The lacklustre performance of equity markets has taken its toll on growth funds. Investors looking for some sanity may want to look at income/gilt funds which have held their own in times of volatility.

Open-ended IT funds	NAV (Rs)	Last week	Last month	Since inception
Tata IT Sector Fund	12.5	-1.0%	-27.9%	27.8%
IL&FS eCOM Fund (Gr)	6.7	-1.0%	-35.9%	-51.2%
K Tech	7.9	-3.1%	0.0%	0.4%
Pru ICICI Tech. Fund (Gr)	6.2	-3.1%	-31.4%	-37.3%
Kothari Pioneer Internet Opport. (Gr)	8.2	-3.3%	-14.2%	-14.5%
UTI Sector Fund - Software	23.0	-3.3%	-36.8%	76.5%
Kothari Pioneer Infotech (Gr)	29.8	-3.5%	-30.5%	193.1%
Magnum Sector Funds - IT	16.4	-4.4%	-38.3%	130.1%
Chola Freedom Technology (Cum)	16.2	-4.5%	-25.2%	22.3%
Sun F & C Emerging Tech. (Gr)	7.2	-4.8%	-20.2%	-16.2%
Alliance New Millennium Fund (Gr)	8.4	-5.6%	-34.8%	-45.1%

The listlessness in TMT (technology, media, telecom) stocks had its corresponding effect on growth funds, particularly those over-exposed to these stocks. As is reflected in the above table, 1-week returns of IT funds are in the negative.

Open-ended Gilt funds	NAV (Rs)	Last week	Last month	Since inception
Zurich (I) Sov Gilt (PT)(Div)	10.2	0.5%	0.1%	2.0%
Zurich (I) Sov Gilt (PT)(Gr)	10.2	0.5%	0.1%	2.0%
Zurich (I) Sov Gilt (IP)(Div)	10.2	0.3%	0.6%	2.1%
Zurich (I) Sov Gilt (IP)(Gr)	10.2	0.3%	0.6%	2.1%
Alliance Govt. Sec. (ST)(Gr)	1,073.9	0.3%	1.0%	7.1%
LIC MF Govt. Sec. Fund (Gr)	10.8	0.3%	1.0%	7.4%
LIC MF Govt. Sec. Fund (Div)	10.5	0.3%	1.0%	7.2%
Birla Gilt Plus Liquid Plan (Div)	10.5	0.3%	1.0%	5.0%
Birla Gilt Plus Liquid Plan (Growth)	10.9	0.3%	1.0%	9.2%

Its not such a bad idea for mutual fund investors to look at income and gilt funds which have been very safe in these volatile times. While 1-week returns of income/gilt funds are very modest, what is important is that the returns are positive, unlike returns of growth funds over the last week.

Open-ended Income funds	NAV (Rs)	Last week	Last month	Since inception
Deposit I-NIT 1997 (Plan A)	11.0	5.0%	1.2%	25.6%
Deposit I-NIT 1997 (Plan B)	10.9	4.4%	5.2%	5.9%
Cancigo	1,116.1	0.7%	-1.1%	11.5%
UTI Bond Fund	12.8	0.5%	1.3%	13.5%
Tata Income Fund (App)	15.0	0.4%	-0.3%	13.9%
Magnum Liquibond Income (Div)	10.6	0.4%	0.9%	12.5%
Magnum Liquibond Income (Gr)	12.1	0.4%	0.9%	13.5%
Kothari Pioneer Child. Asset	12.5	0.3%	0.8%	14.3%
Chola Freedom Income (Reg)	10.2	0.3%	1.2%	10.9%
ING Income Portfolio (Div.)	10.3	0.3%	1.1%	6.1%
Zurich India High Int. (Div)	10.4	0.3%	1.3%	12.6%
DSP ML Bond (Dividend)	10.7	0.3%	0.8%	12.3%
Zurich India High Int. (Gr)	14.7	0.3%	1.2%	13.0%
ING Income Portfolio (Gr.)	11.3	0.3%	1.1%	12.3%

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