 "Gold funds back in the league of top performers")
At a time when stock markets are showing signs of weakeness post Bernanke's announcement of tapering liquidity, mutual funds having gold as their underlying asset class are on fire. Gold prices have surged from a level of around Rs 26,000 for 10 grams to currently above Rs 33,000 in India's bullion market on the back of steep depreciation in Indian currency against US dollar.
On an average, gold funds have returned investors 17.41% over the last three months. This essentially means if an investor had put in Rs 100 at the beginning of June this year, his investment value stands at Rs 117.41.
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This is surprising to many of the market participants who had gone bearish on gold, not long ago, when the yellow precious metal started cracking sharply.
The only category which could surpass gold funds over the last three months is information technology (IT). The IT equity funds, according to the data available from Value Research Online, have given a massive return of 24.06%. Yet again, rupee factor has come to the rescue of IT stocks in a major way.
For example, shares of Tata Consultancy Services (TCS) hit their all time high last week on Friday when it crossed level of Rs 2,000. Its peer Infosys is already spreading cheers among fund managers as its counter is hovering at around Rs 3,000 - a sharp rise of over 35% in recent months.
The only other category whose returns stand in double digits is international equity funds with a little less than 12%.
Barring these three fund categories, no other funds have even managed to give return of more than 2.2%.