Gold funds, DHFL & RBI Rate Cut & Other MF News

All that you need to know about Mutual Funds this week

Gold funds outperformed this week, with two of the five top performing funds this week from this sector. Gold funds delivered on their diversification benefit during the global financial crisis of 2008-2009. Since then the returns have been largely flat. 

 

On June 4th, DHFL missed its deadline to make a payment of Rs 1150 crore to its bondholders. Mutual fund houses which had exposure to these papers marked down their investment in DHFL securities by 75%, with some AMCs (like UTI) making a full write-off. Most Fund houses have restricted fresh investment in schemes that were most impacted by the write-down, while others introducing exit load conditions where there were none earlier (E.g.: UTI) to safeguard investor interests.

 

In the first formal use of SEBI’s side-pocketing provision, Tata Mutual Fund has announced the launch of segregated portfolios in a few schemes affected by DHFL default. The fund house intends to start side pocketing in 3 of its schemes (Tata Corporate Bond Fund, Tata Medium Term Fund and Tata Treasury Advantage) from 14th June onward.

 

In line with market expectations, the RBI reduced the repo rate by 25 basis points from 6% to 5.75%. The RBI also decided to change the monetary policy stance from neutral to accommodative.

Index Returns
Index Weekly open Weekly close Change
BSE Sensex 39,714.20 39,615.90 -0.25%
Nifty 11,922.80 11,870.65 -0.44%
S&P BSE SmallCap 14,867.04 14,657.09 -1.41%
S&P BSE MidCap 15,096.18 14,906.38 -1.26%

Source- BSE/NSE

 

Top 5 best performing funds
Name Week 3Y Category
KOTAK WORLD GOLD 9.8% -7.9% Fund of Funds
DSP WORLD GOLD 8.9% -4.5% Fund of Funds
INVESCO GLOBAL EQ 3.3% 5.7% Fund of Funds
INVESCO EUROPEAN EQ 3.0% 3.8% Fund of Funds
HSBC BRAZIL 2.4% 17.1% Fund of Funds

Source – Kuvera.in

 

Top 5 worst performing funds
Name Week 3Y Category
DHFL MEDIUM TERM -52.9% -18.4% Medium Duration
DHFL FLOATING RATE -48.3% -13.7% Floater Fund
TATA CORPORATE BOND -29.5% -6.8% Corporate Bond
BARODA TREASURY ADV -16.9% 0.9% Low Duration Fund
PRINCIPAL DURATION -16.4% 0.9% Low Duration Fund

Source – Kuvera.in

 

Top 5 best performing ELSS funds
Name Week 3Y Category
MOTILAL OSWAL LONG TERM EQUITY 0.0% 16.3% ELSS
LIC MF TAX  -0.1% 14.0% ELSS
MIRAE ASSET TAX SAVER -0.2% 12.8% ELSS
BNP PARIBAS LONG TERM EQUITY -0.2% 11.0% ELSS
AXIS LONG TERM EQUITY -0.3% 15.2% ELSS

Source – Kuvera.in

 

What investors bought

We saw the most inflows in these 5 Funds –

Name 1Y 3Y Category
UTI NIFTY INDEX 12.0% 14.2% Index Fund
HDFC SMALL CAP  -1.6% 18.8% Small Cap
MIRAE ASSET LARGE CAP 12.6% 17.0% Large Cap
KOTAK STD MULTICAP 11.9% 16.9% Multi Cap
PARAG PARIKH LTE 5.8% 13.8% Multi Cap

Source – Kuvera.in

 

What investors sold

We saw the most outflows in these 5 Funds –

Name 1Y 3Y Category
HDFC HYBRID EQUITY 8.3% 11.2% Aggressive Hybrid
SBI EQUITY HYBRID  10.4% 12.9% Aggressive Hybrid
TATA INDIA CONSUMER -5.1% 20.4% Sectoral
ICICI PRU EQUITY & DEBT 9.3% 14.9% Aggressive Hybrid
MOSL MULTICAP 35 2.1% 15.1% Multi Cap

Source – Kuvera.in

 

Movers & Shakers

1/ LIC Mutual Fund has announced that Farzana Sayyed will cease to be a Key Personnel of the AMC, following her resignation from the post of Fixed Income Dealer.

Quote of the week:

Have patience. All things are difficult before they become easy.

: Saadi

 

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