Banking sector funds fare the worst in a week

Banking sector-dedicated funds with 4.05 per cent negative average returns were the worst performing scheme categories in the week to Tuesday. Diversified equity funds with 2.68 per cent negative average returns, and pharmaceutical sector-dedicated funds with 2.64 per cent negative average returns, featured among the worst performers.

Though banking funds were the worst hit, the category managed to outperform Bank Nifty that fell 4.61 per cent and BSE Bankex that was down 4.52 per cent. During the week, bankex fell as some of the PSBs reported higher incidences of bad assets and provisioning towards NPAs.