Election Rally, Infrastructure Funds & Other MF News

All that you need to know about Mutual Funds this week

The market touched new highs last week following a landslide victory of the National Democratic Alliance (NDA). The Sensex and Nifty briefly crossed the 40,000 and 12,000 marks respectively on Thursday, 23 May 2019. Sensex rose 3.96%  during the week to close at 39,434.72 while Nifty went up by 3.83% to settle at 11,844.10.

Infrastructure funds outperformed this week, with all five of the top performing funds this week from this sector.

 

The long term performance of NIFTY Infrastructure Index has been poor. Since Aug 2010, the Index has been mostly flat versus a 120% gain in NIFTY 50.

 

The Securities and Exchange Board of India (SEBI) has permitted mutual funds to invest in commodity derivatives. The market regulator has allowed mutual funds to participate in all exchange-traded commodities derivatives (ETCDs) except the ‘sensitive commodities’. (Ex: agriculture)

Reliance Capital has decided to exit the mutual fund space by selling its 42.88% stake in Reliance Nippon Life Asset Management Ltd. (RNAM). Nippon Life would become the sole promoter of RNAM following its increase in stake in RNAM to 75%. Nippon Life currently holds 42.88% stake in RNAM. As per the press release by Reliance Capital, the estimated sale proceeds of Rs 6,000 crores would be utilised in its entirety by Reliance Capital to reduce the outstanding debt of the company by 33%.

 

Index Returns
Index Weekly open Weekly close Change
BSE Sensex 37,930.77 39,434.72 3.96%
Nifty 11,407.15 11,844.10 3.83%
S&P BSE SmallCap 13,887.14 14,699.56 5.85%
S&P BSE MidCap 14,308.36 14,945.24 4.45%

Source- BSE/NSE

 

Top 5 best performing funds
Name Week 3Y Category
HSBC INFRASTRUCTURE FUND 9.9% 5.2% Sectoral
HDFC INFRASTRUCTURE FUND 9.8% 7.6% Sectoral
IDFC INFRASTRUCTURE FUND 9.1% 16.0% Sectoral
SUNDARAM INFRA 9.1% 13.1% Sectoral
TATA INFRASTRUCTURE FUND 9.1% 12.1% Sectoral

Source – Kuvera.in

 

Top 5 worst performing funds
Name Week 3Y Category
EDELWEISS GR CHINA -5.1% 15.3% Fund of Funds
INVESCO EUROPEAN EQ -3.0% 4.9% Fund of Funds
ABSL EMERGING OPP -2.9% 4.6% Fund of Funds
INVESCO GLOBAL EQUITY -2.9% 7.0% Fund of Funds
ABSL INTERNATIONAL EQ -2.8% 10.7% Sectoral

Source – Kuvera.in

 

Top 5 best performing ELSS funds
Name Week 3Y Category
RELIANCE TAX SAVER 6.6% 10.1% ELSS
CANARA EQUITY TAX SAVER 5.8% 16.0% ELSS
HSBC TAX SAVER  5.7% 12.8% ELSS
PRINCIPAL TAX SAVING 5.6% 16.4% ELSS
SBI MAGNUM TAX GAIN 5.5% 11.2% ELSS

Source – Kuvera.in

 

What investors bought

We saw the most inflows in these 5 Funds –

Name 1Y 3Y Category
MIRAE ASSET LARGE CAP 12.9% 18.4% Large Cap
HDFC SMALL CAP -5.1% 19.1% Small Cap
UTI NIFTY INDEX 13.1% 15.9% Index Fund
KOTAK STD MULTICAP 12.5% 18.3% Multi Cap
L&T MIDCAP -6.8% 15.7% Mid Cap

Source – Kuvera.in

 

What investors sold

We saw the most outflows in these 5 Funds –

Name 1Y 3Y Category
INVESCO INDIA OPP 5.2% 16.8% Large & Mid Cap
HDFC CAP BUILDER VAL 3.4% 15.9% Value Fund
EDELWEISS LARGE & MID 4.2% 14.1% Large & Mid Cap
DHFL HYBRID EQ 6.3% 9.8% Aggressive Hybrid
INVESCO INDIA CONTRA 4.0% 18.0% Contra Fund

Source – Kuvera.in

 

Movers & Shakers

1/ Essel Mutual Fund has announced that Viral Berawala has ceased to be the Chief Investment Officer and Key Personnel of the AMC. Saravana Kumar has taken over the responsibilities of the post with effect from 17th May.

2/ Motilal Oswal Mutual Fund has announced that Gautam Sinha Roy has resigned from his role as Fund Manager and Key Personnel of the firm.

Quote of the week:

The journey is never ending. There’s always gonna be growth, improvement, adversity; you just gotta take it all in and do what’s right, continue to grow, continue to live in the moment.

: Antonio Brown

 

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