Long-term gilts, index funds, top returns chart

Last week's bounce in the stock market helped index funds deliver the highest returns across all categories of funds at 3.99 per cent.

They also marginally beat the Bombay Stock Exchange's Sensex that rose 3.84 per cent, while, being underperformed by the National Stock Exchange's Nifty level that grew 4.24 per cent over the week.

Barring banking and pharmaceutical sector funds, all others managed to beat their benchmark indices. In the equity category, fast-moving consumer goods gave the least returns.

Funds across all categories delivered positive returns.

With the 10-year benchmark yield falling last week, long-term gilt funds topped the debt category returns list by posting 0.19% average weekly return.

Friday, the 8.07 per cent 2017 bond ended at 8.0633 per cent compared with its close a week ago at 8.0971 per cent on Apr 13. Yields softened last week with liquidity staying comfortable as banks bought bonds for maintaining their SLR (statutory liquidity ratio) requirement.

The headline inflation for week to April 7 was at 6.09 per cent, sharply up from 5.74 per cent a week ago. But Chidambaram's comments that inflation could slow down to 5.70 per cent next week brought relief to gilt prices. With the last quarter (Jan-Mar 2007) earnings results coming in-line with market expectations, Sensex and Nifty level rose for the week ending Friday.

Among index funds, HDFC Index Nifty posted maximum returns of 4.41 per cent. This was followed by Benchmark Mutual's Banking BeES and ICICI Prudential Index Fund registering 4.36 per cent and 4.29 per cent returns respectively.

Of 22 index schemes, 15 gave higher returns than Sensex, while seven bettered Nifty's performance.

Diversified equity schemes gave 2.89 per cent average weekly return.

UTI Index Select Equity Fund, Magnum COMMA Fund and ICICI Prudential Discovery Fund topped in the diversified category with 5.27 per cent, 5.20 per cent and 5.01 per cent returns.

Lotus India Mutual's Contra Fund gave the lowest return of 0.79 per cent.

Equity-linked savings scheme recorded 2.80 per cent average returns.

The top-performing scheme under the category was ICICI Prudential tax Plan, posting a spectacular 4.58 per cent returns.

Reliance Tax Saver (1.68 per cent returns), Birla Equity Plan (1.51 per cent) and HDFC Long Term Advantage (1.30 per cent) were the worst performers among the tax planners. Pharmaceutical funds recorded the highest returns among the sector-specific schemes.

They managed to beat the BSE Healthcare Index by posting 3.54 per cent average return, compared with the hike in its index level by 2.17 per cent over a week.

Reliance Pharma Fund posted 5.66 per cent highest return, whereas, Franklin Pharma Fund registered the lowest 2.58 per cent returns.

The banking sector posting 3.53 per cent returns under-performed the CNX Bank index that surged 4.39 per cent. Among banking funds, UTI Banking Sector Fund as well as the Reliance Banking Fund fared poorly, posting 3.69 per cent returns.

Technology funds that outshone the returns chart the week ending April 13, did not top the returns chart last week. Posting an average 1.45% return, technology funds performed well compared to their benchmark indices. They beat the BSE IT that rose 0.63% as well as CNX IT that fell 0.33 per cent.

Within the seven technology funds, DSPML Technology.com Fund posted highest return of 3.28 per cent.

Magnum IT, UTI Software Fund and Franklin Infotech Fund which posted 0.74 per cent, 0.29 per cent and 0.12 per cent returns were the worst-hit schemes.