The Mutual Fund (MF) industry offering equity linked banking schemes have given the highest return over the one year horizon ending on December 31, 2007.
Among the other good performing schemes, equity linked diversified, tax planning and index funds have given a better return in the current calendar year.
According to Value Research, the banking schemes have given a return of 70% during 2007. The top performing banking funds are Reliance Banking and UTI Banking sector funds.
The second highest performing fund was equity linked speciality fund, which has given a return of 60% over the year. The top top performing funds include JM financial Services Sector and Reliance Diversified Power Sector.
The equity linked diversified fund have given a return of 59% and tax planning funds have provided a return of 58% over one year period.
The index funds have performed better than the benchmark index. The index funds have given a return of 50% as against 47% by the BSE Sensex.
According to market players the index and sectoral funds performed well because overall good performance of the equity market.
Commenting on the overall domestic market performance, Sukumar Rajah, CIO – Equity, Franklin Templeton Investments, India said, ?2007 was another strong year for the Indian equity markets as continued economic and earnings momentum, attracted both foreign and domestic investors.? While interest-rate sensitive and export-oriented sectors witnessed a slowdown, the year saw the clear emergence of domestic drivers – consumption and investment, he said.
The equity oriented hybrid funds have also given a return of 43%. The performance of FMCG fund also good. They have a moderate return of 28%.
Taking a cue from Franklin Templeton, Dun & Bradstreet said, ?The march of the BSE Sensex, which has risen almost 47% since the start of the year to December, led in a large way by net FII inflows, which stood at approximately Rs 31,300 crore during the year 2007.?