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An Average Week for MFs

Equity mutual funds showed no clear trend in the week ended February 25, 2005. Debt funds, though, continued their good show and delivered positive returns for the fifth successive week

Equity mutual funds showed no clear trend in the week ended February 25, 2005. Debt funds, though, continued their good show and delivered positive returns for the fifth successive week.

Equity Funds
FMCG, auto, banking and diversified equity funds gained, while all other equity funds' categories lost over the week.

The three-fund category of FMCG funds once again beat the benchmark BSE FMCG Index by a good margin--the category gained 0.70 per cent as against 1.01 per cent loss of the benchmark index. All the three funds outperformed the benchmark. Magnum FMCG was the only fund in the category to lose (-0.22 per cent) over the week.

After delivering negative returns in the week ended February 18, 2005, both auto and banking stocks recovered and returned 0.20 and 0.31 per cent, respectively.

Diversified equity funds also put up a good show and gained 0.16 per cent to beat the negative 0.22 per cent return of benchmark BSE Sensex. BoB Growth (3.38 per cent), Magnum Emerging Businesses (2.88 per cent), GIC Growth Plus II (2.52 per cent), Magnum Contra (2.42 per cent) and Taurus Starshare (2.36 per cent) were the top five gainers of the week.

Canexpo (-4.23 per cent), Canequity Diversified (-2.66 per cent), Alliance Buy India (-1.81 per cent), Chola Opportunities (-1.80 per cent) and Kotak Opportunities (-1.43 per cent) lost the most.

Tax-planning funds too slipped 0.24 per cent over the week and marginally underperformed the benchmark BSE Sensex. Magnum Taxgain (1.63 per cent), Franklin India Taxshield (1.49 per cent), Tata Tax Saving (1.14 per cent), though, delivered positive returns and emerged out as the top three gainers of the week. Canequity Tax Saver was the biggest loser of the week--the fund lost 5.42 per cent.

Last time's top performing category of tech funds lost heavily in the week ended February 25. Tech funds dipped 1.12 per cent to underperform the 0.36 per cent loss of benchmark BSE IT Index. Only Prudential ICICI Technology (-0.29 per cent) succeeded in outperforming the benchmark index. Alliance New Millennium shed 296 per cent to become the worst performing tech fund of the week.

Pharma funds were the second biggest losers of the week--the category dipped 0.94 per cent and underperformed the negative 0.68 per cent return of benchmark BSE Healthcare Index. Petro funds too ended down 0.31 per cent.

Equity-oriented hybrid funds too followed the negative trend and slipped a marginal 0.01 per cent over the week.

Bond Funds
All bond funds categories managed positive returns for the fifth straight week ended February 25, 2005.

Income funds, debt short-term and floating rating funds gained 0.10 per cent each. Gilt medium and long-term funds and cash funds added 0.09 per cent each, while gilt short-term funds rose 0.07 per cent. MIPs, which maintain a small exposure to equities, also gained 0.06 per cent.


How They Fared
Objective  Return
Equity: Tax Planning -0.24
Equity: Diversified 0.16
Equity: Pharma -0.94
Equity: Auto 0.20
Equity: Banking 0.31
Hybrid: Equity-oriented -0.01
Equity: FMCG 0.70
Equity: Technology -1.12
Hybrid: Monthly Income 0.06
Equity: Petroleum -0.31
Debt: Medium-term 0.10
Debt: Short-term 0.10
Debt: Floating Rate 0.10
Debt: Ultra Short-term 0.09
Gilt: Short-term 0.07
Gilt: Medium & Long-term 0.09
BSE Sensex  -0.22
BSE IT Index  -0.36
BSE Healthcare Index  -0.68
BSE FMCG Index  -1.01