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:
- UTI Mutual Fund (Rs 2,144 crore)
- Reliance AMC (1,488 crore)
- Axis AMC (Rs 771 crore)
- Franklin Templeton (Rs 571 crore)
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.
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