The BSE sensex, by Tuesday, had gained 406 points since budget with the FIIs and others turning bullish initially in select sectors such as infotech, pharma and FMCG and later in banking sector stocks. Consequently, those funds with higher exposure to these sectors have registered a higher jump in NAVs.

With the blind run in the infotech counters, Kothari Pioneer's Infotech Fund has shown the maximum increase with the NAV moving up by 22 per cent to Rs 21.13 from Rs 17.36 prior to the budget.

Birla Advantage Growth Fund, whose 85 per cent of the corpus is invested in pharma, software and FMCG sectors, has registered a 18 per cent jump. Kothari Pioneer's Blue Chip, PrimaPlus, Prima Fund with similar sector-wise allocation have registered a 13 to 16 per cent growth. DSP Merrill Lynch's equity scheme and Kotak Mahindra's K-30 scheme have shown a 17 per cent increase in their respective NAVs. Even the languishing growth fund of Templeton has managed an improvement of around four per cent.

Apart from the increase in NAV, it is the change in perception about mutual funds as a vehicle for investment after incentives in the budget that has given a fillip to this industry. Almost all mutual funds have said that enquiries during the week have shown a quantum jump. ITC Threadneedle's Chennai office alone is said to have collected Rs 40 lakh in the last three days.

The finance minister in the recent budget had announced that all income from UTI and other mutual funds would be exempt from income tax in the hands of the investors. He also exempted all equity oriented open ended funds with more than 50 per cent investment in equity from dividend tax.