Auto Funds Lead the Race

After the recent surge, equity markets closed flat last week. However, most equity funds managed some gains and did better than their respective benchmarks.

It was a tough week for debt fund investors, as liquidity crunch hit the yields. Most long-term debt funds lost over the week.

EQUITY FUNDS The Leader: The two-fund category of auto funds led the race of equity funds with gains of 1.07 per cent. While the UTI Auto Sector fund added 1.70 per cent, the JM Auto Sector fund rose 0.44 per cent last week.

The Laggards: Banking funds lost the most last week. The two-fund category skidded 1.44 per cent, more than the 0.32 per cent loss of benchmark BSE Bankex.

The all-important category of diversified equity and ELSS funds added 0.21 and 0.15 per cent, respectively, as against the 0.30 per cent loss of the Sensex.

Top-5 diversified equity funds:Taurus Starshare (4.10 per cent), UTI Master Value (2.22 per cent), Taurus Discovery Stock (1.68 per cent), UTI Mid Cap (1.64 per cent), and Kotak Opportunities (1.56 per cent).

Bottom-5 diversified equity funds: Magnum Equity (-1.34 per cent), Reliance NRI Equity (-1.20 per cent), UTI Large Cap (-1.04 per cent), Kotak 30 (-1.02 per cent), and Tata Dividend Yield (-0.95 per cent).

Top-5 tax-planning funds: Franklin India Taxshield (1.03 per cent), UTI Equity Tax Savings (0.91 per cent), ING Vysya Tax Savings (0.90 per cent), Sundaram Taxsaver (0.81 per cent), and Libra Taxshield '96 (0.81 per cent).

Bottom-5 tax-planning funds: HDFC Taxsaver (-0.99 per cent), Reliance Tax Saver (-0.46 per cent), Sahara Tax Gain (-0.40 per cent), Chola Tax Saver (-0.39 per cent), and Principal Personal Tax Saver (-0.29 per cent).

Among rest of the equity categories, FMCG funds added 0.75 per cent to outperform the 0.31 per cent gain in the BSE FMCG Index. Technology and pharma funds shed 0.08 per cent and 0.38 per cent to fall short of the 0.23 and 1.49 per cent loss of their benchmarks BSE IT and BSE Healthcare, respectively.

Equity oriented hybrid funds, which normally maintain 60:40 equity, debt ratio, gained a marginal 0.05 per cent last week.

BOND FUNDS Medium-term debt funds skidded 0.12 per cent, while medium and long-term gilt funds added an average 0.09 per cent last week. Debt short-term funds lost -0.02 per cent. Ultra short-term (0.10 per cent) and short-term gilt (0.07 per cent) funds delivered positive returns. MIPs shed an average 0.11 per cent.

How They Fared Objective    Return Equity: Tax Planning   0.15 Equity: Diversified   0.21 Equity: Pharma   -0.38 Equity: Auto   1.07 Equity: Banking   -1.44 Hybrid: Equity-oriented   0.05 Equity: FMCG   0.75 Equity: Technology   -0.08 Hybrid: Monthly Income   -0.11 Equity: Petroleum   0.15 Debt: Medium-term   -0.12 Debt: Short-term   -0.02 Debt: Ultra Short-term   0.10 Gilt: Short-term   0.07 Gilt: Medium & Long-term   0.09 Sensex    -0.30 BSE IT    -0.23 BSE HC    -1.49 BSE FMCG    0.31 BSE Bankex    -0.32