Technology Fund outperform, Index Flows & Other MF News

All that you need to know about Mutual Funds this week

Technology fund outperformed with the NIFTY IT index up 3.8% for the week. 4 out of the top 5 best performing funds invest in digital or technology space. Data going back to 2006 shows that returns of NIFTY IT index have mostly been inline with the NIFTY 50 Index.

 

Index investing is picking up in India. We have long been a proponent of an Index first well-diversified portfolio. It is heartening to see that two Index funds (UTI Nifty Index and UTI Nifty Next 50 Index) featured in the highest equity inflows we saw this week.

ICICI Prudential Mutual Fund has launched the NFO for ICICI Prudential MNC Fund, an open-ended equity scheme following MNC theme. The NFO is open for subscription from 28 May to 11 June. You can find NFOs on Kuvera here.

Parag Parikh Mutual Fund has received SEBI approval for launching its second equity scheme in 6 years. The fund house is expected to launch its Tax Saver Fund in the first week of July. As per Rajeev Thakkar, CIO – Parag Parikh Mutual Fund, the portfolio of Parag Parikh Tax Saver Fund would resemble that of Parag Parikh Long Term Equity Fund, apart from exposure to international equities.

DHFL Pramerica Mutual Fund has announced the merger of four of its debt schemes. As per the notice released by the Fund House:

Unitholders who do not wish to retain their holdings in the merging schemes can redeem their units without any exit load between 22nd May and 22nd June 2019. There will be no changes in the fundamental attributes of the surviving scheme.

NDA government has announced the list of its cabinet ministers. Some of the prominent ministers include Nirmala Sitharaman as the Minister of Finance, Amit Shah as the Minister of Home Affairs, Raj Nath Singh as the Minister of Defence and S Jaishankar as the Minister of External Affairs.

Index Returns
Index Weekly open Weekly close Change
BSE Sensex 39,434.72 39,714.20 0.71%
Nifty 11,844.10 11,922.80 0.66%
S&P BSE SmallCap 14,699.56 14,867.04 1.14%
S&P BSE MidCap 14,945.24 15,096.18 1.01%

Source- BSE/NSE

 

Top 5 best performing funds
Name Week 3Y Category
ABSL DIGITAL INDIA 3.3% 13.8% Sectoral
TATA DIGITAL INDIA 3.3% 15.4% Sectoral
HSBC MGD SOLUTIONS  2.8% 11.8% Fund of Funds
SBI TECHNOLOGY OPP 2.8% 13.5% Sectoral
ICICI PRU TECHNOLOGY FUND 2.7% 13.2% Sectoral

Source – Kuvera.in

 

Top 5 worst performing funds
Name Week 3Y Category
DSP WORLD ENERGY -4.5% 2.2% Fund of Funds
DSP WORLD AGRI -2.9% 5.3% Fund of Funds
DSP US FLEXIBLE EQUITY -2.5% 13.1% Fund of Funds
INVESCO PAN EURO -2.5% 4.4% Fund of Funds
DHFL GLB EQUITY OPP -2.3% 12.0% Fund of Funds

Source – Kuvera.in

 

Top 5 best performing ELSS funds
Name Week 3Y Category
AXIS LONG TERM EQUITY 2.3% 16.3% ELSS
BNP PARIBAS LONG TERM EQUITY 1.9% 11.9% ELSS
JM TAX GAIN 1.6% 18.3% ELSS
KOTAK TAX SAVER 1.5% 17.5% ELSS
BOI AXA TAX ADVANTAGE 1.4% 14.7% ELSS

Source – Kuvera.in

 

What investors bought

We saw the most inflows in these 5 Funds –

Name 1Y 3Y Category
HDFC SMALL CAP -2.9% 20.1% Small Cap
UTI NIFTY INDEX 14.0% 16.4% Index Fund
MIRAE ASSET LARGE CAP 14.6% 19.2% Large Cap
PARAG PARIKH LTE 6.5% 14.7% Multi-Cap
UTI NIFTY NEXT 50 NA NA Index Fund

Source – Kuvera.in

 

What investors sold

We saw the most outflows in these 5 Funds –

Name 1Y 3Y Category
HDFC MID CAP OPP -1.8% 14.7% Mid Cap
SBI BLUE CHIP 8.5% 13.7% Large Cap
ICICI PRU VALUE DISC 4.5% 11.2% Value Fund
TATA EQUITY P/E  1.2% 18.9% Value Fund
KOTAK STD MULTICAP 14.2% 19.1% Multi Cap

Source – Kuvera.in

 

Movers & Shakers

1/ Pankaj Jain, Fund Manager – Principal Mutual Fund, has resigned from the services of Principal Asset Management Private Limited with effect from 31 May 2019.

2/ IDFC Mutual Fund has announced the appointment of Rucha Amdekar as Key Personnel in Fixed Income Team and Vinod Rai as an Independent Director of IDFC Asset Management Company Limited, with effect from 30 May 2019.

Quote of the week:

One of the frustrating things for people who miss the first rally in a bull market is that they wait for the big correction, and it never comes. The market just keeps climbing and climbing.

: Martin Zweig

 

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