Increasing Wealth, Ease of Doing Business & Index Out-performance

Credit Suisse Global Wealth Report released on Monday showed that 7,59,000 Indians have wealth over USD $ 1 Million, up from 7,25,000 millionaires in 2018. India now hosts 2% of the global millionaires. Total household wealth in India increased to USD $ 12.6 Trillion in 2019, a jump of 5.2% from 2018. Wealth per adult increased by 3.3% during the last 1 year and now stands at USD $ 14,569. 

Source: Credit Suisse Global wealth report 2019

As per the report, Indians hold an average of about US $13,000 in physical assets and roughly US $3,000 in financial assets. Debt per adult comes to USD $1,345. The report also projects total wealth in India to grow by 43% over the next 5 years. 

In welcome news for the economy, India moved from 77th to 63rd position in World Bank’s Ease of Doing Business rankings. India’s ranking has consistently improved from 142nd in 2014 to 63rd in 2019. The government had earlier set a target of becoming one of the top 50 countries in the ease of doing business rankings by 2020. 

A nation’s ranking on the Ease of Doing Business Index is based on the average of 10 criteria:

  1. Starting a business
  2. Dealing with construction permits
  3. Getting electricity
  4. Registering property
  5. Getting credit
  6. Protecting investors
  7. Paying taxes
  8. Trading across borders
  9. Enforcing contracts
  10. Resolving insolvency

With the implementation of the Insolvency and Bankruptcy Code, the country jumped 56 places from 108th to 52nd in resolving insolvency. The time taken for resolving insolvency has reduced from 4.3 years to 1.6 years. 

SPIVA (S&P Index Vs Active) published the Mid-Year report for 2019 this week. SPIVA studies the outperformance of active managers vs benchmark Indices all over the world. Their India report includes a 10-year comparison of Index Vs Active funds in the Indian Mutual Fund landscape.

The report shows that over the one year period ending 28 June 2019, 76.67% of Indian Equity Large-Cap Funds and 80.95% of Indian ELSS Funds underperformed compared to their respective benchmarks. On the other hand, 81.08% of  Indian Mid-/Small-Cap Equity funds outperformed the benchmark over the one year period ending 28 June 2019. 

Source: SPIVA India Scorecard Mid-Year 2019

 

Index Returns

Index 1W 1Y 3Y
NIFTY 50 -0.7% 14.4% 10.0%
NIFTY NEXT 50 -0.2% 10.3% 5.7%
S&P BSE SENSEX -0.6% 15.9% 11.6%
S&P BSE SmallCap 0.2% -3.3% -0.9%
S&P BSE MidCap -0.5% 3.3% 1.9%
NASDAQ 100 2.0% 14.4% 18.0%
S&P 500 1.2% 11.7% 12.1%

Source: BSE / NSE

 

Top 5 best performing funds

Name 1W 1Y 3Y
HSBC Brazil 3.8% 11.0% 7.3%
DSP World Gold 2.8% 21.7% -0.2%
SBI Healthcare Opportunities 2.5% -1.6% -6.6%
Aditya Birla Sun Life Gold 2.2% 21.8% 8.0%
UTI Healthcare 2.2% -1.5% -4.3%

Source: Kuvera.in

 

Top 5 worst performing funds

Name 1W 1Y 3Y
ICICI Prudential Technology -6.6% -1.2% 13.2%
Aditya Birla Sun Life Digital India -4.9% 8.0% 15.2%
Tata Digital India -4.9% 6.5% 17.3%
Franklin India Technology -4.7% 1.8% 10.9%
SBI Technology Opportunities -4.5% 7.6% 12.9%

Source: Kuvera.in

 

What Investors Bought

We saw the most inflows in these 5 Funds –

Name 1W 1Y 3Y
Axis Bluechip -1.1% 27.3% 16.5%
UTI Nifty Index -0.6% 15.8% 11.2%
Parag Parikh Long Term Equity -0.0% 15.6% 11.4%
Kotak Standard Multicap -0.3% 18.8% 11.0%
Mirae Asset Emerging Bluechip 0.4% 19.1% 12.0%

Source: Kuvera.in

 

What Investors Sold

We saw the most outflows in these 5 Funds –

Name 1W 1Y 3Y
IDFC Arbitrage 0.1% 7.2% 6.8%
Nippon India Arbitrage 0.1% 7.2% 7.0%
Aditya Birla Sun Life Small Cap -0.7% -4.3% -1.7%
ICICI Prudential Value Discovery -1.7% -0.3% 3.7%
Principal Emerging Bluechip -0.1% 11.2% 8.2%

Source: Kuvera.in

 

Movers & Shakers

1/ ICICI Prudential Mutual Fund has appointed Bernard Teo as Director on the Board of ICICI Prudential Asset Management Company Limited, with effect from 23 October 2019. 

2/ Franklin Templeton Mutual Fund has appointed Sanjaya Johri as an Independent Director on the Board of Franklin Templeton Trustee Services Private Limited, with effect from 17 October 2019.

 

Quote of the week:

 

 

The secret of success is to do the common thing uncommonly well.

: John D. Rockefeller Jr.

 

 

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