NEW DELHI (Reuters) – Indian equity funds focusing on consumer goods and healthcare companies topped the performance charts in April, and the country’s struggling economy is set to drive more investors to the defensive sectors.

Growth in Asia’s third largest economy has been slowing, fiscal and trade deficits have widened sharply and the inability of the government to push key reforms such as cutting subsidies and opening up the economy have dented investor confidence.

Still, in the country of more than 1.3 billion people demand is seen strong for daily use consumer goods like soaps, toiletries and food as well as pharmaceutical products.

“Consumption is on track and these sectors will continue to do very well,” said T P Raman, managing director of Sundaram Mutual Fund. “All other sectors are impacted by one thing or the other.”

Fast moving consumer goods (FMCG) funds gave an average return of 8 percent in April, shining for a second consecutive month, while healthcare funds chipped in 3.6 percent, data from fund tracker Lipper, a Thomson Reuters company, showed.

The SBI Magnum Sector Funds Umbrella-FMCG fund was the best performer, posting a 9 percent return in April.

The returns were better than the BSE FMCG index’s 6.2 percent gain and the healthcare index’s 2.6 percent rise in April.

NEW DELHI, May 2 (Reuters) – Indian equity funds focusing on consumer goods and healthcare companies topped the performance charts in April, and the country’s struggling economy is set to drive more investors to the defensive sectors.

Growth in Asia’s third largest economy has been slowing, fiscal and trade deficits have widened sharply and the inability of the government to push key reforms such as cutting subsidies and opening up the economy have dented investor confidence.

Still, in the country of more than 1.3 billion people demand is seen strong for daily use consumer goods like soaps, toiletries and food as well as pharmaceutical products.

“Consumption is on track and these sectors will continue to do very well,” said T P Raman, managing director of Sundaram Mutual Fund. “All other sectors are impacted by one thing or the other.”

Fast moving consumer goods (FMCG) funds gave an average return of 8 percent in April, shining for a second consecutive month, while healthcare funds chipped in 3.6 percent, data from fund tracker Lipper, a Thomson Reuters company, showed.

The SBI Magnum Sector Funds Umbrella – FMCG fund was the best performer, posting a 9 percent return in April.

(For a table of mutual fund returns in April, click on )

NEW DELHI (Reuters) – Have you exceeded your budget while swiping your credit card recently? If yes, a balance transfer could be a convenient way to delay your card payment with minimal interest, giving you time to arrange funds.

Making a partial payment or not paying your credit card bills can attract a high interest rate, more than 30 percent per annum in some cases, and can push you into a debt trap.

Using the balance transfer option provided by many credit card issuers in India, the interest outgo could be reduced to as low as zero percent for a few months, giving you enough time to arrange funds. Most banks would charge a nominal processing fee for this option.

But experts say that the availability of this service should not be the only criterion for making purchases and people should try and stay within their budget.

“While it is an excellent way to save interest, and one can certainly make the most of this facility to gain some time to get one’s personal finances in order, it is inadvisable to use this facility only as a means to delay payments,” says Dia Kirpalani, Senior Manager of Financial Planning at PersonalFN.

Having more than one credit card is a basic requirement for using this service, though one still needs to carefully check and calculate the processing fee and various interest rate options available on a particular credit card.

HOW IT WORKS?

NEW DELHI (Reuters) – Diversified equity funds fell in March, but less than the Sensex, as their exposure to mid-cap and defensive sectors helped cushion a selloff triggered by a disappointing budget and moves to tax foreign fund investments.

The outlook for shares in India remains clouded by uncertainties about growth and lingering concerns about inflation, which could again help funds that invest in companies that make soaps, toothpastes and detergents or healthcare firms outperform the broader market.

Diversified funds, which form the largest category of equity funds by number and assets, dropped 0.8 percent on average in March to register their first monthly fall in 2012, data from fund tracker Lipper, a Thomson Reuters company, showed.

In comparison, the BSE Sensex fell 2 percent during the month, as the pace of foreign fund investments slowed $1.47 billion from $7.5 billion that came in over the first two months of 2012.

“The outlook is cautious,” said R.K Gupta, managing director of Taurus Mutual Fund, adding an increase in service tax and excise duty would raise costs and pinch demand.

Foreign fund investments would also be restrained.

The finance minister said last week the government would look into the possible tax liability of foreign institutional investors, raising the prospect that brokerages and other financial firms with registered licences in India could be liable to pay taxes.

NEW DELHI, April 4 (Reuters) – India’s diversified stock funds fell in March, but less than the benchmark index, as their exposure to mid-cap and defensive sectors helped cushion a selloff triggered by a disappointing budget and moves to tax foreign fund investments.

The outlook for shares in India remain clouded by uncertainties about growth and lingering concerns about inflation, which could again help funds that invest in companies that make soaps, toothpastes and detergents or healthcare firms outperform the broader market.

Diversified funds, which form the largest category of equity funds by number and assets, dropped 0.8 percent on average in March to register their first monthly fall in 2012, data from fund tracker Lipper, a Thomson Reuters company, showed.

