Tuesday, March 08, 2011

Weekly Scenario: Equity Funds Gain

Renewed FII buying along with short covering post the Union Budget helped Indian equity markets bounce back from recent lows and close the week ended 4 March 2011 on a strong note. Market sentiments were also boosted by some easing in international oil prices. Mid and Small cap stocks continued to underperform large caps. Among the major categories in equity funds, Index Funds and Large Cap Funds were the highest gainers by 4.22% and 4.08% respectively over the one week period ended 4 March 2011. It was followed by Tax Saving Funds by 3.62%, Multi Cap Funds by 3.57% and Mid Cap Funds by 2.98% 

Indian bond markets gained as the fiscal deficit and borrowing projections for FY12 came in below market expectations. Further easing in primary article inflation index levels also aided sentiment. Among the debt fund categories, Gilt Fund – Medium & Long Term gained the highest by 0.27%, followed by Gilt Funds – Short Term by 0.22%, Income Funds by 0.20%, Floating Rate Income Funds – Long Term by 0.18%, Short Term Income Funds by 0.17%, Floating Rate Income Funds – Short Term, Ultra Short Term Funds and Liquid Funds by 0.15% each. 

Equity Diversified Funds
 
Large Cap Funds: Among the schemes in the large cap funds, JM Equity Fund gained the maximum of 4.80%, followed by Morgan Stanley Growth Fund which climbed by 4.64%, BNP Paribas Equity Fund and L&T Hedged Equity Fund jumped 4.55% each among others. Escorts Growth Plan and Reliance NRI Equity Fund ended at the bottom this category gaining by 1.87% and 2.66% respectively. 

Mid Cap Funds: HSBC Midcap Equity Fund was the top performer, which gained by 5.15%, followed by Sundaram Equity Multiplier which climbed 4.43% and JM Mid Cap fund rose 4.40% among others. Axis Midcap Fund and ICICI Pru Emerging S.T.A.R Fund ended at the bottom of this category gaining by 0.30% and 1.08% respectively. 

Multi Cap Funds: Bharti AXA Equity Fund was the top performer, which gained 5.03%, followed by Bharti AXA Equity Fund - Eco which climbed 5% and Axis Equity Fund rose 4.75% among others. Edelweiss Absolute Return Fund and Birla Sun Life India Opportunities Fund – B were the schemes to deliver lower returns in this category gaining by just 0.09% and 1.78% respectively. 
 
Tax Savings Funds
 
Bharti AXA Tax Advantage Fund - Eco and Bharti AXA Tax Advantage Fund were the top performers with a return of 4.98% and 4.96% respectively during one week period. Among the other schemes in the category, L&T Tax Saver Fund rose 4.80%, Axis Tax Saver Fund climbed 4.49% and Baroda Pioneer ELSS ‘96 surged 4.33%. Escorts Tax Plan and ICICI Pru Tax Plan were the schemes to deliver lower returns in this category gaining by just 1.67% and 1.98% respectively. 

Index Funds
 
The NAV of Index Fund category advanced by 4.22% over one week period with Principal Index Fund being the top gainer with a return of 4.42%. It was followed by Tata Index Fund - Sensex Plan and LICMF Index Fund - Nifty Plan with 4.41% each. HDFC Index Fund-Sensex Plus Plan and ICICI Pru Nifty Junior Index Fund ended at the bottom of this category posting weekly returns of 3.11% and 3.64% respectively. 

Sector Funds
 
Banking Funds category gained 5.06%, with JM Financial Services Sector Fund gaining 5.75% and Sundaram Financial Services Opportunities gaining by 5.24% among others. Sahara Banking & Financial Services Fund ended at the bottom of this category with a return of 4.59%. 

FMCG Funds category gained 4.08% over one week period ended 4 March 2011. SBI Magnum SFU - FMCG Fund and ICICI Pru FMCG Fund were the top gainer in this category. Their NAV appreciated by 5.03% and 3.74% respectively over one week period. 

NAV of Pharma Funds category advanced 1.63%, with UTI-Pharma & Healthcare Fund ending the week as the biggest gainer with an increase in NAV by 2.01%; it was followed by Reliance Pharma Fund which gained 1.74%. 

Infotech Funds category gained 1.60% over one week period ended 4 March 2011. SBI Magnum SFU – Infotech Fund was the top gainer with a return of 1.95%. 

Hybrid Funds
 
UTI-CCP Advantage Fund and ING Balanced Fund were the highest gainer in equity oriented balanced fund category with their NAV appreciating by 3.51% and 3.29% respectively. Principal SMART Equity Fund, ICICI Pru Equity & Derivative – Wealth Optimizer and ICICI Pru Child Care Plan-Gift Plan were the worst performer in this category gaining by 1.46%, 1.51% and 1.63% respectively. 

LICMF Children's Fund was the highest gainer in debt oriented balanced fund category as its NAV appreciated by 2.42%. Tata Young Citizens Fund was the next highest gainer by 1.84%. Escorts Income Bond and DWS Money Plus Advantage Fund were the worst performers in this category gaining by 0.11% each.