Last Week in Mutual Funds: 29th September

All that you need to know about Mutual Funds this week

This was a week with high volatility where fear of unknown massively impacted stock prices of 3 stocks (DHFL, Yes Bank & Infibeam).

Stock price of DHFL dropped 55% since 21 September when DSP Mutual Fund sold AAA-rated bonds of DHFL at a yield of 11 percent. Yes Bank tumbled 54% from it’s all time high with RBI barring Rana Kapoor from continuing his stint as Chairman of Yes Bank. Stock price of Infibeam fell by 71% on 28 September after a Whatsapp message raising concerns about their accounting practices went viral.

Amidst fear and speculation, we wrote on What makes a great investor? We conclude that great investors do not rush into decisions, stick to long term investing plan and have the ability to ignore the market noise.

All time is uncertain. It was uncertain back in 2007, we just didn’t know it was uncertain. It was uncertain on October 18th, 1987, you just didn’t know it.

– Warren Buffet

The Government has stepped in to maintain liquidity in bonds market by announcing cuts in planned government borrowings. The government intends to limit its borrowings to Rs 2.47 lakh crore in the October-March period as compared to Rs 2.88 lakh crore in the first half  (reduction of Rs 41,000 crore).

Index Returns:

BSE Sensex and NIFTY were down by -1.67% and -1.91% respectively. Small Cap Index was down by -8.45% whereas Mid Cap Index corrected by -5.34% for the week.

Index Weekly open Weekly close Change
BSE Sensex 36,841.60 36,227.14 -1.67%
Nifty 11,143.10 10,930.45 -1.91%
S&P BSE SmallCap 15,763.10 14,430.68 -8.45%
S&P BSE MidCap 15,595.63 14,763.20 -5.34%

Source- BSE/NSE

 

Top 5 best performing funds:
Name Week 3Y Category
EDELWEISS GREATER CHINA EQUITY 4.7% 15.8% Fund of Funds
HSBC GLOBAL EMERGING MARKETS 4.1% 15.5% Fund of Funds
EDELWEISS EMERGING MARKETS 3.6% 15.6% Fund of Funds
HSBC ASIA PACIFIC YIELD 3.3% 17.1% Fund of Funds
DHFL PRAMERICA EURO EQUITY 2.6% 9.7% Fund of Funds

Source – Kuvera.in

 

What investors bought:

We saw the most inflows in these 5 schemes –

Name 1Y 3Y Category
HSBC SMALL CAP -8.0% 8.7% Small Cap
L&T EMERGING BUSINESSES 2.5% 20.0% Small Cap
MIRAE ASSET INDIA EQUITY 10.2% 15.5% Multi Cap
SBI BLUE CHIP 5.4% 11.5% Large Cap
KOTAK STANDARD MULTICAP 7.6% 14.4% 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
INVESCO INDIA OPPORTUNITIES 11.6% 14.6% Large & Mid
ICICI PRU BALANCED ADVANTAGE 7.0% 10.7% Balanced Advantage
ICICI PRU BLUECHIP 11.5% 14.4% Large Cap
ABSL FRONTLINE EQUITY 4.6% 11.8% Large Cap
MOTILAL OSWAL MULTICAP 35 -0.4% 13.5% Multi Cap

Source – Kuvera.in

 

Movers and shakers at fund house:

1/ Axis Mutual Fund announced the launch of Axis Growth Opportunities Fund, an open-ended equity scheme that will invest in domestic equities as well as foreign securities

2/ Essel Mutual Fund seeks SEBI approval for launching Essel Focused Equity Fund. This fund will be managed by Viral Berawala.

3/ HSBC Mutual Fund is launching HSBC Equity Hybrid Fund, that invests predominantly in equity and equity-related instruments. This fund will be managed by Neeloptal Sahai and Sanjay Shah.

 

Quote of the week:

Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.

– Warren Buffet

 

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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