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Markets Crash Hit Equity Funds

Equity funds had tough time last week as well. Under pressure of falling stock prices, all equity funds' categories lost. Debt fund investors too had to reconcile with thin returns

Equity funds had tough time last week as well. Under pressure of falling stock prices, all equity funds' categories lost. On the debt side as well, investors had to reconcile with thin returns on back of a rise in bond yields.

EQUITY FUNDS
The Leader: Though all equity categories lost, technology funds lost the least. The seven-member category shed 0.92 per cent to underperform the 0.52 per cent loss of benchmark BSE IT Index. Three tech funds, including Birla Sun Life New Millennium (-0.17 per cent), DSPML Technology.com (-0.30 per cent), and UTI Software (-0.32 per cent), managed to beat their benchmark.

The Laggards: Banking funds lost heavily last week. The two-fund category skidded 5.79 per cent to underperform the 2.15 per cent loss of benchmark BSE Bankex.

Diversified equity and ELSS funds too lost substantially. The two categories shed 2.76 and 3.14 per cent, respectively, to fall way behind the 1.62 per cent loss of benchmark Sensex.

Top-5 diversified equity funds: Reliance Regular Savings Equity (-0.01 per cent), Magnum Multiplier Plus (-0.03 per cent), Sundaram CAPEX Opportunities (-0.76 per cent), ABN AMRO Dividend Yield (-0.80 per cent), and HDFC Top 200 (-0.81 per cent).

Bottom-5 diversified equity funds: Taurus Discovery Stock (-9.82 per cent), Canfortune '94 (5.82 per cent), Cangrowth Plus (-5.60 per cent), Tata Growth (5.27 per cent), and HSBC Midcap Equity (-5.09 per cent).

Top-5 tax-planning funds: Franklin India Index Tax (-1.62 per cent), Birla Equity Plan (-1.85 per cent), Reliance Tax Saver (-1.91 per cent), HDFC Taxsaver (-1.93 per cent), and UTI Equity Tax Savings (-2.18 per cent).

Bottom-5 tax-planning funds: Libra Taxshield '96 (-5.18 per cent), Tata Tax Saving (-4.91 per cent), Principal Personal Tax Saver (-4.75 per cent), Escorts Tax Plan (-4.30 per cent), and Prudential ICICI Tax Plan (-4 per cent).

Among rest of the equity categories, pharma funds lost 4.39 per cent but outperformed the 5.89 per cent loss of the BSE Healthcare Index. With a loss of 1.80 per cent, FMCG funds too beat the 2.15 per cent decline in their benchmark BSE FMCG Index.

Equity oriented hybrid funds, which normally maintain 60:40 equity, debt ratio, lost 1.72 per cent last week.

BOND FUNDS
Medium-term debt funds added a marginal 0.02 per cent, while medium and long-term gilt funds gained an average 0.04 per cent. Debt short-term (0.06 per cent), ultra short-term (0.10 per cent) and short-term gilt (0.06 per cent) funds delivered positive returns. MIPs shed an average 0.42 per cent.