Last Week in Mutual Funds: 2nd February

All that you need to know about Mutual Funds this week

On 1/Feb the centre presented a farm-friendly, consumption-oriented budget ahead of the general elections. An important announcement was the doubling of income tax rebate for individuals. The Finance Minister, Piyush Goyal, announced full tax rebate for income-tax payers earning up to Rs 5 lakh per annum. With this, individuals earning upto Rs 6.5 lakh would not need to pay any tax if they invest Rs 1.5 lakh under Section 80C of the Income Tax Act. The standard deduction available to salaried taxpayers was also increased from Rs 40,000 to Rs 50,000.

A leaked National Sample Survey Office (NSSO) report shows that the country’s unemployment rate is at a 45-year high of 6.1%. The report further said that unemployment was higher in urban areas (7.8 per cent) as compared to 5.3 per cent in rural areas of the country. The Government, however, claimed that the report was being processed and would be released once done.

Stock Prices of Essel Group companies fell sharply on 25/Jan after a media report suggested that the group might be linked to Nityank Infrapower (a company that’s being probed for fraud). Serious Fraud Investigation Office (SFIO) is probing Nityank Infrapower for deposits of over Rs 3,000 crore post-demonetisation announcement. As many as 10 mutual fund houses have investments in Essel Group companies.

DHFL was another stock that fell sharply during this week amidst rising uncertainties in the NBFC space that froze credit-lending operations of the company. The company has lost more than 73% of its share price in the past four months. However, several fund houses had exposure worth about Rs 8,650 crore to DHFL and its group entities, as on 31/Dec 2018.

The fund houses with most exposure to shares of DHFL Group companies include:

 

Index Returns:
Index Weekly open Weekly close Change
BSE Sensex 36,025.54 36,469.43 1.23%
Nifty 10,780.55 10,893.65 1.05%
S&P BSE SmallCap 14,000.20 13,950.45 -0.36%
S&P BSE MidCap 14,681.82 14,641.38 -0.28%

Source- BSE/NSE

 

Top 5 best performing funds:
Name Week 3Y Category
KOTAK WORLD GOLD 10.3% 10.5% Fund of Funds
DSP WORLD GOLD 8.4% 12.0% Fund of Funds
DSP WORLD MINING 5.9% 23.5% Fund of Funds
EDELWEISS GREATER CHINA EQUITY 4.0% 14.2% Fund of Funds
TATA DIGITAL INDIA 3.7% 13.4% Sectoral

Source – Kuvera.in

Top 5 worst performing funds:
Name Week 3Y Category
HSBC INFRASTRUCTURE EQUITY -2.0% 0.6% Sectoral
HDFC INFRASTRUCTURE -1.8% 3.3% Sectoral
IDFC INFRASTRUCTURE -1.7% 10.5% Sectoral
IDBI MIDCAP -1.4% 3.3% Mid Cap
RELIANCE POWER AND INFRA -1.4% 9.3% Sectoral

Source – Kuvera.in

 

Top 5 best performing ELSS funds:
Name Week 3Y Category
CANARA ROBECO EQUITY TAX SAVER 1.6% 13.7% ELSS
MIRAE ASSET TAX SAVER 1.6% 21.2% ELSS
DHFL PRAMERICA LONG TERM EQUITY 1.5% 13.1% ELSS
INVESCO INDIA TAX 1.5% 14.6% ELSS
BNP PARIBAS LONG TERM EQUITY 1.5% 10.1% ELSS

Source – Kuvera.in

 

Top 5 worst performing ELSS funds:
Name Week 3Y Category
MOSL LONG TERM EQUITY -0.2% 16.4% ELSS
HDFC TAX SAVER 0.2% 13.6% ELSS
ICICI PRU LONG TERM EQUITY 0.3% 11.8% ELSS
KOTAK TAX SAVER 0.3% 15.0% ELSS
AXIS LONG TERM EQUITY 0.4% 12.4% ELSS

Source – Kuvera.in

 

What investors bought:

We saw the most inflows in these 5 schemes –

Name 1Y 3Y Category
MIRAE ASSET INDIA EQUITY -2.5% 17.1% Multi Cap
HDFC SMALL CAP -7.8% 19.7% Small Cap
KOTAK STANDARD MULTICAP -2.6% 16.3% Multi Cap
ADITYA BIRLA SUN LIFE TAX RELIEF96 -4.5% 14.7% ELSS
UTI NIFTY NEXT 50 INDEX NA -5.4% Index

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
MIRAE ASSET EMER BLUECHIP -6.2% 17.2% Large & Mid
ICICI PRU BANKING AND FIN. -5.5% 24.0% Sectoral
HDFC TOP 100 -2.5% 16.8% Large Cap
SBI MAGNUM MIDCAP -16.1% 7.1% Mid Cap
HDFC BALANCE ADVANTAGE -3.2% 16.0% Hybrid

Source – Kuvera.in

 

Movers and shakers at fund house:

1/ Kotak Mutual Fund has announced that Kotak Global Emerging Market Fund, Kotak India Growth Fund Series 4,5 and 7 will be managed by Mr. Deepak Gupta, Mr. Devender Singhal, Mr. Harish Krishnan and Mr. Devender Singhal, respectively.

 

Quote of the week:

Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into acceptance, chaos to order, confusion to clarity. It can turn a meal into a feast, a house into a home, a stranger into a friend.

Melody Beattie

 

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

Niveditha Vishwamithra 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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