Last Week in Mutual Funds: 27th October

All that you need to know about Mutual Funds this week

SEBI directed that all fees and expenses in a direct plan under various heads, including the investment and advisory fees, should not be higher than the same expenses in a regular plan. Investors in Direct mutual funds stand to gain as the directive will bring down the Total Expense Ratio (TER) of Direct plans, in certain cases by as much as 0.5%. AMC’s have already started announcing revised TER for Direct plans.

 

NIFTY closed at its lowest level since Aug 28th and has erased all year to date gains. NIFTY is down 8.2% this month. Historical returns on NIFTY going back to 1990 suggest, that on average, NIFTY has seen a monthly decline of more than 8% every 10 – 11 months. Put differently, since 1990 there have been 39 monthly instances where NIFTY has decline more than 8%. So, even though in light of the past 3 years such moves seem dramatic, they actually are part and parcel of long-term investing.

 

Index Returns:
Index Weekly open Weekly close Change
BSE Sensex 34,315.63 33,349.31 -2.82%
Nifty 10,303.55 10,030.00 -2.65%
S&P BSE SmallCap 14,082.92 13,597.64 -3.45%
S&P BSE MidCap 14,058.30 13,870.15 -1.34%

Source- BSE/NSE

 

Top 5 best performing funds:
Name Week 3Y Category
KOTAK GOLD 0.9% 5.2% Fund of Funds
IDFC GOV SECURITIES 0.6% 7.0% Gilt Fund
IDBI GOLD 0.5% 3.4% Fund of Funds
ICICI PRU LONG TERM BOND 0.5% 7.7% Long Duration
ICICI PRU CONST MATURITY GILT 0.5% 7.8% Gilt Fund

Source – Kuvera.in

 

What investors bought:

We saw the most inflows in these 5 schemes –

Name 1Y 3Y Category
L&T EMERGING BUSINESSES -9.5% 16.7% Small Cap
HDFC MID CAP OPPORTUNITIES -9.7% 10.1% Mid Cap
ICICI PRU BLUECHIP -2.0% 10.3% Large Cap
HDFC SMALL CAP 0.4% 16.2% Small Cap
MIRAE ASSET INDIA EQUITY -2.9% 11.4% Multi 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
L&T EQUITY -5.8% 7.1% Multi Cap
ICICI PRU EQUITY AND DEBT -2.1% 11.3% Aggressive Hybrid
TATA RETIREMENT SAVING PROGRESSIVE -7.5% 11.5% Retirement Fund
L&T INDIA VALUE -11.9% 8.8% Value Fund
ABSL FRONTLINE -6.2% 8.1% Large Cap

Source – Kuvera.in

 

Movers and shakers at fund house:

1/ Essel Mutual Fund has sought SEBI nod for launching Essel Balanced Advantage Fund. This open-ended scheme would be managed by Viral Berawala and Killol P Pandya.

2/ Mirae, Parag Parikh, Edelweiss, Essel and ABSL are some of the AMCs that have released the revised TER for their schemes after recent SEBI circular.

 

Quote of the week:

I’ve had a lot of worries in my life, most of which never happened.

Mark Twain

 

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

Manvendra Singh Rathore and Niveditha Vishwamitra are analysts 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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2 Responses

  1. Srikanth says:

    Excellent updates and always look forward to it. One small correction. ABSL Frontline is a large cap, not a mid cap fund as stated.

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