All that you need to know about Mutual Funds this week
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Canadian insurer Manulife is entering the Indian mutual fund industry through a strategic tie-up with Mahindra & Mahindra Finance. The global financial services group would be picking up a 49% stake in Mahindra AMC for $35 million.
Amidst global uncertainty, Gold had another good week with two of the five top performing funds this week from this sector. As we have said earlier, gold funds delivered on their diversification benefit during the global financial crisis of 2008-2009. Since then the returns have been largely flat.
India has imposed higher tariffs on 28 US products in retaliation to America’s withdrawal of preferential access for Indian products. This move comes just ahead of the meeting between US President Donald Trump and Indian Prime Minister Narendra Modi at the sidelines of the G20 meeting.
We had a slew of AMC announcements this week:
1/ HDFC AMC announced a liquidity arrangement for investors in certain fixed maturity plan (FMP) schemes. The AMC is making a provision of up to ₹500 crore to provide liquidity to the unitholders of FMPs that were affected by exposure to the non-convertible debentures of Essel group companies.
2/ Essel Mutual Fund has announced the winding up of Essel Short Term Fund, with immediate effect, following its inability to maintain the minimum AUM criteria of Rs 20 crore at the end of its half-yearly rolling period.
3/ Edelweiss Mutual Fund has approved the change in fundamental attributes of two schemes:
- Edelweiss Equity Savings Fund will henceforth include the provision to write call options.
- Edelweiss Multi-Asset Allocation Fund will be renamed to Edelweiss Aggressive Hybrid Fund. The scheme will change from a Multi-Asset Fund to an Aggressive Hybrid Fund.
Unitholders who do not wish to retain their holdings in the schemes can redeem their units without any exit load between 20th June and 19th July 2019.
4/ Motilal Oswal Mutual Fund has announced that no exit load would be charged for switches made from Regular to Direct plan of the same scheme for all schemes of the AMC.
Index Returns
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 39,452.07 | 39,194.49 | -0.65% |
| Nifty | 11,823.30 | 11,724.10 | -0.84% |
| S&P BSE SmallCap | 14,365.93 | 14,084.24 | -1.96% |
| S&P BSE MidCap | 14,720.99 | 14,624.59 | -0.65% |
Source- BSE/NSE
Top 5 best performing funds
| Name | Week | 3Y | Category |
| KOTAK WORLD GOLD | 7.1% | -7.2% | Fund of Funds |
| EDELWEISS GR CHINA | 6.3% | 15.3% | Fund of Funds |
| DSP WORLD GOLD | 5.1% | -4.6% | Fund of Funds |
| FRANKLIN ASIAN EQ | 4.6% | 12.1% | Sectoral |
| EDELWEISS EM MAK | 4.5% | 14.2% | Fund of Funds |
Source – Kuvera.in
Top 5 worst performing funds
| Name | Week | 3Y | Category |
| TATA CORPORATE | -15.0% | -11.8% | Corporate Bond |
| TATA MEDIUM TERM | -4.9% | 1.8% | Medium Duration |
| HSBC SMALL CAP | -2.1% | 6.4% | Small Cap |
| UTI MNC | -2.1% | 9.3% | Sectoral |
| EDELWEISS SMALL CAP | -2.1% | NA | Small Cap |
Source – Kuvera.in
What investors bought
We saw the most inflows in these 5 Funds –
| Name | 1Y | 3Y | Category |
| AXIS BLUECHIP | 12.7% | 17.0% | Large Cap |
| KOTAK STD MULTICAP | 11.0% | 16.0% | Multi Cap |
| MIRAE ASSET LARGE CAP | 11.6% | 16.6% | Large Cap |
| PPFAS LONG TERM EQ | 4.6% | 13.6% | Multi Cap |
| UTI NIFTY INDEX | 11.0% | 14.0% | Index Fund |
Source – Kuvera.in
What investors sold
We saw the most outflows in these 5 Funds –
| Name | 1Y | 3Y | Category |
| MOSL MULTICAP 35 | 0.9% | 14.7% | Multi Cap |
| DSP MIDCAP | 0.2% | 12.3% | Mid Cap |
| KOTAK EQ ARBITRAGE | 7.1% | 6.8% | Arbitrage |
| UTI HYBRID EQUITY | 0.5% | 9.3% | Hybrid |
| SBI MAGNUM MULTICAP | 7.3% | 13.7% | Multi Cap |
Source – Kuvera.in
Movers & Shakers
1/ Aditya Birla Sun Life Mutual Fund has announced that Ashish Kela will cease to be Key personnel of the AMC following his resignation.
2/ IDBI Mutual Fund has announced that Ashish Mishra has ceased to be the Fund Manager of certain schemes of the AMC: IDBI Diversified Equity Fund, IDBI Midcap Fund, IDBI Focused 30 Equity Fund, IDBI Dividend Yield Fund and IDBI Gold Fund
3/ Axis Mutual Fund has announced that G Gopalakrishna has been appointed as an Independent Director on the board of Axis Mutual Fund Trustee Limited.
Quote of the week:
In times of turmoil, void or suffering, closely stays the images mirroring the lived, far seems the unknown to be; pick yourself a lens to see through, your eyes touch the distant mountains and the lived past disappears into ponzo illusions.
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