Budget2020, FT segregated portfolio, IDFC NFO and more!

We have launched the SaveSmart feature on Kuvera. This turbo-charged deposit account optimizes returns and provides instant withdrawal. Investment in SaveSmart is intelligently allocated amongst a basket of liquid funds from top fund houses – Nippon, Axis, PGIM, ICICI Prudential.

 

#Budget2020 had little for everyone. Some important ones for taxpayer and investors are –

1/ Lower tax brackets for individuals who chose to not take any deductions. Specifically –

0% tax rate for income below Rs 5 lakh

10% for 5 – 7.5 lakh

15% for 7.5 – 10 lakh

20% for 10 – 12.5 lakh

25% for 12.5 – 15 lakh

30% for > 15 lakh

2/ Deposit insurance cover has been increased to Rs 5 lakh from Rs 1 lakh per depositor to increase trust in banks.

3/  Abolishes Dividend Distribution Tax. Dividend to be taxed only at the hand of the investor at their applicable rates.

 

Franklin Mutual Fund has announced that the fund house has created segregated portfolio(s) in select schemes, following the ratings downgrade of debt instruments of Vodafone Idea Limited (VIL) to below investment grade. The fund house had earlier taken a 100% markdown on its exposure to debt securities of VIL on January 16. The media statement from the AMC states that this decision has been taken “in order to protect value for existing unitholders in these schemes.” The schemes approved for segregation include:

The AMC communication states that the valuation adjustment “only reflects the realizable price of the relevant securities on the date of valuation and does not indicate any reduction or write-off of the amount repayable by VIL.” Investors in the affected schemes as on January 24 will receive separate units in the segregated portfolios. The AMC has also revised the maximum investment limit in these schemes. 

 

Index Returns

Index 1W 1Y 3Y
NIFTY 50 -2.3% 10.5% 11.8%
NIFTY NEXT 50 -2.2% 6.6% 6.7%
S&P BSE SENSEX -2.1% 12.3% 13.8%
S&P BSE SmallCap -0.3% 17.2% 4.3%
S&P BSE MidCap -2.3% 5.1% 6.3%
NASDAQ 100 -1.6% 30.1% 20.7%
S&P 500 -2.0% 9.6% 9.9%

Source: BSE / NSE

 

Top 5 best performing funds

Name 1W 1Y 3Y
Aditya Birla Sun Life Gold 3.1% 25.4% 11.1%
SBI Gold  1.8% 23.0% 11.2%
Invesco India Gold  1.8% 20.8% 10.8%
Kotak Gold 1.6% 23.7% 12.2%
Axis Gold 1.5% 23.7% 11.3%

Source: Kuvera.in

 

Top 5 worst performing funds

Name 1W 1Y 3Y
HSBC Brazil Growth Direct Plan -5.2% -2.8% 8.6%
HSBC Global Emerging Markets -4.6% 5.1% 8.8%
Edelweiss Greater China Equity Off Shore -4.4% 27.8% 17.4%
Franklin Asian Equity Growth Direct Plan -4.4% 14.4% 11.8%
DSP Natural Resources & New Energy -4.2% 3.0% 3.5%

Source: Kuvera.in

 

What Investors Bought

We saw the most inflows in these 5 Funds –

Name 1W 1Y 3Y
Axis Bluechip -0.4% 21.9% 20.2%
Parag Parikh Long Term Equity -0.5% 16.7% 14.4%
Axis Small Cap  2.2% 35% 17.5%
ICICI Prudential US Bluechip Equity -1.1% 23.2% 17.5%
UTI Nifty Index -2.3%% 11.7% 13.0%

Source: Kuvera.in

 

What Investors Sold

We saw the most outflows in these 5 Funds –

Name 1W 1Y 3Y
Kotak Equity Arbitrage 0.1% 6.6% 6.7%
Principal Emerging Bluechip -0.3% 16.9% 12.3%
L&T Emerging Businesses -2.2% 1.3% 9.0%
Franklin India Prima -1.7% 10.2% 9.3%
Nippon India Arbitrage 0.2% 6.9% 6.9%

Source: Kuvera.in

 

Most Watchlisted Fund

Top 5 funds added to watchlist by Kuverians

Name 1W 1Y 3Y
Axis Bluechip -0.4% 21.9% 20.2%
SBI Banking & Financial Services -0.8% 25.1% 22.0%
Mirae Asset Emerging Bluechip -2.3% 18.9% 16.2%
Axis Focused 25 Growth Direct Plan 0.4% 26.3% 19.0%
Tata Banking & Financial Services -1.0% 28.5% 20.2%

Source: Kuvera.in

 

Top ELSS funds

Name 1W 1Y 3Y
BOI AXA Tax Advantage 0.4% 25.2% 15.1%
Canara Robeco Equity Tax Saver 0.2% 14.3% 14.4%
Axis Long Term Equity 0% 24.9% 17.6%
Motilal Oswal Long Term Equity -0.3% 23.5% 14.1%
Parag Parikh Tax Saver -0.7% NA NA

Source: Kuvera.in

 

Movers and Shakers:

1/ Kotak Mahindra Mutual Fund has approved the merger of Kotak World Gold Fund (Merging Scheme) and Kotak US Equity Fund (Merging Scheme) into Kotak Global Emerging Market Fund (Surviving Scheme) with effect from 26 February. Unit holders who do not wish to retain their holdings in the Merging schemes can redeem their units without any exit load between January 27 and February 25, 2020.

2/ JM Financial Mutual Fund has announced that Satish Ramanathan has been appointed as Chief Investment Officer – Equity and Key Personnel on the Board of JM Financial Asset Management Limited, with effect from January 30.

3/ HDFC Mutual Fund has announced that Supriya Sapre has been appointed as the Chief Compliance Officer and Key Personnel of HDFC Asset Management Company Limited.

4/ Principal Mutual Fund has announced that Pedro Borda has been appointed as an Associate Director on the Board of Principal Asset Management Private Limited.

 

Quote of the week:

 

Don’t tell me what you value, show me your budget, and I’ll tell you what you value.

:Joe Biden

 

Interested in how we think about the markets?

Read more: Zen And The Art Of Investing

 

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