All that you need to know about Mutual Funds this week
Gold funds outperformed this week, with two of the five top performing funds this week from this sector. Gold funds delivered on their diversification benefit during the global financial crisis of 2008-2009. Since then the returns have been largely flat.
On June 4th, DHFL missed its deadline to make a payment of Rs 1150 crore to its bondholders. Mutual fund houses which had exposure to these papers marked down their investment in DHFL securities by 75%, with some AMCs (like UTI) making a full write-off. Most Fund houses have restricted fresh investment in schemes that were most impacted by the write-down, while others introducing exit load conditions where there were none earlier (E.g.: UTI) to safeguard investor interests.
In the first formal use of SEBI’s side-pocketing provision, Tata Mutual Fund has announced the launch of segregated portfolios in a few schemes affected by DHFL default. The fund house intends to start side pocketing in 3 of its schemes (Tata Corporate Bond Fund, Tata Medium Term Fund and Tata Treasury Advantage) from 14th June onward.
In line with market expectations, the RBI reduced the repo rate by 25 basis points from 6% to 5.75%. The RBI also decided to change the monetary policy stance from neutral to accommodative.
Index Returns
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 39,714.20 | 39,615.90 | -0.25% |
| Nifty | 11,922.80 | 11,870.65 | -0.44% |
| S&P BSE SmallCap | 14,867.04 | 14,657.09 | -1.41% |
| S&P BSE MidCap | 15,096.18 | 14,906.38 | -1.26% |
Source- BSE/NSE
Top 5 best performing funds
| Name | Week | 3Y | Category |
| KOTAK WORLD GOLD | 9.8% | -7.9% | Fund of Funds |
| DSP WORLD GOLD | 8.9% | -4.5% | Fund of Funds |
| INVESCO GLOBAL EQ | 3.3% | 5.7% | Fund of Funds |
| INVESCO EUROPEAN EQ | 3.0% | 3.8% | Fund of Funds |
| HSBC BRAZIL | 2.4% | 17.1% | Fund of Funds |
Source – Kuvera.in
Top 5 worst performing funds
| Name | Week | 3Y | Category |
| DHFL MEDIUM TERM | -52.9% | -18.4% | Medium Duration |
| DHFL FLOATING RATE | -48.3% | -13.7% | Floater Fund |
| TATA CORPORATE BOND | -29.5% | -6.8% | Corporate Bond |
| BARODA TREASURY ADV | -16.9% | 0.9% | Low Duration Fund |
| PRINCIPAL DURATION | -16.4% | 0.9% | Low Duration Fund |
Source – Kuvera.in
Top 5 best performing ELSS funds
| Name | Week | 3Y | Category |
| MOTILAL OSWAL LONG TERM EQUITY | 0.0% | 16.3% | ELSS |
| LIC MF TAX | -0.1% | 14.0% | ELSS |
| MIRAE ASSET TAX SAVER | -0.2% | 12.8% | ELSS |
| BNP PARIBAS LONG TERM EQUITY | -0.2% | 11.0% | ELSS |
| AXIS LONG TERM EQUITY | -0.3% | 15.2% | ELSS |
Source – Kuvera.in
What investors bought
We saw the most inflows in these 5 Funds –
| Name | 1Y | 3Y | Category |
| UTI NIFTY INDEX | 12.0% | 14.2% | Index Fund |
| HDFC SMALL CAP | -1.6% | 18.8% | Small Cap |
| MIRAE ASSET LARGE CAP | 12.6% | 17.0% | Large Cap |
| KOTAK STD MULTICAP | 11.9% | 16.9% | Multi Cap |
| PARAG PARIKH LTE | 5.8% | 13.8% | Multi Cap |
Source – Kuvera.in
What investors sold
We saw the most outflows in these 5 Funds –
| Name | 1Y | 3Y | Category |
| HDFC HYBRID EQUITY | 8.3% | 11.2% | Aggressive Hybrid |
| SBI EQUITY HYBRID | 10.4% | 12.9% | Aggressive Hybrid |
| TATA INDIA CONSUMER | -5.1% | 20.4% | Sectoral |
| ICICI PRU EQUITY & DEBT | 9.3% | 14.9% | Aggressive Hybrid |
| MOSL MULTICAP 35 | 2.1% | 15.1% | Multi Cap |
Source – Kuvera.in
Movers & Shakers
1/ LIC Mutual Fund has announced that Farzana Sayyed will cease to be a Key Personnel of the AMC, following her resignation from the post of Fixed Income Dealer.
Quote of the week:
Have patience. All things are difficult before they become easy.
: Saadi
Start investing through a platform that brings goal planning and investing to your fingertips. Visit kuvera.in to discover Direct Plans and start investing today.
#MutualFundSahiHai, #KuveraSabseSahiHai!
