All that you need to know about Mutual Funds this week
The Indian Mutual Fund industry witnessed net inflow of Rs 1,42,359 crore in November, more than a 300 per cent increase from a net inflow of Rs 35,529 crore in October. The Indian mutual fund industry added 1.5 lakh new unique investors, as the Industry AUM touched Rs 24.03 lakh crore at the end of November.
Liquid funds are set to become safer since SEBI has permitted side-pocketing in Mutual Funds. This will allows fund houses to isolate the risky or “bad” assets from the rest of the mutual fund holdings and cap redemption for the “bad” assets while maintaining liquidity in the rest of the holdings. The market regulator intends to have additional safeguards to ensure that this provision is not misused by the fund houses.
In other positive news, India’s economic growth has been “very solid” as per IMF Chief Economist- Maurice Obstfeld. Praising India’s fundamental economic reforms including the GST Act, the Insolvency and Bankruptcy code, Obstfeld lauded the government’s efforts for increasing financial inclusion.
The India Wealth Report for the Financial Year 2018 shows that the total Individual wealth has grown 14.02 per cent, with the individual wealth in financial assets growing by 17.42 per cent, while that of physical assets grew by 9.24 per cent. A heartening observation is that financial assets constitute 60 per cent of the total individual wealth, and are expected to continue growing in the coming years.
Source: Karvy India Wealth Report 2018
Index Returns:
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 35,673.25 | 35,962.93 | 0.81% |
| Nifty | 10,693.70 | 10,805.45 | 1.05% |
| S&P BSE SmallCap | 14,104.65 | 14,501.76 | 2.82% |
| S&P BSE MidCap | 14,717.49 | 15,192.84 | 3.23% |
Source- BSE/NSE
Top 5 best performing funds:
| Name | Week | 3Y | Category |
| KOTAK WORLD GOLD | 5.8% | 7.4% | Fund of Funds |
| MIRAE ASSET GREAT CONSUMER | 4.2% | 17.6% | Sectoral |
| DSP WORLD MINING | 4.1% | 20.7% | Fund of Funds |
| SUNDARAM RURAL & CONSUMPTION | 4.1% | 17.4% | Sectoral |
| DSP WORLD GOLD | 4.0% | 9,2% | Fund of Funds |
Source – Kuvera.in
Top 5 worst performing funds:
| Name | Week | 3Y | Category |
| PRINCIPAL GLOBAL OPPORTUNITIES | -1.4% | 10.2% | Fund of Funds |
| KOTAK US EQUITY | -1.3% | 11.6% | Fund of Funds |
| ICICI PRUDENTIAL US BLUECHIP | -1.1% | 14.9% | Sectoral |
| ABSL GLOBAL COMMODITIES | -0.8% | 7.2% | Fund of Funds |
| FRANKLIN FEEDER US OPPOR | -0.6% | 12.3% | Fund of Funds |
Source – Kuvera.in
What investors bought:
We saw the most inflows in these 5 schemes –
| Name | 1Y | 3Y | Category |
| MIRAE ASSET EMERGING BLUECHIP | -0.7% | 18.7% | Large & Mid Cap |
| MIRAE ASSET INDIA EQUITY | 3.6% | 16.4% | Multi Cap |
| HDFC SMALL CAP | -1.6% | 18.7% | Small Cap |
| L&T EMERGING BUSINESSES | -9.8% | 18.4% | Small Cap |
| PARAG PARIKH LONG TERM EQUITY | 2.6% | 11.8% | 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 |
| ADITYA BIRLA SUN LIFE EQUITY | -0.1% | 16.2% | Multi Cap |
| PRINCIPAL HYBRID EQUITY | 1.6% | 16.1% | Hybrid |
| ICICI PRUDENTIAL VALUE DISCOVERY | -0.4% | 9.3% | Value |
| ABSL FRONTLINE EQUITY | 0.9% | 13.0% | Large Cap |
| PRINCIPAL EMERGING BLUECHIP | -6.3% | 16.7% | Large & Mid Cap. |
Source – Kuvera.in
Movers and shakers at fund house:
1/ Motilal Oswal Mutual Fund has launched Motilal Oswal Liquid Fund. This open-ended scheme will be managed by Abhiroop Mukherjee. This fund offer comes shortly after the fund house suspended its Low Duration scheme, Motilal Oswal Ultra Short Term Fund.
Quote of the week:
I hope that in this year to come, you make mistakes.
Because if you are making mistakes, then you are making new things, trying new things, learning, living, pushing yourself, changing yourself, changing your world. You’re doing things you’ve never done before, and more importantly, you’re Doing Something.
So that’s my wish for you, and all of us, and my wish for myself. Make New Mistakes. Make glorious, amazing mistakes. Make mistakes nobody’s ever made before. Don’t freeze, don’t stop, don’t worry that it isn’t good enough, or it isn’t perfect, whatever it is: art, or love, or work or family or life.
Whatever it is you’re scared of doing, Do it.
Make your mistakes, next year and forever.
― Neil Gaiman
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.
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