The correction in equity markets, which started six months ago, has wiped out all the gains equity funds made in the past year. Tax plans, as a category, witnessed steeper losses, with four of the top performing funds losing more than the best performing equity diversified funds. Only Taurus Libra Taxshield has given positive one year returns.
Barring Reliance Diversified Power, none of the infrastructure funds has performed well. Gold ETF, as a category, on an average, earned more than 50% in the past year. Performance has been uniform across different schemes. It is a good investment option in the rising prices environment.
While the uncertainty surrounding interest rates has taken its toll on debtoriented balanced funds, they were relatively more resilient in containing the losses to less than half of what equity-oriented funds lost. Though Benchmark Split Capital and Sundaram BNP Value Plus have the lowest corpus, they have topped their respective charts in the one year time-frame.
Fund of Funds has not yet picked up in India. ICICI Pru Advisor has minuscule assets compared with FT India Life Stage, but has given higher returns in the past year. Liquid funds offer a reliable option for investors who are looking for short-term investment with minimal risk of capital loss.