India's diversified stock funds fell the most in six months in May, pulled down by banks and automobiles amongothers.
Any chance for a rebound is unlikely after March-quarter gross domestic product growth fell to its slowest pacein nine years.
"It's going to be very, very tough," said T.P. Raman, managing director of Sundaram Mutual Fund. "Neither whatthe government is doing is right, nor what globally things are happening are right."
Diversified funds fell 5.65 percent in May, their worst monthly performance since November and the thirdconsecutive month of decline, according to data from fund tracker Lipper. In comparison, the main BSE indexfell 6.4 percent.
Many economists say the problems are self-inflicted such as the government's inability to cut subsidies, remove delays in decision-making and push reforms, rather than the external environment that the New Delhi has beenblaming.
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