All that you need to know about Mutual Funds this week
The market touched new highs last week following a landslide victory of the National Democratic Alliance (NDA). The Sensex and Nifty briefly crossed the 40,000 and 12,000 marks respectively on Thursday, 23 May 2019. Sensex rose 3.96% during the week to close at 39,434.72 while Nifty went up by 3.83% to settle at 11,844.10.
Infrastructure funds outperformed this week, with all five of the top performing funds this week from this sector.
The long term performance of NIFTY Infrastructure Index has been poor. Since Aug 2010, the Index has been mostly flat versus a 120% gain in NIFTY 50.
The Securities and Exchange Board of India (SEBI) has permitted mutual funds to invest in commodity derivatives. The market regulator has allowed mutual funds to participate in all exchange-traded commodities derivatives (ETCDs) except the ‘sensitive commodities’. (Ex: agriculture)
Reliance Capital has decided to exit the mutual fund space by selling its 42.88% stake in Reliance Nippon Life Asset Management Ltd. (RNAM). Nippon Life would become the sole promoter of RNAM following its increase in stake in RNAM to 75%. Nippon Life currently holds 42.88% stake in RNAM. As per the press release by Reliance Capital, the estimated sale proceeds of Rs 6,000 crores would be utilised in its entirety by Reliance Capital to reduce the outstanding debt of the company by 33%.
Index Returns
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 37,930.77 | 39,434.72 | 3.96% |
| Nifty | 11,407.15 | 11,844.10 | 3.83% |
| S&P BSE SmallCap | 13,887.14 | 14,699.56 | 5.85% |
| S&P BSE MidCap | 14,308.36 | 14,945.24 | 4.45% |
Source- BSE/NSE
Top 5 best performing funds
| Name | Week | 3Y | Category |
| HSBC INFRASTRUCTURE FUND | 9.9% | 5.2% | Sectoral |
| HDFC INFRASTRUCTURE FUND | 9.8% | 7.6% | Sectoral |
| IDFC INFRASTRUCTURE FUND | 9.1% | 16.0% | Sectoral |
| SUNDARAM INFRA | 9.1% | 13.1% | Sectoral |
| TATA INFRASTRUCTURE FUND | 9.1% | 12.1% | Sectoral |
Source – Kuvera.in
Top 5 worst performing funds
| Name | Week | 3Y | Category |
| EDELWEISS GR CHINA | -5.1% | 15.3% | Fund of Funds |
| INVESCO EUROPEAN EQ | -3.0% | 4.9% | Fund of Funds |
| ABSL EMERGING OPP | -2.9% | 4.6% | Fund of Funds |
| INVESCO GLOBAL EQUITY | -2.9% | 7.0% | Fund of Funds |
| ABSL INTERNATIONAL EQ | -2.8% | 10.7% | Sectoral |
Source – Kuvera.in
Top 5 best performing ELSS funds
| Name | Week | 3Y | Category |
| RELIANCE TAX SAVER | 6.6% | 10.1% | ELSS |
| CANARA EQUITY TAX SAVER | 5.8% | 16.0% | ELSS |
| HSBC TAX SAVER | 5.7% | 12.8% | ELSS |
| PRINCIPAL TAX SAVING | 5.6% | 16.4% | ELSS |
| SBI MAGNUM TAX GAIN | 5.5% | 11.2% | ELSS |
Source – Kuvera.in
What investors bought
We saw the most inflows in these 5 Funds –
| Name | 1Y | 3Y | Category |
| MIRAE ASSET LARGE CAP | 12.9% | 18.4% | Large Cap |
| HDFC SMALL CAP | -5.1% | 19.1% | Small Cap |
| UTI NIFTY INDEX | 13.1% | 15.9% | Index Fund |
| KOTAK STD MULTICAP | 12.5% | 18.3% | Multi Cap |
| L&T MIDCAP | -6.8% | 15.7% | Mid Cap |
Source – Kuvera.in
What investors sold
We saw the most outflows in these 5 Funds –
| Name | 1Y | 3Y | Category |
| INVESCO INDIA OPP | 5.2% | 16.8% | Large & Mid Cap |
| HDFC CAP BUILDER VAL | 3.4% | 15.9% | Value Fund |
| EDELWEISS LARGE & MID | 4.2% | 14.1% | Large & Mid Cap |
| DHFL HYBRID EQ | 6.3% | 9.8% | Aggressive Hybrid |
| INVESCO INDIA CONTRA | 4.0% | 18.0% | Contra Fund |
Source – Kuvera.in
Movers & Shakers
1/ Essel Mutual Fund has announced that Viral Berawala has ceased to be the Chief Investment Officer and Key Personnel of the AMC. Saravana Kumar has taken over the responsibilities of the post with effect from 17th May.
2/ Motilal Oswal Mutual Fund has announced that Gautam Sinha Roy has resigned from his role as Fund Manager and Key Personnel of the firm.
Quote of the week:
The journey is never ending. There’s always gonna be growth, improvement, adversity; you just gotta take it all in and do what’s right, continue to grow, continue to live in the moment.
: Antonio Brown
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