The Global Funds category, one of the out performers in the last month, declined relatively less as compared to the equity diversified category. The category average declined by 8.37 per cent with Birla Sun Life International Equity Fund, Franklin Asian Equity Fund, and Principal Global Opportunities Fund managing to restrict their losses below 7 per cent. ABN AMRO China – India Fund declined the most posting negative returns of 12.89 per cent. The fund’s underperformance resulted from the massive losses from the Chinese Market which declined severely compared to its Asian Peers.

The Gold Exchange Traded Funds (ETFs), which dazzled for the most part of the fourth quarter ending March 2008, gave up some of their gains. The average Gold ETF’s returns declined by 3.2 per cent with Quantum Gold Fund loosing lesser money compared to other ETFs in the category. Bank BeES was the worst performer, whose decline was more than double than that of the BSE Sensex.

Among the Thematic Equity Funds category, FMCG and Pharma sectoral funds lost lesser money while Banking and Infrastructure sectoral funds were the worst performers. The FMCG sectoral funds average returns slipped by 3.86 per cent with Franklin FMCG Fund being the best performer. Pharma sectoral funds on an average declined by 5.32 per cent with JM Healthcare Sector Fund topping the category. The Banking Sector funds were the worst performers with the BSE Bankex tumbling the most. The overall banking category of funds posted negative returns of 19.65 per cent, relatively outperforming the broader benchmark of BSE Bankex which posted negative returns of 23.69 per cent.

The tax planning category was the second worst performing category. The overall category average returns declined by 13.04 per cent with only one scheme out of 40 schemes declining less than S&P Nifty. Sundaram BNP Paribas Tax Saver 98 (-8.24%) followed by Franklin India Index Tax Fund (-9.40%) and Escorts Tax Plan Fund (-9.496%) were the best performers among the category. ABN AMRO Tax Advantage Plan (-17.72%), JM Equity Tax Saver Fund – Series I (-16.98%) and Birla Tax Plan 98 (-16.75%) were among the worst performers in the category.

Rising Inflation rate led to a steep rise in bond yields in the month of March. As a result, the overall Income fund category delivered average annualized returns of 4.20 per cent, while the Short Term Debt category delivered average annualized returns of 6.30 per cent during the last month.

The floating rate funds did better in March with the average annualized return standing at 8.02 per cent in the month of March compared to 7.72 per cent in the previous month. However the average performer could not beat the benchmark Crisil Liquid Fund Index, which posted an annualised return of 8.55 per cent during the same period. Only five schemes of a total 28 managed to outperform the benchmark Crisil Liquid Fund Index in March. LIC MF Floating Rate Fund – ST topped the category, up from the second position last month, delivering 9.66 per cent annualised returns. It was followed by Birla Floating Rate Fund – STP (8.98%) and Birla Floating Rate Fund – LTP (8.81%). Grindlays FRF – STP – Plan A was the worst performer in the category with 6.03 per cent annualised returns, followed by Escorts Floating Rate Funds with 6.95 per cent returns.

The rising yields had an impact on the performance of the funds in the income category for the second consecutive month. The effect was more this month as the category annualised average returns appreciating to 4.20 per cent, lower than the 5.57 per cent reported in the previous month. LIC Bond Fund, which was an underperformer in February, appreciated by an annualised rate of 21.51 per cent in the month of March. It was followed by ICICI Prudential Interval Fund II – Quarterly Interval – Plan E with 17.05 per cent annualised returns, and Kotak Wealth Builder Series I – Growth with 12.88 per cent annualised returns. February month’s laggards continued with their underperformance posting negative returns in the month of March. Few among these worst performers were Templeton India Income Fund, DBS Chola Triple Ace – Regular, and Templeton India IBA Fund.

Unlike February, the Short Term Debt category underperformed its benchmark Crisil Short – Term Bond Fund Index. The category delivered average annualized returns of 7.43 per cent just below the benchmark’s returns of 7.93 per cent. Principal Income Fund – STP topped the category with 9.72 per cent returns, followed by ABN AMRO Flexible Short Term Plan – Series A and SBI SHF – Short Term – Retail.  SBI Magnum NRI Investment Fund – Short Term Bond Plan continued to be the worst performer for the third month consecutively with no signs of recovery. The scheme delivered returns at an annualised rate of 0.82 per cent during March. UTI Short Term Income Fund – Retail (2.88%) and Templeton India STIP (3.95%) were among the laggards in the month.

Equities continued to take the sheen off the MIPs and in March there was no recourse sought in the depressed Debt markets either. The category lost 19.3 per cent (annualised), lower than its benchmark Crisil MIP Blended Index which declined by 16.15 per cent (annualised). Although the less aggressive of the lot managed to contain losses, 4 schemes delivered positive returns with Birla MIP – Savings 5 leading the category. DBS Chola Monthly Income Plan and ING MIP – Plan A were the other top performers. ICICI Prudential Income Multiplier Fund declined the most, followed by Birla MIP Wealth 25and Reliance MIP.