Equity investors are not the only ones affected by the crisis in equity markets. Equity (growth) fund investors also have reason to frown.

Currently equity markets are witnessing some of the most harrowing times ever. Rarely has the market fallen so sharply over a period of 2-3 days. Ironically this has come on the heels of what most people felt was a great budget (upwards of 7 out of 10, as reported by business dailies).

Open-ended, Growth Schemes	NAV(Rs)	Last week	Last month	Last year	Inception
BSE - 30	-	-5.3%	-6.3%	-35.9%	-
S&P CNX Nifty	-	-5.0%	-6.0%	-28.9%	-
S&P CNX 500	-	-7.0%	-11.4%	-71.6%	-
ING Growth (Gr)	10.2	-18.5%	-28.8%	-73.9%	1.8%
Magnum Global Fund	8.7	-10.8%	-17.3%	-65.6%	-0.7%
Libra Leap	14.1	-10.5%	-20.1%	-62.9%	18.6%
IL&FS Gr & Val (Gr)	11.6	-10.2%	-13.7%	-57.5%	-3.4%
Canexpo	14.6	-10.0%	-17.1%	-52.7%	7.3%
Magnum Multiplier Plus 1993	12.4	-9.8%	-20.2%	-72.6%	3.8%
Magnum Equity Fund	10.9	-9.2%	-16.8%	-70.3%	11.7%
JM Equity Fund (Gr)	8.7	-8.8%	-15.4%	-54.8%	-1.8%
Taurus Starshare	7.4	-8.7%	-15.2%	-50.5%	-5.2%
Dhanavikas (1)	6.8	-8.1%	-17.3%	-41.8%	-4.7%

As is evident from the table above, diversified growth funds have fallen fast and hard. Unfortunately this has happened at a time when the mutual fund industry was supposed to really benefit from the reduction in dividend tax from 20% to 10% on income funds, lowering of limit under Section 80 L from Rs 12,000 to Rs 9,000 and reduction in TDS limit from Rs 10,000 to Rs 2,500 on bank deposits.

Mutual fund investors can't really be blamed for exiting their funds at this moment. There is a credibility crisis on the bourses right now and if SEBI doesn't do something about that fast investor confidence in capital markets is going to touch all-time lows.

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