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Tech Funds' Woes Continue

Equity funds staged a comeback on back of the last week's recovery in the stock market. Barring tech and pharma funds, all the equity categories posted positive returns

Equity funds staged a comeback on back of the last week's recovery in the stock market. Barring tech and pharma funds, all the equity categories managed some gain. All bond funds' categories delivered positive returns even as the benchmark yield went up eight basis points over the week.


The Leader:
Auto funds were in the limelight. After incurring losses for two successive weeks, the two-member auto funds' category raced to a 2.70 per cent gain. JM Auto Sector fund added 3.10 per cent, while UTI Auto Sector fund returned 2.31 per cent.

The Laggard: Tech funds' woes continued. The seven-fund category dipped 0.48 per cent to underperform the 0.96 per cent return of the benchmark BSE IT Index. However, not all funds proved disappointing. Prudential ICICI Technology gained nearly 2 per cent, while DSPML Technology.com added 1.18 per cent to beat the benchmark. Magnum IT suffered. The fund lost a whopping 6.15 per cent.

Pharma funds too posted negative returns for the third successive week. The five-fund category shed 0.40 per cent to underperform the 0.27 per cent loss of the benchmark BSE Healthcare Index. Franklin Pharma, though, gained 0.22 per cent.

Diversified and tax-planning funds: Diversified equity funds gained 1.38 per cent, while tax-planning funds ended the week up 1.26 per cent. Both, though, underperformed the 1.57 per cent gain of their benchmark Sensex.

Top-5 diversified funds: Bonanza Exclusive Growth (4.35 per cent), JM Equity (4.17 per cent), Reliance Growth (4.09 per cent), Tata Select Equity (3.87 per cent), and Alliance Equity (3.57 per cent).

Bottom-5 diversified funds: LICMF Opportunities (-2.78 per cent), LICMF Growth (-2.43 per cent), LICMF Equity (-2.34 per cent), Magnum Equity (-2.26 per cent), and GIC Growth Plus II (-2.19 per cent).

Top-5 tax-planning funds: ING Vysya Tax Savings (3.07 per cent), Libra Taxshield '96 (2.78 per cent), Principal Personal Tax Saver Fund (2.77 per cent), Principal Tax Savings (2.73 per cent), and Tata Tax Saving (2.49 per cent).

Bottom-5 tax-planning funds: LICMF Tax Plan (-2 per cent), BoB ELSS '96 (-1.68 per cent), Canequity-Tax Saver (-0.94 per cent), Escorts Tax Plan (0.30 per cent), Franklin India Index Tax (0.54 per cent).

FMCG funds gained 1.50 per cent to outperform the 1.12 per cent return of the benchmark BSE FMCG Index. Petro and banking funds added 0.71 and 0.21 per cent, respectively.

Equity-oriented hybrid funds, which normally maintain a 60:40 equity, debt ratio ended the week up 0.70 per cent.


MIPs, which maintain a small exposure to equities, gained 0.04 per cent in the week ended April 22, 2005. Medium-term debt funds gained 0.12 per cent, while short-term debt funds, floaters and short-term gilt funds added 0.10 per cent each. Gilt medium and long-term funds ended the week up 0.12 per cent. Cash funds delivered 0.09 per cent return.

How They Fared
Objective  Return
Equity: Tax Planning 1.26
Equity: Diversified 1.38
Equity: Pharma -0.40
Equity: Auto 2.70
Equity: Banking 0.21
Hybrid: Equity-oriented 0.70
Equity: FMCG 1.50
Equity: Technology -0.48
Hybrid: Monthly Income 0.04
Equity: Petroleum 0.71
Debt: Medium-term 0.12
Debt: Short-term 0.10
Debt: Floating Rate 0.10
Debt: Ultra Short-term 0.09
Gilt: Short-term 0.10
Gilt: Medium & Long-term 0.12
BSE Sensex  1.57
BSE IT Index  0.96
BSE Healthcare Index  -0.27
BSE FMCG Index  1.12
BSE Bankex  -0.27