All that you need to know about Mutual Funds this week
We released the first chapter of our serialized book Zen And the Art of Investing – Simple stories to understand markets and our reaction to them!
Monthly SIP investments grew to an all-time high of Rs 8,064 crore in January, even as net inflows into equity schemes fell for the third consecutive month. AMFI data showed net inflows into equity schemes fell 6.7% to a 24-month low of Rs 6,158 crore in January.
Tax saving ELSS investing is in full swing. Two of the top 5 funds where we saw the most inflows this week are ELSS funds.
The choice of index funds available to Indian investors continues to increase. DSP will be launching NFOs of DSP Nifty 50 Index Fund and DSP Nifty Next 50 Index Fund. These funds seek to replicate the performance of the Nifty and Nifty Next 50 indices respectively. The NFOs will be open for subscription from 11/Feb to 15/Feb.
Deloitte India expects that digitally invested AUM for individual investments in mutual funds will cross Rs 1 lakh crore by 2021. The report expects the overall retail AUM in mutual funds to grow by 37% during the same time.
RBI reduced the repo rate by 25 basis points from 6.5% to 6.25%. RBI also changed their monetary policy stance from ‘calibrated tightening’ to ‘neutral’.
Index Returns:
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 36,469.43 | 36,546.48 | 0.21% |
| Nifty | 10,893.65 | 10,943.60 | 0.46% |
| S&P BSE SmallCap | 13,950.45 | 13,656.75 | -2.11% |
| S&P BSE MidCap | 14,641.38 | 14,328.81 | -2.13% |
Source- BSE/NSE
Top 5 best performing funds:
| Name | Week | 3Y | Category |
| EDELWEISS GREATER CHINA EQUITY OFF SHORE | 4.0% | 16.2% | Fund of Funds |
| FRANKLIN INDIA TECHNOLOGY | 2.3% | 13.6% | Sectoral |
| SUNDARAM GLOBAL ADVANTAGE | 2.2% | 13.6% | Fund of Funds |
| DSP US FLEXIBLE EQUITY | 2.0% | 15.5% | Fund of Funds |
| HSBC ASIA PACIFIC YIELD | 2.0% | 15.9% | Fund of Funds |
Source – Kuvera.in
Top 5 worst performing funds:
| Name | Week | 3Y | Category |
| HSBC BRAZIL | -4.4% | 35.4% | Fund of Funds |
| HSBC INFRASTRUCTURE EQUITY | -3.6% | 1.1% | Sectoral |
| RELIANCE VISION | -3.1% | 8.7% | Large & Mid Cap |
| ABSL SMALL CAP | -2.8% | 11.8% | Small Cap |
| HSBC SMALL CAP | -2.7% | 9.2% | Small Cap |
Source – Kuvera.in
Top 5 best performing ELSS funds:
| Name | Week | 3Y | Category |
| AXIS LONG TERM EQUITY | 2.1% | 2.1% | ELSS |
| MOSL LONG TERM EQUITY | 0.7% | 17.4% | ELSS |
| TATA INDIA TAX SAVING | 0.7% | 15.6% | ELSS |
| JM TAX GAIN | 0.6% | 16.4% | ELSS |
| EDELWEISS LONG TERM EQUITY | 0.4% | 11.4% | ELSS |
Source – Kuvera.in
Top 5 worst performing ELSS funds:
| Name | Week | 3Y | Category |
| RELIANCE TAX SAVER | -2.5% | 9.3% | ELSS |
| HDFC TAX SAVER | -1.3% | 14.4% | ELSS |
| L&T TAX ADVANTAGE | -0.9% | 14.6% | ELSS |
| SBI MAGNUM TAX GAIN | -0.9% | 11.4% | ELSS |
| ICICI PRU LONG TERM EQUITY | -0.8% | 12.5% | ELSS |
Source – Kuvera.in
What investors bought:
We saw the most inflows in these 5 schemes –
| Name | 1Y | 3Y | Category |
| MIRAE ASSET INDIA EQUITY | 4.8% | 18.6% | Multi Cap |
| ABSL TAX RELIEF96 | -0.1% | 15.3% | ELSS |
| L&T EMERGING BUSINESSES | -14.2% | 18.7% | Small Cap |
| AXIS LONG TERM EQUITY | 6.8% | 13.9% | ELSS |
| HDFC SMALL CAP | -6.6% | 19.8% | Small 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 |
| KOTAK STANDARD MULTICAP | 3.1% | 17.3% | Multi Cap |
| SBI LARGE AND MIDCAP | -1.7% | 13.3% | Large & Mid Cap |
| HDFC EQUITY | -0.3% | 18.0% | Multi Cap |
| HDFC MID CAP OPP | -8.3% | 14.0% | Mid Cap |
| IDFC MULTI CAP | -4.6% | 9.9% | Multi Cap |
Source – Kuvera.in
Movers and shakers at fund house:
1/ Reliance Mutual Fund has appointed Sushil Budhia as the Senior Fund Manager for Debt Investments.
2/ Indiabulls Mutual Fund has announced the appointment of Vikrant Mehta as the Joint Head of Fixed Income.
Quote of the week:
Tiger got to hunt, bird got to fly;
Man got to sit and wonder ‘why, why, why?’
Tiger got to sleep, bird got to land;
Man got to tell himself he understand.:
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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