The Hindu Business Line : Banking sector funds among best performers in July

Banking stocks rose when the UPA Government won the trust vote without the support of the Left parties, which pushed up expectations of reforms in the financial sector.

Kotak PSU Bank ETF gave a return of 22.13 per cent, PSU Bank BeES a return of 21.99 per cent, Reliance Banking ETF 14.70 per cent, Banking BeES 14.51 per cent, Reliance Banking 13.03 per cent, and UTI Banking Sector fund 11.49 per cent, according to the data collated by Value Research.

These funds have given negative returns in the range of 20-37 per cent over the past six months, according to Value Research.

The banking funds were heavily battered through June and early July due to the high uncertainty before the trust vote in Parliament.

This also led to huge selling in banking stocks during this period, said the Chief Investment Officer of a mutual fund house.

But with the Government winning the majority vote, sentiment turned positive for the sector, he added.

While banking funds, which were performing badly in June, turned out to be the top performers in July, the tables have turned for global funds which were amongst the worst performers during the month, against their top performer status in the previous month.

These funds underperformed the Sensex, which was up 6.6 per cent in July.

AIG World Gold Fund and DSPML World Gold Fund saw their NAVs drop by more than 12 per cent over the last month.

Negative returns

Principal Global Opportunities gave negative returns of 6.05 per cent.

Sundaram BNP Paribas Global Advantage’s NAV fell by 5.77 per cent.

Deutsche Asset Management’s DWS Global Thematic Offshore Fund gave negative returns of 5.06 per cent, Birla Sun Life International Plan a negative return of 3.26 per cent and HSBC Emerging Markets a negative return of 2.41 per cent in July, according to Value Research data.

India is amongst the best performing markets in July.

In fact, not many international markets have given good returns, said Mr N. Prasad, Deputy CEO, Sundaram BNP Paribas Mutual.

Technology funds also feature amongst the worst performing mutual fund schemes, according to analysts.

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