Last Week in Mutual Funds: 1st September

All that you need to know that happened last week in Mutual Funds.

Growth is back! Government data shows GDP growth for the first quarter (Apr-Jun) of FY2018-19 at 8.2%, the highest in 2 years. The actual growth handily beat a Reuters survey of economists that had expected GDP growth at 7.6%. Manufacturing sector led the way with a growth of 13.5%. With China posting a 6.7% growth in the same quarter, this firmly establishes India as the fastest-growing major economy. Strong growth, historically, has led to better corporate earnings and consequently a stronger stock market.

The India Post Payments Bank is set for a launch giving a big boost to banking access in rural India. The Indian post department has around 1,30,000 service points in rural India while there are about 50,000 bank branches in rural India.

Just as it has done globally, Index funds are gaining popularity in India as well with Mirae Asset seeking to launch a Nifty 50 Index fund. Index funds track the constituent of an Index (Nifty 50, Next Nifty 50, BSE Sensex etc) and have low expense ratios. You can track existing Index funds here.

What worked best:

Equity markets continued the strong bull run as BSE Sensex and NIFTY rose by 1.03% and 1.07% respectively over the week. Small Cap Index surged by 1.95% whereas Mid Cap Index outperformed to close up 1.99% for the week.

Index Weekly open Weekly close Change
BSE Sensex 38,251.80 38,645.07 1.03%
Nifty 11,557.10 11,680.50 1.07%
S&P BSE SmallCap 16,864.43 17,193.20 1.95%
S&P BSE MidCap 16,552.74 16,881.33 1.99%

Source- BSE/NSE

Top 5 best performing funds:
Name
Week 3Y Category
FRANKLIN INDIA FF US 3.6% 15.8% Fund of Funds
DSP WORLD AGRICULTURE 3.2% 6.1% Fund of Funds
FRANKLIN INDIA FF EUROPEAN 3.1% 6.1% Fund of Funds
DHFL PRAMERICA GLOBAL AGRI 3.0% 6.3% Fund of Funds
SUNDARAM GLOBAL ADVANTAGE 3.0% 11.1% Fund of Funds

Source – Kuvera.in

What investors bought:

We saw the most inflows last week in these 5 schemes –

Name 1Y 3Y Category
SBI BLUE CHIP 10.9% 14.0% Large Cap
HDFC SMALL CAP 24.8% 22.9% Small Cap
L&T EMERGING BUSINESSES 12.3% 23.7% Small Cap
CANARA ROBECO EMERGING EQUITIES 16.5% 20.2% Large & Mid Cap
HDFC MID CAP OPPORTUNITIES 12.9% 17.3% Mid Cap

Source – Kuvera.in

What investors sold:

We saw the most outflows last week in these 5 schemes (excluding liquid and short-term schemes) –

Name 1Y 3Y Category
AXIS ARBITRAGE 6.6% 6.8% Arbitrage
SBI MAGNUM MIDCAP 3.3% 10.9% Mid Cap
RELIANCE MULTI CAP 14.9% 10.5% Multi-Cap
SBI MAGNUM MULTICAP 12.5% 16.8% Multi-Cap
HDFC BALANCE ADVANTAGE 14.0% 15.1% Balanced Advantage

Source – Kuvera.in

Movers and shakers at fund house:

1/ Principal Financial Group completed full ownership of their joint venture, Principal Pnb Asset Management Company Private Limited. Punjab National Bank had previously owned a 21.38% stake in Principal PNB AMC.

2/ Canara Robeco Mutual Fund announced the resignation of Mr Shital Kumar Jain as the director on Board of Directors of Canara Robeco Asset Management Company Limited.

3/ UTI Mutual Fund announced the resignation of Mr P N Venkatachalam as a director on the Board of Directors of UTI Asset Management Company Ltd. (UTI AMC) effective from Aug 16.

Quote of the week:

India’s sustained growth reflects its strong resilience to adverse global conditions, because of strong economic fundamentals. The encouraging growth rates in agriculture, manufacturing and construction show that the growth momentum continues to be broad-based. – Bibek Debroy, Chairman of the Economic Advisory Council to Prime Minister

 

This market update was initially published by CNBCTV18 in the Personal Finance section.

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