Index funds displaced sectoral funds from the top of the perch last week. The index funds returned 3.16 per cent for the week, while the best performing actively managed category were petroleum funds with 2.61 per cent. |
Pharma funds which were at the bottom of the table among equity fund categories last week, found themselves at the same place, though their returns had declined even further to 0.55 per cent. |
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In the debt category, monthly income plans (MIPs) continued to top the return stakes with 0.55 per cent. Long term gilt funds surged last week coming second behind MIPs with 0.15 per cent returns. |
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Index funds managed to leap to the top from third last week. The index funds have been helped by the big gains in the benchmark indices, Sensex and Nifty, both of which are ruling near all-time high levels. |
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The Sensex gained more than 300 points during four trading sessions, before retreating today below the 8,500 levels. "An index fund is designed to do no better or worse than the benchmark it tracks. What's ironic about index funds, however, is that investors who settle for average market performance will usually end up richer than the investors who stick with actively managed funds which aim for abnormally high returns," says Sanjiv Shah, executive director and chief investment officer of Benchmark Mutual Fund. |
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The Sensex and Nifty returns for the week were 3.74 per cent and 3.11 per cent respectively. The next best performers in the equity category last week were petroleum and tax planning sector funds whose weekly returns amounted to 2.61 per cent and 2.42 per cent respectively. |
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As far as performance for the past 12-month period was concerned, FMCG funds continued to top, with 90.49 per cent. Banking sector funds came in next with 84.65 per cent. |
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The largest equity category, diversified funds (67.10 per cent) were fifth, behind tax planning funds (79.72 per cent) and auto sector funds (67.69 per cent). Petroleum funds were again the laggards, coming in last with 24.87 per cent returns for the past year. |
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Debt funds struggled last week, with only monthly income plans (MIPs) able to clock double-digit returns for the past year. MIPs returned 11.71 per cent for the past 12 months, while the best performing pure debt category was short term funds which managed 5.64 per cent. |
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Long term gilt funds which were the second best performers on a weekly basis came in last as far as yearly performances were concerned. |
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The average category returns amounted to 3.65 per cent. Income funds, which was the worst performer last week moved up a place posting returns of 3.78 per cent for the year. |
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