The Hindu Business Line : 'Equity schemes outperform'

CRISIL Fund Services' rating of mutual fund schemes for November 2004 says that equity schemes have outperformed and debt schemes have given positive returns after a hiatus.

Investor sentiment remained buoyant throughout the month on the back of good economic fundamentals and a correction in the global crude oil prices, according to Mr Krishnan Sitaraman, Head, Financial Sector Ratings.

Diversified equity schemes have sparked off tremendous interest among both foreign and retail investors in the last quarter on the back of their impressive returns during the period. Schemes that have invested large proportions in the mid-cap segment have reaped rich rewards, observed the report.

The Crisil Fund-eX, a benchmark for equity schemes, generated monthly returns of 9.27 per cent in November, said a company press release.

As yields fell towards the latter half of the month, bond prices rose and the category ended the month on a positive note, said the release. Crisil Fund- dX, the benchmark for long term income funds, generated annualised monthly returns of 1.42 per cent in November 2004.

The balanced fund category has also performed well over the last couple of months, according to the release. The ongoing momentum in the equity segment has helped these funds. The Crisil benchmark for Balanced Funds generated monthly returns of 5.51 per cent in November 2004.

Monthly income plans entered the positive territory this month.