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Equity Funds Suffer

Even as the equity markets extended gains, equity fund investors had a tough last week--barring tech funds, all equity categories lost. Debt funds gained even though the bond markets were under pressure last week

Even as the equity markets extended gains, equity fund investors had a tough last week--barring tech funds, all equity categories lost. Debt funds gained even though the bond markets were under pressure last week.

EQUITY FUNDS

The Leaders: Technology funds lead the pack of gainers. The seven-fund category added 1.83 per cent but could not beat the 2.82 per cent return of the benchmark BSE IT Index. Among the technology funds, Kotak Tech managed to outperform the benchmark with a gain of 2.86 per cent.

The Laggards: Among the equity funds, pharma funds lost the most last week. The five-member category slipped 1.23 per cent as against the 0.85 per cent loss of the benchmark BSE Healthcare Index. Franklin Pharma, though, lost 0.69 per cent to outperform the benchmark index.

Diversified and tax-planning funds: Diversified equity funds lost an average 0.53 per cent, while tax-planning funds ended the week down 0.77 per cent. Both beat the 1.84 per cent return of the benchmark Sensex.

Top-5 diversified equity funds: UTI Index Select Equity (1.86 per cent), ING Vysya Nifty Plus (1.74 per cent), LICMF Sensex Advantage (1.48 per cent), Taurus Discovery Stock (1.28 per cent) and GIC Growth Plus II (1.24 per cent).

Bottom-5 diversified equity funds: Tata Dividend Yield (-2.97 per cent), Birla Mid Cap (-2.50 per cent), Canexpo (-2.41 per cent), Magnum Midcap (-2.39 per cent), and UTI Dividend Yield (-2.38 per cent).

Top-5 tax-planning funds: Franklin India Index Tax (1.61 per cent), Alliance Capital Tax Relief '96 (1.14 per cent), ING Vysya Tax Savings (0.77 per cent), LICMF Tax Plan (0.75 per cent), and Franklin India Taxshield (0.14 per cent).

Bottom-5 tax-planning funds: Tata Dividend Yield (-2.97 per cent), Birla Mid Cap (-2.50 per cent), Canexpo (-2.41 per cent), Magnum Midcap (-2.39 per cent), and UTI Dividend Yield (-2.38 per cent).

Among other categories, FMCG and petro funds lost an average 0.82 and 0.05 per cent, respectively. Auto funds lost 1.20 per cent, while banking funds slipped 0.19 per cent. Equity oriented hybrid funds, which normally maintain 60:40 equity, debt ratio, too shed 0.37 per cent last week.

BOND FUNDS

Barring the 0.10 loss of medium and long term gilt funds, all bond funds' categories posted positive returns last week. Medium-term debt funds gained 0.02 per cent. Debt short-term (0.09 per cent), floaters (0.10 per cent), ultra short-term (0.10 per cent) and short-term gilt (0.07 per cent) funds too delivered positive returns. MIPs added 0.10 per cent.



How They Fared
Objective  Return
Equity: Tax Planning -0.77
Equity: Diversified -0.53
Equity: Pharma -1.23
Equity: Auto -1.2
Equity: Banking -0.19
Hybrid: Equity-oriented -0.37
Equity: FMCG -0.82
Equity: Technology 1.83
Hybrid: Monthly Income 0.01
Equity: Petroleum -0.05
Debt: Medium-term 0.02
Debt: Short-term 0.09
Debt: Floating Rate 0.1
Debt: Ultra Short-term 0.1
Gilt: Short-term 0.07
Gilt: Medium & Long-term -0.1
Sensex  1.84
BSE IT  2.82
BSE HC  -0.85
BSE FMCG  -0.02