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FMCG Funds Race Ahead

A good monsoon triggered a rally in FMCG stocks last week. The three-fund category of FMCG funds cashed in on the opportunity and gained 1.71 per cent

Equity markets crossed yet another milestone last week. The Sensex closed at a historic 7,210.77 mark. The Nifty too rose 0.80 per cent. Barring auto and petro funds, all equity categories enjoyed the rally and delivered positive returns.

Bond fund investors, though, could not sustain last week's good show. They suffered on back of a liquidity concern in the debt markets.


The Leaders:
A good monsoon triggered a rally in FMCG stocks last week with the benchmark index surging 2.89 per cent. The three-fund category of FMCG funds cashed in on the opportunity and gained 1.71 per cent.

The Laggards: Petro and auto funds slipped last week. They lost 0.32 and 0.15 per cent, respectively.

Diversified and tax-planning funds: Diversified equity funds posted an average 0.89 per cent return, while tax-planning funds ended the week up 0.99 per cent. Both beat the 0.87 per cent return of the benchmark Sensex.

Top-5 diversified equity funds: Canemerging Equities (4.63 per cent), Taurus Discovery Stock (4.40 per cent), JM Equity (4.04 per cent), Magnum Emerging Businesses (3.87 per cent), and Birla MNC (2.80 per cent).

Bottom-5 diversified equity funds: HSBC India Opportunities (-1.25 per cent), BoB Growth (-1.09 per cent), Magnum Global (-0.62 per cent), HSBC Equity (-0.55 per cent), and Alliance Basic Industries (-0.38 per cent).

Top-5 tax-planning funds: Canequity-Tax Saver (3.77 per cent), Birla Equity Plan (2.14 per cent), Franklin India Taxshield (2.09 per cent), UTI Equity Tax Savings (1.95 per cent), and Magnum Taxgain (1.71 per cent).

Bottom-5 tax-planning funds: Escorts Tax Plan (-1.42 per cent), HDFC Long Term Advantage (-0.12 per cent), BoB ELSS '96 (0.04 per cent), Principal Personal Tax Saver (0.19 per cent), and Principal Tax Savings (0.34 per cent).

Among other equity categories, technology funds gained 1.53 per cent to outperform the 1.25 per cent gain of the benchmark BSE IT Index.

Pharma and banking funds too gained 1.60 and 1.11 per cent but fell short of the 1.62 and 2.17 per cent return of their benchmarks BSE Heathcare and BSE Bankex, respectively.

Equity oriented hybrid funds, which normally maintain 60:40 equity, debt ratio, added 0.78 per cent last week.


Bond funds had a mixed week. While the shorter maturity funds maintained their last week's performance, medium to long-term bond funds suffered on back of a rise in the bond yields. Medium-term debt funds managed 0.02 per cent, while medium and long-term gilt funds slipped 0.14 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 delivered positive returns. MIPs added 0.15 per cent.

How They Fared
  Objective  Return
  Equity: Tax Planning 0.99
  Equity: Diversified 0.89
  Equity: Pharma 1.6
  Equity: Auto -0.15
  Equity: Banking 1.11
  Hybrid: Equity-oriented 0.78
  Equity: FMCG 1.71
  Equity: Technology 1.53
  Hybrid: Monthly Income 0.15
  Equity: Petroleum -0.32
  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 -0.14
  Sensex 0.87
  BSE IT 1.25
  BSE HC 1.62
  BSE FMCG 2.89