Monday, February 14, 2011

Weekly Scenario: Debts Funds Inch Up

Indian equities declined for the third consecutive week in row resulting erosion in NAV of equity funds. Mid Cap Funds declined the most by 3.10%, Pharma Funds by 2.79%, Infotech Funds by 2.71% and Multi Cap Funds by 2.47% among others during the week ended 11 February 2011. On the flip side Banking Funds and FMCG Funds witnessed the least erosion of NAV among the equity funds by 0.17% and 1.02% respectively. Industrial production came in with a sluggish growth of 1.6% in December 2010, much weaker than previous month of 3.6% on the back of weaker growth in manufacturing activity. 

Arbitrage Funds had gained marginally by 0.01% while Gold ETF's advanced by 1.08%. Debts funds have been the safer haven during the weak equity market rally. Gilt - Medium & Long Term and Floating Rate Income Funds - Long Term surged the highest among the debt fund category delivering a category return of 0.20% and 0.17% respectively over one-week period ended 11 February 2011. Gilt - Short Term surged up 0.16%, Floating Rate Income Funds - Short Term & Ultra Short Term Funds by 0.15% each, Liquid Funds, Income Funds and Short Term Income Funds by 0.14% each. 

Arbitrage Funds
 
Among the schemes in the Arbitrage Fund category, ICICI Pru Blended - Plan B Option I was the top performer in this category with a return of 0.15% over one week period ended 11 February 2011. It was followed by JPMorgan India Alpha Fund and Benchmark Equity & Derivatives Opportunities Fund with 0.09% each. However nine funds in this category witnessed erosion in NAV, over one week period. Reliance Arbitrage Advantage Fund was the worst performer in this category declining by 0.13%. 

Floating Rate Income Funds
 
Floating Rate Income Funds - Short Term: Escorts Short Term Debt Fund was the top gainer in this category with a return of 0.18% over one week time period. Canara Robeco Floating - STP was the next highest gainer by 0.17%, SBI Magnum Income FRP - Savings Plus Bond, SBI Magnum Insta Cash - Liquid Floater Plan, L&T Floating Rate Fund and Principal Near-Term Fund - Moderate Plan gained 0.16% each. HSBC Floating Rate - ST posted a minimum weekly return in this category, gaining by 0.11%. 

Floating Rate Income Funds - Long Term: Sundaram Flexible - FIP and JM Floater Fund - LTP were the top performers in this category with a return of 0.29% and 0.21% respectively. ICICI Pru Long Term Floating Rate Plan C and HDFC Floating Rate Income - Long Term surged 0.17% each, ICICI Pru Long Term Floating Rate Plan B, Tata Floater Fund and ICICI Pru Long Term Floating Rate Plan A gained 0.16% each. Tata Floating Rate Fund - LTP ended at the bottom of this category gaining by 0.12% over one week time period. 

Gilt Funds
 
Gilt - Medium & Long Term: DWS Gilt Fund and L&T Gilt Investment Plan were the top performers in this category with a return of 0.44% each. It was followed by Edelweiss Gilt Fund which surged up 0.35% and Templeton India G-Sec Fund - LTP by 0.31%. Mirae Asset Gilt Fund - Invest and Mirae Asset Gilt Fund - Savings ended at the bottom of this category posting a weekly return of 0.05% each. 

Gilt - Short Term: Reliance HDFC Gilt Fund Short Term Plan and Tata Gilt Securities Short Maturity Fund - App were the top performers in this category with a return of 0.30% and 0.27% respectively. Reliance Gilt Sec Fund and ICICI Pru Gilt Fund - Treasury were the next top performers, gaining by 0.25% and 0.21% respectively. IDFC G-Sec Fund - STP posted minimum weekly return in this category, gaining by 0.07%. 

Ultra Short Term Funds
 
SBI Short Horizon Debt - UST, IDBI Ultra Short Term Fund, Pramerica Ultra Short Term Bond Fund, JM Money Manager Fund - Super Plan, Templeton India Ultra-Short Bond, Tata Treasury Manager Fund - RIP, Taurus Ultra Short Term Bond, Principal Ultra Short Term, Daiwa Treasury Advantage Fund, JM Money Manager Fund - Super Plus Plan and Baroda Pioneer Treasury Advantage were the top gainers in this category gaining by 0.16% each. Mirae Asset Ultra Short Term Bond ended at the bottom of the category table gaining by 0.10%. 

Liquid Funds
 
Escorts Liquid Plan was the top performer in this category with a return of 0.19%. ICICI Pru Sweep Plan ended at the bottom of this category posting a weekly return of 0.10%.