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Tuesday, November 02, 2010

Weekly Scenario: Debt Funds Witness Gain While Equity Funds End as Loser

Indian stock indices fell during the week ended 29 October 2010 as October derivative expired. Both the benchmark indexes -Nifty and the Sensex were extremely volatile due to quarterly earnings and weak global cues. Equity funds had felt the heat as their NAV slipped during one week period ended 29 October 2010. On the other hand debt funds marched upward as most of the funds witnessed gain during the week end period. 

India's food inflation slowed to a 50-week low as supplies rise due to monsoon. Food inflation declined sharply to 13.75% for the week ended 16 October, on improved kharif supplies and fall in prices of certain vegetables, especially potatoes and onions. 

In the major equity fund category, NAV of Equity Diversified Funds declined the most by 1.14%, followed by Tax Funds by 0.87% and Index Funds declined marginally by 0.86% during the one week period 29 October 2010. Among the sub categories in debt fund, Floating Rate Income Funds – Short Term, Liquid Funds, Ultra Short Term Funds and Floating Rate Income Funds – Long Term surged by 0.12% each. In the ETF category, Gold ETFs gained 1.48% while Other ETFs declined 1.02%. 

Among the sub categories in the hybrid funds, NAV of Arbitrage Funds surged 0.36%, while Monthly Income Plans, Debt Oriented Balanced Funds and Equity Oriented Balanced Funds witnessed fall by 0.12%, 0.22% and 0.64% respectively. 

Debt Funds
 
Among the Debt funds, Birla Sun Life Govt Sec - Long Term and SBI Dynamic Bond Fund gained 0.24% each, L&T Gilt Investment Plan added 0.23%, DWS Premier Bond Fund & Sundaram Flexible – FIP surged 0.22% each and Religare Gilt – Long Duration climbed 0.21%. Axis Income Saver was the worst performer declining by 0.30%, while ICICI Pru Gilt Fund – Treasury – PF Option and ICICI Pru Gilt Fund - Treasury declined 0.19% and 0.13% respectively. 

Equity Diversified Funds
 
NAV of Equity Diversified Funds category declined by 1.14% during the week ended 29 October 2010 compared with a marginal gain of 0.93% in the previous week end period. Among the schemes in the equity diversified category, Birla Sun Life Buy India Fund gained the maximum of 1.02%, followed by Edelweiss Absolute Return Equity Fund which climbed 0.78%, Reliance Small Cap Fund rose 0.73% and Taurus Ethical Fund jumped 0.63% among others. Sundaram PSU Opportunities Fund and JM Small & Mid-Cap Fund were the worst performers in this category declining 3.78% and 3.72% respectively. 

Tax Savings Funds
 
Tax savings Funds category declined by 0.87%, which is lower than their previous week gain of 0.90%. HDFC Long Term Advantage Fund was the top performer in this category with weekly gain of 0.62%, followed by Edelweiss ELSS Fund with 0.47% and Birla Sun Life Tax Plan with 0.34% among others. JM Tax Gain Fund and DWS Tax Saving Fund had faced maximum slide in their NAV. Their NAVs slipped 2.67% and 1.69% respectively. 

Index Funds
 
The NAV Index Fund category declined by 0.86% compared with previous week gain of 0.31%. All the schemes in this category ended as losers during the one week period. ICICI Pru Nifty Junior Index Fund and IDBI Nifty Junior Index Fund witnessed maximum slide in their NAV. Their NAV's slipped 1.16% and 1.15% respectively. 

Sector Funds
 
NAV of Pharma Funds category declined 0.85%, with Reliance Pharma Fund ending the week as the biggest loser with a fall in NAV by 0.85%; it was followed by UTI-Pharma & Healthcare Fund which lost 0.77%. 

Banking Funds category lost 0.62%, with JM Financial Services Sector Fund advancing by 0.29%. Sundaram BNP Paribas Financial Services Opportunities Fund lost 1.33% and Sahara Banking & Financial Services Fund lost 0.95%, which being the schemes which had witnessed highest fall in NAV during the one week time period. 

FMCG Funds category declined by 0.41% over one week period ended 29 October 2010. SBI Magnum SFU – FMCG Fund was the biggest loser in this category. It's NAV declined by 0.85% over one week period. 

Infotech Funds category lost 2.49% over one week period ended 29 October 2010. DSP BR Technology. com and SBI Magnum SFU – Infotech Fund ended as biggest losers, witnessing a fall in NAV by 3.31% and 2.49% respectively over one week time period. 

Hybrid Funds
 
Benchmark Equity & Derivatives Opportunities Fund and ICICI Pru Balanced Fund were the highest gainers in equity oriented balanced fund category as their NAV appreciated by 0.38% and 0.11% respectively. ICICI Pru Child Care Plan-Gift Plan and Escorts Balanced Fund were the worst performer in this category declining 1.83% and 1.53% respectively. 

HDFC Children's Gift Fund-Savings Fund was the highest gainer in debt oriented balanced fund category as its NAV appreciated by 0.19%. SBI Magnum Children Benefit Fund was the next highest gainer by 0.18%. LICMF Children's Fund and Templeton India Pension Plan were the worst performers in this category with a fall in return by 0.69% and 0.43% respectively.
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