Equity funds drop while debt funds gain in volatile market

Equity Mutual Funds continue to end with negative returns amidst volatile market. The steady stream of weak macro-economic data is keeping fund managers on the back foot. Funds belonging to broader market based like Large cap and Index categories were hit the most while Small & Mid Cap funds delivered relatively better performance than its counterpart.

In the sector space, defensive sector funds in Pharma & Healthcare and FMCG did well in the uncertain market condition by registering no decline. Meanwhile Banking & Finance and Technology were among the worse performer in the equity space.

The equity funds will hover in red zone for little longer as markets will continue to remain volatile in near term. A 50-month low reading of HSBC Manufacturing Purchasing Managers’ index for May also indicated that the recovery in the economy is still some way off. The market session closed with Sensex at 19545.78, down 65 points and Nifty slipped 20 points to close at 5919.45.

The expectation of rate cut and the latest announcement of OMO (open market operation) by RBI are acting as a positive trigger for the debt funds. The debt funds across categories recovered quite well registering no decline.

Check out all mutual fund gainers & losers

Here is the day’s performance and the gainers and losers across categories.

Equity funds: Top gainers

*  IDFC Infrastructure Fund (G) up 1.37%

*  Goldman Sachs Infrastructure Exchange Traded Scheme up 0.86%

*  ING Midcap Fund (G) up 0.55%

Equity funds: Top losers

*  Canara Robeco Emerging Equities (G) down 1.25%

*  Canara Robeco Infrastructure (G) down 0.84%

*  Sahara Star Value Fund (G) down 0.61%

Tax saving funds: Top gainers

*  BNP Paribas Tax Advantage Plan (ELSS) (G) up 0.33%

*  Reliance Equity Linked Saving Fund - Series I (G) up 0.26%

*  SBI TAX Advantage Fund - Series II (G) up 0.24%

Tax saving funds: Top losers

*  JM Tax Gain Fund (G) down 0.63%

*  Religare Invesco AGILE Tax Fund (G) down 0.48%

*  BOI AXA Tax Advantage Fund - Retail Plan (G) down 0.48%

Sector funds: Top gainers

*  Reliance Pharma Fund (G) up 1.51%

*  UTI Pharma & Healthcare Fund (G) up 1.50%

*  SBI Pharma Fund (G) up 1.32%

Sector funds: Top losers

*  R* Shares Banking Exchange Traded Fund down 1.00%

*  UTI Banking Sector Fund (G) down 0.91%

*  Sundaram Financial Services Opportunities - Retail Plan (G) down 0.89%

Balanced funds: Top gainers

*  Escorts Balanced Fund (G) up 0.52%

*  Tata Balanced Fund (G) up 0.06%

*  HDFC Prudence Fund (G) up 0.04%

Balanced funds: Top losers

*  JM Balanced Fund (G) down 0.46%

*  Canara Robeco Balance (G) down 0.46%

*  Principal Retail Equity Saving Fund (G) down 0.25%

Debt funds: Top gainers

*  JM Income Fund (G) up 0.56%

*  ING Gilt Fund - PF Dynamic Plan (G) up 0.60%

Debt funds: Top losers

*  No losers