Market uncertainties impact MF returns negatively: Crisil

According to the Crisil report, in the general equity category, the average return for 34 mutual fund growth scheme, which was 19.10 per cent for the year up to April 2002, declined to 8.14 per cent for the year up to May.

The point-to-point period return for the same period declined to 2.37 per cent from 11.74 per cent. The Sensex point-to-point return for the same period was negative at 12.14 per cent, while the broader indices like CNX MIDCAP 200 have given a positive point-to-point return of 8.09 per cent.

The Pioneer ITI Prima Fund continued to be at the top spot, with the Pioneer ITI Prima Plus at the second spot, while Zurich India Equity Fund moved up by one place to the third rank.

In the gilt funds schemes, the average return for the sample of 17 gilt funds for the year till May 2002 was 16.59 per cent, which if seen in isolation are attractive, stated the Crisil release. The K-Gilt Saving growth, which was at the second rank in April 2002, has displaced DSP Merill Lynch Govt Sec Fund to occupy the top position. Alliance Govt Sec Long-Term Plan has moved to the third place.

The Debt schemes have showed lesser variability, as income funds have performed consistently although there has been a decline in returns. While the average returns for the 25 debt funds for the year up to April 2002 was 17.67 per cent, these declined to 15.13 per cent up to May 2002.