Equity markets were on fire last week. While the Sensex closed at its all-time high, the Nifty too raced to 2,194 points mark. Surprisingly, equity funds failed to fully capitalise on the markets rally. Barring banking funds, none of the categories could beat their benchmarks. Bond fund investors, though, had a good last week.
EQUITY FUNDS
The Leaders: Hopes of revival of the monsoon trigged a rally in the FMCG stocks last week with the benchmark index surging 5.08 per cent. The three-fund category of FMCG funds benefited from the rally and gained an average 2.05 per cent.
The Laggards: Auto funds were the only losers last week. The two-fund category slipped 0.19 per cent.
Diversified and tax-planning funds: Diversified equity funds gained an average 1.52 per cent, while tax-planning funds ended the week up 1.66 per cent. Both failed to beat the 3.51 per cent return of the benchmark Sensex.
Top-5 diversified equity funds: Reliance NRI Equity (5.81 per cent), JM Equity (3.64 per cent), BoB Growth (3.33 per cent), Cholamandalam Growth (3.32 per cent), and Franklin India Opportunities (3.32 per cent).
Bottom-5 diversified equity funds: Sahara Mid-Cap Fund (-1.26 per cent), GIC Fortune '94 (-0.55 per cent), Franklin India Prima (-0.37 per cent), Birla Mid Cap (-0.29 per cent), and Reliance Regular Savings Equity (0.02 per cent).
Top-5 tax-planning funds: Libra Taxshield '96 (7.22 per cent), Franklin India Index Tax (3.30 per cent), Canequity-Tax Saver (3.14 per cent), BoB ELSS '96 (2.40 per cent), and Sahara Tax Gain (2.15 per cent).
Bottom-5 tax-planning funds: Escorts Tax Plan (-0.48 per cent), Prudential ICICI Tax Plan (0.28 per cent), Sundaram Taxsaver (0.29 per cent), Alliance Capital Tax Relief '96 (0.65 per cent), and Birla Equity Plan (0.86 per cent).
Among other equity categories, technology funds gained 1.78 per cent but fell short of the 2.01 per cent return of the BSE IT Index.
Equity oriented hybrid funds, which normally maintain 60:40 equity, debt ratio, added 1.24 per cent last week.
BOND FUNDS
All the bond funds' categories delivered positive returns last week. Medium-term debt funds gained 0.21 per cent, while gilt medium and long term funds added 0.37 per cent. Debt short-term (0.12 per cent), floaters (0.10 per cent), ultra short-term (0.10 per cent) and short-term gilt (0.09 per cent) funds too delivered positive returns. MIPs added 0.42 per cent.
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