Last Updated : Jul 01, 2020 03:37 PM IST | Source: Moneycontrol.com

Mutual funds update: All equity, debt schemes deliver positive returns in June

Mutual fund managers expect FY22 to be a more normalised year for economic growth.


All equity and debt scheme categories gave positive returns in the month of June. Within the equity category, schemes investing in bank stocks led the returns chart across all the categories of funds last month.


Banking funds delivered 12.06 percent returns, outperforming the benchmark S&P BSE Bankex that gained 10.98 percent during the review period, according to a mutual fund research firm, Value Research.


Fund managers attributed the rise in banking stocks to hopes of a revival in the economy.


“Opening up of the economy despite the pandemic is likely to help bank shares as banks are the mirror to a country’s economy,” said a fund manager from a private fund house.


The second best-performing category was small-cap funds with 11.15 percent average returns. In comparison, the S&P BSE Small Cap Index rose 14 percent in June.


Midcap funds gave 8.81 percent average returns in June as against 10.21 percent gains in S&P BSE Midcap Index.


Mutual fund managers expect FY22 to be a more normalised year for economic growth which will benefit mid and small companies benefit the most. Last month, S&P BSE went up 8.44 percent.


On the debt front, corporate bond schemes category gave the highest average return of 1.58 percent followed by medium duration debt funds with 1.42 percent average returns.


Avnish Jain, head-fixed Income, Canara Robeco Mutual Fund said, “Defaults in the past have led investors to look for quality debt papers, and this has led to better funding for well -established companies in the financial space helping returns.”

Other debt schemes gave returns in the range of 0.23-1.36 percent in June.

First Published on Jul 1, 2020 03:37 pm
Sections