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Red Spread

Slide in the equity markets continued last week. Funds suffered as well. Not even a single equity fund managed a positive return during the week

Weak global markets, rising concerns over the inflationary pressures and the fear of soaring interest rates kept the Indian bourses in the red during the week ended June 2. The Sensex lost 358 points during the week to end at 10,451.33; while the Nifty closed at 3,091.3, down 118 points. Foreign institutional investors continued to be net sellers pulling out some Rs 1,457 crore from the markets. The imposition of the securities transaction tax (STT) from June 1 too contributed to the negative sentiments on the Street. Although, mutual funds supported the markets and pumped in over Rs 858 crore, their performance reflected the gloom on the bourses. None of the equity funds' categories managed to generate positive returns in the week under review.

Diversified Equity Funds
The category of diversified equity funds lost 4.42 per cent in the week ended June 2, as compared to the Sensex's 3.31 per cent dip. Not even a single fund in this category generated positive return during the week.

The Top Five: Sundaram Rural India (-1.02 per cent); DBS Chola Opportunities (-1.53 per cent); Kotak Global India (-2.18 per cent); Reliance NRI Equity (-2.41 per cent); Birla Asset Allocation Aggressive (-2.44 per cent).

The Bottom Five: Sahara Mid-Cap Fund (-9.00 per cent); Standard Chartered Premier Equity (-7.87 per cent); Magnum COMMA (-7.41 per cent); HSBC Midcap Equity (-7.29 per cent); Can D'Mat (-7.25 per cent).

Tax Planning Equity Funds
In a week when all sectoral indices ended in the negative territory, the category of tax planning equity funds was the second biggest loser (-5.43 per cent) among all fund groups, a tad better than the equity pharma funds' category that registered a decline of 6.06 per cent.

The Top Five: Franklin India Taxshield (-3.01 per cent); DBS Chola Tax Saver (-3.21 per cent); Franklin India Index Tax (-3.56 per cent); HDFC LT Advantage (-4.05 per cent); Fidelity Tax Advantage (-4.16 per cent).

The Bottom Five: ING Vysya Tax Savings (-8.25 per cent); Principal Personal Tax Saver (-7.98 per cent); Reliance Tax Saver (-7.35 per cent); Prudential ICICI Tax Plan (-7.33 per cent); Kotak Tax Saver (-6.82 per cent).

Hybrid Equity-Oriented
The hybrid equity-oriented funds' group too lost 3.02 per cent during the week ended June 2.

The Top Five: Prudential ICICI Advisor-Moderate (-1.57 per cent); FT India Life Stage FoF 30s (-1.84 per cent); Birla Asset Allocation Moderate (-1.87 per cent); HDFC Children's Gift-Inv (-1.91 per cent); Canbalance II (-2.01 per cent).

The Bottom Five: ING Vysya Balanced (-5.04 per cent); LICMF ULIS (-4.15 per cent); JM Balanced (-3.88 per cent); Principal Child Benefit (-3.67 per cent); Principal Balanced (-3.56 per cent). Debt fund investors had some reasons to smile. Almost all debt fund categories managed to generate positive returns in the week under review.