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Mayhem wipes off MF wealth too

Before last week's bloodbath on Dalal Street, Sensex was quoting at nearly 95 per cent above the year-ago levels.

india Updated: May 21, 2006 10:15 IST

While Finance Minister P Chidambaram looks to mutual funds to salvage the sinking market, it turns out that last week's market mayhem did not spare even MF investors.

The average returns across all equity and hybrid fund categories turned negative, both on weekly and monthly basis, according to an analysis of one-week and one-month returns for the period ended May 19.

Equity funds were overtaken by the debt and gilt funds in terms of higher weekly and one-month returns after the share markets witnessed a record high one-day fall of 826 points on Thursday followed by another 453-point free fall on Friday.

The fall in the mutual fund returns comes after a strong performance in the recent past, especially from the equity- linked schemes, tracking the sharp record-breaking northward rally in the stock market.

Before the last week's bloodbath on Dalal Street the benchmark Sensex was quoting at nearly 95 per cent above the year-ago levels, while a host of equity-linked MFs were giving one-year return of more than 100 per cent.

While the equity funds are still maintaining a big lead over the debt and gilt funds in terms of one-year returns, the current average one-year returns across the various categories have fallen back sharply from their higher levels a week ago.

First Published: May 21, 2006 10:15 IST