Gilt Funds

In the first week of September, there is little joy for investment funds in India . When you compare mutual funds in India, mutual funds bank started from where they left off last month. In the first week, they again outperformed their other mutual funds in India . They were so dominant in the Top 10 for the week ending on September 08 which features only non-bank equity funds in the list. But between the bank funds, ETFs have occupied the top three places, with Kotak PSU Bank ETF yield returns above 9 percent. The ETF was followed by Kotak Bank and Reliance Banking Exchange BEES Traded.Fund, each giving back more than 6 percent. The only non-bank funds in the list was India Advantage (Offshore) Fund.

Meanwhile, banking stocks seem to have some steam left oil prices fell to five months minimum of $ 104 plus the pressure off the inflationary trends. Thus, the new governor of the Reserve Bank may get a little more time to lose interest rate increases, if any. Higher interest rates has affected the manufacturing sector the most. And even banks that have seen a drawdown decreases. Let's keep our fingers crossed that the rate hikes are not too early. banking stocks are quoting attractive valuations, "said ICICI Securities, adding that the bank could surpass all markets. And there could be another positive trigger behind the corner: the ongoing reforms in the insurance and banking. And after the green light from the Nuclear Suppliers Group, the government seems to have little time to think in terms of the next reform.

Consistent with the trend in all markets, index funds also had a good run, returning an average of more than 3 percent. Birla Sun Life Index Fund (G) topped the list with 3.28 percent return. Magnum Index Fund (G) and ICICI Pru Index Fund-Nifty Plan took the following positions. The new boss of the Reserve Bank of India in his first comments after taking the bar provided some joy for bank funds. He seems less aggressive on inflation, when he said that the current phase of inflation can be a short-term phenomenon. However, he said it is too early to take a call whether inflation has peaked. In other positive developments, he said he would not be considering opening the banking sector again. He also said there would be no change in the politics of India's exchange rate, convertibility of capital account remains high on the maps of the central bank.

Despite a good series of bank funds during the last two months, you should not be over-invested in a particular sector. The external environment can change at any time. For example, the good news on oil can not last long if the OPEC production cut if crude fall sharply. If you have other mutual funds in addition to bank funds, see the weightage of the exposure of other donors for funds from the bank and recalculate the exposure to this sector. Keep the balance of your portfolio at least once a year and strictly follow your ratio of debt to equity ratio. In the pack of debt funds, gilt funds come on top again, reflecting the trend of the previous month. Lotus India Gilt - Long Term ... topped the league with yields of more than 2.5 per cent, followed by DSP ML G Sec Fund - A (G) 2.1 per cent and Sahara Gilt Fund (G) at 1.3 percent.