Equity schemes witness correction, debt schemes consistent performers in October: CRISIL~RRR

CRISIL FundServices, in its monthly 'risk adjusted return ranking' (CRISIL~RRR) of the performance of mutual fund schemes, has covered 10 types of mutual fund investment options and has ranked 214 schemes for the one-year ended October 2005. The ranking covers 64 per cent of the industry assets under management (AUM). The CRISIL~RRR measures performance of the schemes not only on the returns given by the schemes over the period of analysis but also the risk they took to get those returns.

Equity markets witnessed correction during October 2005 amidst a depreciating rupee. FIIs were net sellers during the month. The market returns as measured by the Sensex delivered negative returns of 8.60 per cent during October 2005. During the same period, the CNX Midcap Index also gave negative returns of 8.63 per cent. The month also witnessed the much expected 25 bps hike in repo and reverse repo rates by RBI. The credit policy announcement signals the increasing fear of inflationary pressures on the economy.

The equity funds category benchmark, the CRISIL Fund~eX, generated a return of 46.65 per cent for the year-ended October 2005.

In the software sector category,

The income funds benchmark, the CRISIL Fund~dX, generated returns of 5.80 per cent for the year-ended October 2005.