Pharma funds in good health, post highest average returns

These funds granted an average return of 6.38%, up from 2.69 per cent.

Pharmaceutical sector funds gave the highest return among all categories of mutual funds for the week ended Friday. These funds gave an average return of 6.38 per cent, up from 2.69 per cent a week ago.

Gilt funds posted better returns in the backdrop of the US Federal Reserve holding its interest rates steady on Tuesday.

Sector funds: Pharmaceutical sector funds delivered better average return of 6.38 per cent beating the BSE Healthcare Index, which ended 3 per cent up.

Five schemes contributed to the overall performance of this sector. Reliance Pharma Fund gave a whopping weekly return of 8.79 per cent, followed by SBI's Magnum Pharma Fund with 7.60 per cent.

UTI Pharma and UTI Healthcare delivered 6.52 per cent return each, JM Healthcare Sector gave 4.95 per cent and Franklin Pharma Fund posted 4.06 per cent.

Banking funds were also in the limelight, giving average weekly return of 5.29 per cent. However, the banking funds category under-performed CNX Bankex, which posted the highest return of 6 per cent.

With the US Federal Reserve's decision to pause its interest rate hiking campaign on Tuesday, domestic bank shares performed better.

Reliance Banking Fund gave a 5.34 per cent return last week, while UTI Mutual's UTI Banking Sector scheme posted 5.25 per cent.

Technology funds, with an average weekly return of 3.78 per cent, outperformed the benchmark stock indices, up 3 per cent each.

Consumer goods category posted 3.64 per cent weekly return.

Automobile sector funds registered the least average weekly return of 3.34 per cent in the sectoral categories, against 3.78 per cent return on August 4, wherein it had topped the returns chart.

Equity, index funds: The week ended Friday saw equity-linked saving schemes and diversified equity scheme fetching average returns of 5.01 per cent and 4.51 per cent, respectively.

Prudential ICICI Tax Plan (8.09 per cent return), Principal Personal Tax Saver (7.51 per cent return) and ING Vysya Tax Savings (7.17 per cent return) were the top-three ELSS funds.

Among diversified equity schemes, Taurus Starshare posted highest return of 9.54 per cent, followed by Taurus Discovery Stock, Prudential ICICI Emerging Star, Magnum Emerging Businesses and Principal Junior Cap Fund with returns above 7 per cent each.

However, the funds that did not perform well were Franklin Templeton Mutual's Templeton Equity Income Fund (2.83 per cent return) and FT India Life Stage FoF 20s Plan (2.46 per cent return), UTI Mutual's UTI Large Cap (2.76 per cent return) and UTI PSU Fund (2.71 per cent return). JM Emerging Leaders Plan posted the lowest return of 2.07 per cent.

Index funds registered the lowest return in the equity category. It gave 3.16 per cent weekly average return, compared with Sensex and Nifty, up 3 per cent each.

Debt funds: In the debt category, medium and long-term gilt funds posted highest average return of 0.38 per cent last week.

This was followed by medium-term debt funds(0.20 per cent return), short-term debt (0.15 per cent return), short term gilt (0.14 per cent return), short-term floaters(0.13 per cent return), and liquid funds and long-term floaters (0.12 per cent return each).

The benchmark 10-year government bond fell to 8.1125 per cent, compared with 8.2821 per cent on August 4.

DBS Chola Gilt Investment gave 1.10 per cent return last week, followed by Grindlays GSF PF Regular and Institutional Plan (0.99 per cent return each) and Reliance Gilt Long-term Plan (0.99 per cent return).