The BSE Sensex closed higher by 9% to 4,453.5 points on Friday (June 2, 2000). This translated into some significant gains for plain vanilla growth and sectoral schemes over the week.

Open-ended IT Schemes	NAV (Rs)	Last week	Last month	Last year	Since inception
Alliance New Millennium (Gr)	8.15	11.00%	-3.10%	0.00%	-46.70%
IL&FS eCOM Fund (Gr)	6.27	10.40%	-4.90%	0.00%	-54.00%
UTI Sector- Software	21.27	9.10%	-6.80%	0.00%	63.00%
Magnum Sector Funds-IT	14.35	8.60%	-11.30%	0.00%	101.10%
Pru ICICI Tech. (Gr)	5.68	8.20%	-7.60%	0.00%	-42.30%
DSP ML Technology.com (Gr)	8.56	8.10%	0.00%	0.00%	0.20%
Sun F & C Emerging Tech. (Gr)	7	8.00%	-3.20%	0.00%	-18.20%
Chola Freedom Tech (Cum)	15.46	7.30%	-5.40%	20.40%	19.40%
K Tech	7.49	6.60%	-4.40%	0.00%	-4.40%
K P Internet Opport.(Gr)	7.95	6.40%	-4.70%	0.00%	-17.00%
K P Infotech (Gr)	27.12	6.20%	-9.20%	182.80%	167.80%
Tata IT Sector Fund	11.63	5.80%	-4.50%	101.50%	25.00%
Birla IT Fund (Gr)	19.92	5.40%	-5.60%	84.30%	15.50%

IT funds showed some positive returns for a change. However, returns over the last month continue to sag. Given the uncertainty in the markets regarding technology, media and telecom stocks, investors should remain content with observing the performances of these funds, instead of entering them. The skepticism in TMT stocks is a little too overwhelming even at current levels. As one fund manager remarked  I don't see anything beyond speculative trading in software stocks over the next few months.

Open-ended FMCG Schemes	NAV (Rs)	Last week	Last month	Last year	Since inception
K P FMCG (Gr)	11.55	8.10%	7.60%	9.60%	16.20%
Pru ICICI FMCG (Gr)	9.55	6.30%	5.90%	-7.20%	-7.10%
Magnum Sector-FMCG	8.52	5.60%	1.50%	0.00%	-17.40%

We maintain our view that FMCG funds are best placed among all sectoral funds to ride the growth in the markets. Although historically FMCG stocks have lagged software stocks on their way up, they have also fallen a lot more softly. Moreover, the positive monsoon outlook will see FMCG companies like Hindustan Lever, Britannia, Nestle, Cadbury clock higher sales especially from rural areas.

Open-ended Pharma Schemes	NAV (Rs)	Last week	Last month	Last year	Since inception
K P Pharma (Gr)	9.81	7.20%	6.70%	3.80%	4.50%
Magnum Sector-Pharma	9.30	9.80%	9.20%	0.00%	-7.60%
UTI Sector-Pharma	9.99	11.20%	8.60%	0.00%	-16.30%

Pharma stocks have also moved up significantly and there are some who see some value in Indian pharma companies at current levels. In any case, the last week witnessed growth in all pharma funds. And like FMCG funds, pharma funds also posted gains in the last month. Investors who don't want to burn their fingers in IT funds, could look at entering pharma funds. However, pharma funds will be a riskier proposition as compared to FMCG funds.

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