Low buying, market slide erode equity funds NAVs

Our Markets Bureau

Mumbai, July 15: Equity funds saw erosion in their net asset values (NAVs) during June as the equity markets witnessed another bout
of downfall with both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) indices sliding over 7.5 per cent.

The slip was due to uncertainties over the shift to the rolling settlement mode from July 2 which reduced the buying interest.
According to mutualfundsindia.com monthly performance report, none of the equity-based funds posted positive returns for the month.
However, out of the 114 open-ended schemes (including sub plans) considered, as many as 55 schemes posted better returns than the benchmark indices, CNX Nifty and BSE Sensex.

Technology funds posted an average negative return of 12.25 per cent.

The top performer in the category gave a negative return of 5.28 per cent. Among sectoral funds, the uppermost was Prudential ICICI FMCG fund that posted a negative return of 1.02 per cent.

None of the ELSS (equity-linked savings scheme) posted positive returns. Dundee Taxsaver Fund, the best-performing fund during the month, posted a negative return of 2.79 per cent.

The performance of balanced funds were better with two schemes registering positive returns. The top performer was KP Optima Fund, which gave a return of 1.06 per cent, followed by JM Balanced Fund. The average return in the balanced fund category was, however, a negative 4.55 per cent.