Last Week in Mutual Funds: 6th October

All that you need to know about Mutual Funds this week

Another week, another sea of red. In a week where we saw broad-based declines in equity funds,  international funds and gold had positive returns. Gold showed the diversification benefits as a hedge against market panic, but its lacklustre performance during long bull markets defeats the argument of including it as part of one’s portfolio allocation.

All said and done, do realize that accumulating more units with Nifty around 10k is better than accumulating more units with Nifty at 11.5k. So, if at 11.5k the thought of stopping your SIPs didn’t cross your mind, it should not cross your mind now.

 

Take the word of experience, I speak the truth: inaction is safest in danger.

– Silius Italicus

 

Urjit Patel (RBI Governor) said that RBI’s forex reserves at present are sufficient to finance 10 months of imports. He also indicated that RBI will let the market determine the Rupee-Dollar exchange range. The government’s decision to cut fuel prices didn’t go well for oil marketing companies whose stocks price fell down as much as 34%. Oil marketing companies stand to lose marginal profits after this cut.

Indian Markets have gone through extended volatility during 2018. This week we examined the performance of our all-weather portfolio which we first recommended in Jan 2017. We also advised on updates to our recommended portfolio. You can find the Performance & Recommended Portfolio Update here.

Recommended portfolio performance:

 

Index Returns:

BSE Sensex and NIFTY were down by -5.11% and -5.62% respectively. Small Cap Index was down by -4.09% whereas Mid Cap Index corrected by -5.14% for the week.

Index Weekly open Weekly close Change
BSE Sensex 36,227.14 34,376.99 -5.11%
Nifty 10,930.45 10,316.45 -5.62%
S&P BSE SmallCap 14,430.68 13,840.26 -4.09%
S&P BSE MidCap 14,763.20 14,003.81 -5.14%

Source- BSE/NSE

 

Top 5 best performing funds:
Name Week 3Y Category
CANARA ROBECO GOLD SAVING 11.5% 4.8% Fund of Funds
DSP WORLD GOLD 4.3% 9.3% Fund of Funds
KOTAK WORLD GOLD 3.9% 9.4% Fund of Funds
DSP WORLD MINING 3.5% 22.5% Fund of Funds
SBI GOLD 3.2% 4.8% 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 -4.2% 18.0% Small Cap
HDFC SMALL CAP 8.5% 18.4% Small Cap
MIRAE ASSET INDIA EQUITY 4.0% 13.7% Multi Cap
HDFC MID CAP OPPORTUNITIES -4.2% 11.7% Mid Cap
UTI NIFTY INDEX 8.0% 11.1% Index Funds

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
HDFC TOP 100 6.2% 12.6% Large Cap
FRANKLIN INDIA SMALLER COMPANIES -8.5% 11.1% Small  Cap
ICICI PRUDENTIAL BALANCED ADVANTAGE 4.3% 10.0% Balanced Advantage
L&T EQUITY 0.2% 8.9% Multi Cap
FRANKLIN INDIA BLUECHIP 1.5% 8.9% Large Cap

Source – Kuvera.in

 

Movers and shakers at fund house:

1/ Reports suggest that Muthoot Finance has received approval from SEBI to start its Mutual Fund operations in India.

2/ Shridatta Bhandwaldar has been appointed as fund manager of Canara Robeco Infrastructure Fund at Canara Robeco Mutual Fund. He will be replacing Yogesh Patil.

3/ Invesco Mutual Fund has applied with Securities and Exchange Board of India for approval to launch Invesco India Equity Savings Fund

 

Quote of the week:

Hundreds of investors ask me questions each year about the dilemmas they confront. Their worst problem? Uncertainty. They are traumatized and become emotional or confused to the state of inaction. Even worse, they try to solve a short-term problem in a way that hurts them financially in the long run.

– Kenneth Fisher

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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