Last Week in Mutual Funds: 20th October

All that you need to know about Mutual Funds this week

Credit Suisse Global Wealth reports that total household wealth of Indian’s grew 9.7% (in INR terms) to $6 Trillion in the 12-month period to June 2018. The report estimates that India has 3.43 lakh USD millionaires (~ Rs 7 Crores) and expects the number of millionaires to grow at 8.9% annually.

91% of household assets in India are invested in property and other real assets (gold etc). Financial assets such as Mutual Funds, thus provide an easy way for the households to diversify their wealth.

 

By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.

Warren Buffett

We published a note this week on why you should consider index funds over actively managed funds. The choice of index funds available to Indian investors continues to increase. Soon 3 more index funds will be available – DSP BFSI Fund (NFO opens 22/Oct), Motilal Oswal Nasdaq 100 ETF (FOF) and DSP Nifty 50 Index Fund.

Equity Markets historically, have always been volatile in short-term – but can create serious wealth in the longer term. This falls into perspective when you look at the 18-year chart for NIFTY.

 

 

In a busy week for corporate activity, Reliance announced its plans to acquire a controlling stake in Hathway and Den Networks. Arcelor Mittal emerged as the winning bidder for Essar Steel, further boosting its status as a Steel Giant. Meanwhile, Tatas are in talks to acquire a controlling stake in debt-ridden Jet Airways.

Index Returns:
Index Weekly open Weekly close Change
BSE Sensex 34,733.58 34,315.63 -1.20%
Nifty 10,472.50 10,303.55 -1.61%
S&P BSE SmallCap 14,159.43 14,082.92 -0.54%
S&P BSE MidCap 14,286.22 14,058.30 -1.60%

Source- BSE/NSE

 

Top 5 best performing funds:
Name Week 3Y Category
DSP WORLD GOLD 7.3% 6.1% Fund of Funds
KOTAK WORLD GOLD 4.7% 5.9% Fund of Funds
HSBC MANAGED SOLUTIONS INDIA  3.7% 9.3% Fund of Funds
FRANKLIN US OPPORTUNITIES 2.2% 16.4% Fund of Funds
ABSL GOLD 1.8% 6.1% Fund of Funds

Source – Kuvera.in

 

What investors bought:

We saw the most inflows in these 5 schemes –

Name 1Y 3Y Category
L&T EMERGING BUSINESSES -4.8% 18.3% Small Cap
HDFC SMALL CAP 4.2% 17.7% Small Cap
PARAG PARIKH LONG TERM EQUITY 5.4% 12.7% Multi Cap
SBI BLUE CHIP -4.6% 8.6% Large Cap
CANARA ROBECO EMERGING EQUITIES -5.3% 12.2% Large & Mid Cap

Source – Kuvera.in

 

What investors sold:

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

Name 1Y 3Y Category
ABSL EQUITY SAVING -1.7% 7.9% Equity Savings
ICICI PRUDENTIAL BLUECHIP 1.3% 11.3% Large Cap
SUNDARAM RURAL & CONSUMPTION -8.7% 13.9% Sectoral
FRANKLIN INDIA BLUECHIP -3.1% 7.4% Large Cap
HDFC MID CAP OPPORTUNITIES -7.5% 10.9% Mid Cap

Source – Kuvera.in

 

Movers and shakers at fund house:

1/ ICICI Prudential Mutual Fund’s CEO Nimesh Shah has been elected as the Chairman of AMFI. Shah takes over from A Balasubramanian, CEO of Aditya Birla Sun Life Mutual Fund.

2/ Canara Robeco Mutual Fund has promoted Nimesh Chandan to the role of Head of Investment – Equity with immediate effect.

3/ Tata Mutual Fund has appointed Rahul Singh as the Chief Investment Officer – Equities, a role previously occupied by Gopal Agarwal.

4/ DSP Mutual Fund will launch DSP BFSI Next Index Fund on 22 October. This open-ended scheme will replicate S&P BSE Diversified Financials Revenue Growth Index.

5/ DSP Mutual Fund seeks approval from SEBI for launching DSP Nifty 50 Index Fund, to be managed by Gauri Sekaria.

 

Quote of the week:
I have seen many storms in my life. Most storms have caught me by surprise, so I had to learn very quickly to look further and understand that I am not capable of controlling the weather, to exercise the art of patience and to respect the fury of nature.

Paulo Coelho

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

Manvendra Singh Rathore is an Analyst at Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.

Start investing through a platform that brings goal planning and investing to your fingertips. Visit kuvera.in to discover Direct Plans and start investing today.

#MutualFundSahiHai, #KuveraSabseSahiHai!

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