Last Week in Mutual Funds: 22nd December

All that you need to know about Mutual Funds this week

9.74 lakh SIP accounts were added each month during this financial year with an average ticket size being Rs 3,200, as per AMFI data. Despite market volatility, SIP inflows from retail investors stood at Rs 7,985 crore in November 2018, a 42% increase as compared to the previous year.

With Tax season around the corner, a tax saving ELSS fund made the top five funds where we saw the most inflows this week. A timely reminder that if you haven’t done your tax planning, you should do it now.

International Funds went through a major correction this week with all 5 funds in worst performing funds list belonging to this category. NASDAQ the tech index in the US, closed the week down 21.9% from its Aug. 29 record closing high. A 20% decline is considered the threshold for a bear market. The S&P 500 is down 17.5% from its Sept. 20 record high close.

 

The year 2018 witnessed increasing awareness and demand in passive (or Index) investing. Passive investing has gained traction over the past decade, growing from Rs 9,000 crore in 2008 to over Rs 1 lakh crore in August 2018. We have been a proponent of index first approach to portfolio construction since the start and you can see our index recommendations here.

 

Index Returns:
Index Weekly open Weekly close Change
BSE Sensex 35,962.93 35,742.07 -0.61%
Nifty 10,805.45 10,754.00 -0.48%
S&P BSE SmallCap 14,501.76 14,633.62 0.91%
S&P BSE MidCap 15,192.84 15,253.00 0.40%

Source- BSE/NSE

 

Top 5 best performing funds:
Name Week 3Y Category
INVESCO INDIA PSU 3.2% 9.1% Sectoral
DSP NATURAL RES. & NEW ENERGY 2.8% 22.3% Sectoral
SBI CONTRA 2.5% 8.3% Contra
SBI PSU GROWTH 2.2% 4.3% Sectoral
SBI SMALL CAP 2.1% 17.0% Small Cap

Source – Kuvera.in

 

Top 5 worst performing funds:
Name Week 3Y Category
FRANKLIN FEEDER US OPPOR -9.7% 9.3% Fund of Funds
KOTAK US EQUITY -8.0% 9.2% Fund of Funds
ICICI PRUDENTIAL US BLUECHIP -8.0% 12.1% Sectoral
EDELWEISS GREATER CHINA -7.7% 7.5% Fund of Funds
PRINCIPAL GLOBAL OPPOR -7.6% 7.7% Fund of Funds

 

What investors bought:

We saw the most inflows in these 5 Mutual Funds schemes –

Name 1Y 3Y Category
L&T MIDCAP -9.5% 15.4% Mid Cap
HDFC SMALL CAP -3.7% 18.3% Small Cap
CANARA ROB. EMER. EQUITIES -6.4% 14.5% Large & Mid Cap
ABSL TAX RELIEF96 -2.3% 14.4% ELSS
INVESCO INDIA CONTRA 1.0% 17.5% Contra

Source – Kuvera.in

 

What investors sold:

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

Name 1Y 3Y Category
KOTAK STANDARD MULTICAP 1.2% 15.6% Multi Cap
ABSL FRONTLINE EQUITY -0.8% 12.8% Large Cap
MOTILAL OSWAL MULTICAP 35 -5.8% 14.8% Multi Cap
MIRAE ASSET INDIA EQUITY 2.3% 16.1% Multi Cap
HDFC HYBRID EQUITY -9.7% 7.7% Hybrid

Source – Kuvera.in

 

Movers and shakers at fund house:

1/ Pramerica Financial is set to acquire DHFL’s stake in DHFL Pramerica Asset Managers (DPAM). This transaction will make DPAM a wholly-owned subsidiary of Prudential Financial, which is among the top 10 largest investment managers in the world with more than $1 trillion in assets under management.

2/ Sources confirmed that IDFC has shelved its plans to sell IDFC AMC, and has decided to focus more on the retail segment with its Mutual Fund business.

 

Quote of the week:
A holiday is an opportunity to journey within. It is also a chance to chill, to relax. It is when I switch on my rest mode.
Prabhas

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.

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