(For table of mutual fund returns, click )

In comparison, the benchmark index fell 2 percent during the month, as the pace of foreign fund investments slowed $1.47 billion from $7.5 billion that came in over the first two months of 2012.

“The outlook is cautious,” said R.K Gupta, managing director of Taurus Mutual Fund, adding an increase in service tax and excise duty would raise costs and pinch demand.

Foreign fund investments would also be restrained.

NEW DELHI (Reuters) – Diversified equity funds posted better returns than the BSE Sensex in February, helped by small and medium-sized stocks that rose on increased foreign and domestic buying.

Diversified funds, the largest category of stock funds in India by number and assets, returned an average 4.8 percent in the month, according to fund tracker Lipper, a Thomson Reuters company.

These funds outperformed the benchmark index, which rose 3.25 percent on robust inflows from foreign institutional investors (FIIs) and hopes of easing monetary policy.

Favourable global liquidity conditions encouraged foreign investors to buy more than $7 billion of Indian equities so far in 2012, pushing up the index by more than 14 percent.

“With the backing of FIIs, retail participation increased in mid- and small-caps, which pushed them higher,” said R. K. Gupta, managing editor at Taurus Mutual Fund. “However, the outlook for these shares is likely to be cautious going ahead.”

Mid- and small-cap shares accounted for more than a third of the assets of diversified funds at the end of January, and holdings of such stocks rose to the highest level since January 2011, Morningstar India data showed.

During the month, the BSE mid-cap index rose 8.8 percent while the small-cap index gained 6.14 percent.

NEW DELHI, March 2 (Reuters) – Diversified Indian equity funds posted better returns than the benchmark index in February, helped by small and medium-sized stocks that rose on increased foreign and domestic buying.

Diversified funds, the largest category of stock funds in India by number and assets, returned an average 4.8 percent in the month, according to fund tracker Lipper, a Thomson Reuters company.(For a table of fund returns, click )

These funds outperformed the benchmark index, which rose 3.25 percent on robust inflows from foreign institutional investors (FIIs) and hopes of easing monetary policy.

Favourable global liquidity conditions encouraged foreign investors to buy more than $7 billion of Indian equities so far in 2012, pushing up the index by more than 14 percent.

“With the backing of FIIs, retail participation increased in mid- and small-caps, which pushed them higher,” said R. K. Gupta, managing editor at Taurus Mutual Fund. “However, the outlook for these shares is likely to be cautious going ahead.”

Mid- and small-cap shares accounted for more than a third of the assets of diversified funds at the end of January, and holdings of such stocks rose to the highest level since January 2011, Morningstar India data showed.

During the month, the BSE mid-cap index rose 8.8 percent while the small-cap index gained 6.14 percent.

NEW DELHI (Reuters) – Diversified stock funds posted their best monthly return in nearly three years in January as a sharp rise in key stock prices and exposure to sectors such as financial services pushed up net asset values.

Diversified funds returned an average 11.68 percent to record their best monthly performance since May 2009, data from fund tracker Lipper, a Thomson Reuters company, showed.

The gains were about in line with the performance of the BSE Sensex, which clocked its strongest month since September 2010, gaining 11.3 percent on hopes of a revival in foreign fund inflows and an easing of monetary policy.

“Interest-rate sensitives rallied very strongly during the month and funds having higher exposure to them outperformed,” said Dhruva Raj Chatterji, senior research analyst at Morningstar India.

Mid- and small-cap stocks also aided fund performance in January. The BSE mid-cap index rose 14.35 percent and the small-cap index 16.45 percent, outperforming their larger peers.

Small and mid-cap stocks accounted for more than a third of diversified fund assets as of December 31, Morningstar data showed.

Bets on the financial services sector, which accounted for 20 percent of assets at end-December, also paid off as the BSE banking index surged by nearly a quarter in January.

NEW DELHI (Reuters) – Diversified stock funds posted their best monthly return in nearly three years in January as a sharp rise in key stock prices and exposure to sectors such as financial services pushed up net asset values.

Diversified funds returned an average 11.68 percent to record their best monthly performance since May 2009, data from fund tracker Lipper, a Thomson Reuters company, showed.

The gains were about in line with the performance of the BSE Sensex, which clocked its strongest month since September 2010, gaining 11.3 percent on hopes of a revival in foreign fund inflows and an easing of monetary policy.

“Interest-rate sensitives rallied very strongly during the month and funds having higher exposure to them outperformed,” said Dhruva Raj Chatterji, senior research analyst at Morningstar India.

Mid- and small-cap stocks also aided fund performance in January. The BSE mid-cap index rose 14.35 percent and the small-cap index 16.45 percent, outperforming their larger peers.

Small and mid-cap stocks accounted for more than a third of diversified fund assets as of December 31, Morningstar data showed.

Bets on the financial services sector, which accounted for 20 percent of assets at end-December, also paid off as the BSE banking index surged by nearly a quarter in January.