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:
- DHFL Pramerica Medium Term Fund (Merging Scheme) will be merged with DHFL Pramerica Credit Risk Fund (Surviving Scheme)
- DHFL Pramerica Floating Rate Fund (Merging Scheme) will be merged with DHFL Pramerica Ultra Short Term Fund (Surviving Scheme)
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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