index -5.04
BSE FMCG Index -1.32