10 mutual fund myths busted, AAUM Growth and more!

Our co-founder and COO, Neelabh Sanyal was on Zee Business’s Mutual Fund Helpline this week to discuss common myths about investing in mutual funds. If you missed that you can watch it below.

 

The Average Assets Under Management (AAUM) of the Mutual Fund industry stood at 26.7 lakh crore in the October-December quarter of 2019, a 13.4% increase from the same period in 2018. As per the latest AMFI data, Mirae Asset Mutual Fund witnessed the highest percentage growth in AAUM, with an increase of 87% in Asset base from 21.03 thousand crores in 2018 to 39.34 thousand crores in 2019.

 

The following Mutual Fund houses witnessed the highest (absolute) growth in AAUM (in Rs 1000 crores). 

Mutual Fund AAUM Dec 2018 AAUM Dec 2019 Absolute Change
SBI Mutual Fund 264.35 352.63 88.28
IPru Mutual Fund 307.74 361.51 53.77
HDFC Mutual Fund 334.96 382.52 47.55
Axis Mutual Fund 81.62 122.87 41.24
IDFC Mutual Fund 64.58 104.63 40.05

Source: AMFI

 

In a recent Twitter poll on the preferred asset class for 2020, equity was the forerunner with 73% votes. In a follow-up poll, Index funds took the top spot within equity at 36% votes. We have been proponents of index first approach to portfolio construction since the start. You can find index funds on Kuvera here.

 

Tata Mutual Fund has launched the NFO for Tata Quant Fund, an open-ended equity scheme following a quant-based investing theme. The scheme will be managed by Sailesh Jain. The new issue will be open for subscription till 17 January 2020.

 

Index Returns

Index 1W 1Y 3Y
NIFTY 50 -0.2% 14.6% 14.3%
NIFTY NEXT 50 0.0% 2.9% 9.4%
S&P BSE SENSEX -0.3% 16.7% 15.9%
S&P BSE SmallCap 3.3% -4.0% 4.3%
S&P BSE MidCap 1.2% 0.3% 7.4%
NASDAQ 100 0.3% 42.9% 21.4%
S&P 500 -0.2% 32.1% 12.7%

Source: BSE / NSE

Top 5 best performing funds

Name 1W 1Y 3Y
DSP World Gold 7.5% 35.8% 5.6%
Kotak World Gold 6.0% 41.9% 7.6%
IDFC Infrastructure 4.4% 0.6% 5.3%
DSP World Mining 4.4% 25.5% 11.5%
DSP Small Cap 3.9% 4.8% 3.2%

Source: Kuvera.in

Top 5 worst performing funds

Name 1W 1Y 3Y
SBI Banking & Financial Services -1.1% 23.1% 24.5%
Taurus Banking & Financial Services -1.1% 26.7% 22.9%
JM Equity Hybrid -0.9% -6.6% 4.1%
IDBI Banking & Financial Services -0.9% 18.3% NA
Axis Bluechip -0.9% 20.9% 21.7%

Source: Kuvera.in

What Investors Bought

We saw the most inflows in these 5 Funds –

Name 1W 1Y 3Y
Parag Parikh Long Term Equity 0.4% 16.6% 14.9%
Axis Bluechip -0.9% 20.9% 21.7%
Axis Long Term Equity -0.4% 17.7% 18.6%
Mirae Asset Emerging Bluechip 1.2% 19.3% 18.3%
Mirae Asset Tax Saver 0.9% 19.6% 19.9%

Source: Kuvera.in

What Investors Sold

We saw the most outflows in these 5 Funds –

Name 1W 1Y 3Y
Aditya Birla Sun Life Equity 0.1% 12.3% 12.5%
DSP Equal Nifty 50 0.2% 6.8% NA
Nippon India Small Cap 2.7% 1.2% 11.1%
IDFC Arbitrage 0.3% 7.0% 6.8%
Principal Emerging Bluechip 0.4% 10.4% 13.2%

Source: Kuvera.in

Most Watchlisted Fund

Top 5 funds added to watchlist by Kuverians

Name 1W 1Y 3Y
Axis Bluechip -0.9% 20.9% 21.7%
SBI Banking & Financial Services -1.1% 23.1% 24.5%
Mirae Asset Emerging Bluechip 1.2% 19.3% 18.3%
Tata Banking & Financial Services -0.7% 29.5% 23.8%
Axis Focused 25 -0.7% 18.5% 20.1%

Source: Kuvera.in

Top ELSS funds

Name 1W 1Y 3Y
Nippon India Tax Saver 1.8% 5.8% 6.5%
SBI Magnum Tax Gain Scheme 1.2% 7.6% 9.3%
PGIM India Long Term Equity 1.0% 12.5% 14.2%
IDFC Tax Advantage 0.9% 6.3% 13.5%
Mirae Asset Tax Saver 0.9% 19.6% 19.9%

Source: Kuvera.in

 

Movers & Shakers

1/ Union Mutual Fund has announced that Deep Mehta, Co-Fund Manager of Union Liquid Fund and a Key Personnel of Union Asset Management Company Private Limited has resigned from the AMC. Devesh Thacker will continue as the fund manager of the scheme.

2/ IDFC Mutual Fund has announced that Nishita Doshi been appointed as a Fund Manager and Key Personnel of the company.

3/ Mirae Asset Mutual Fund has announced that Neelesh Surana ceases to be the fund manager of Mirae Asset Large Cap Fund. Gaurav Misra and Harshad Borawake will continue as fund managers of the scheme.

 

Quote of the week:

 

 

Go a little easier on yourself, and in so doing, be prepared to make and do things that might seem silly at first. Just keep moving: don’t ruminate and stare at the wall. Don’t just play with your phone: go out and produce something.

: Merlin Mann

 

 

Interested in how we think about the markets?

Read more: Zen And The Art Of Investing

 

Watch/hear on YoutTube:

 

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2 Responses

  • Sushmita Ghosh

    January 23, 2020 AT 13:25

    Hello,
    very nice article.
    There are a number of myths about mutual fund investment due to which many of the people do not feel it safe to invest in them.
    Here are some of such myths busted:
    1. Mutual funds can be started with a small amount and can be invested in at any time.
    2. You don’t need a Demat account for investing in mutual funds. Mutual fund investment can be done with just KYC.
    3. Don’t look for top-performing funds for finding success, as it is a lazy approach.
    4. One year’s return is again a myth. You should have an eye on the consistency of the mutual fund’s performance.
    5. Similarly, selecting funds just based on NAV is also a myth.
    6. In a SIP, you can invest Rs. 500 to Rs. 50,000 per month, hence, can be invested in by anyone.
    7. You won’t be fined if you miss a payment on your SIP.
    8. You can withdraw your amount by selling units as per your purchase date after the lock-in period.
    9. ELSS is not just for tax saving, but also for wealth creation.
    10. One big myth is that the lump sum amount cannot be an investment in a scheme where you have a SIP. But you can actually invest in both the ways in the same fund with different folios.


    • Gaurav Rastogi

      January 26, 2020 AT 00:15

      Thanks for the list