Index, Rising Inflation & New Funds!

Index mutual funds are set to beat actively managed funds for the second year. Data from Refinitiv Lipper indicates that the average returns of index funds year-to-date is 9.6%, a difference of almost 4% from active funds’ returns of 5.7%. In comparison, index funds posted average gains of 2.3% in 2018, while actively managed portfolios posted negative returns. We have been a proponent of index first approach to portfolio construction since the start. You can find index funds on Kuvera here

On the macro front, retail inflation of India for the month of October breached the Reserve Bank of India’s (RBI) medium-term target of 4% for the first time since July 2018. The all-India general consumer price index (CPI) inflation touched 4.62% in October, compared to 3.99% in September. 

In a recent Twitter poll on the preferred asset class for 2020, Gold took the top spot at 38% votes.  In our recent blog “Digital gold for smart investors”, we highlighted how Gold is not only a good hedge against inflation but also a currency hedge against rupee devaluation.

The government plans to increase insurance cover on bank deposits from the current Rs 1 lakh. Finance Minister Nirmala Sitharman on Friday announced that a bill proposing this change will be introduced in the winter session of Parliament commencing on Monday. The Finance Minister also announced that the government plans to bring legislation to regulate multi-state co-operative banks

Tata Mutual Fund has launched the NFO for Tata Focused Equity Growth Direct Plan on 15th November. Union Mutual Fund has launched the NFO for Union Large & Midcap Growth Direct Plan on the same day. Both the new fund offerings will be open for subscription until the 29th of this month.


Index Returns

Index 1W 1Y 3Y
NIFTY 50 -0.1% 12.0% 13.6%
NIFTY NEXT 50 -0.7% 3.4% 10.2%
S&P BSE SENSEX 0.1% 14.4% 15.3%
S&P BSE SmallCap -1.1% -8.4% 3.8%
S&P BSE MidCap 0.3% -1.5% 7.2%
NASDAQ 100 0.7% 20.6% 20.4%
S&P 500 0.9% 14.3% 12.7%

Source: BSE / NSE


Top 5 best performing funds

Name 1W 1Y 3Y
PGIM India Global Equity Opportunities 3.1% 11.0% 15.1%
Nippon India US Equity Opportunites 2.8% 18.5% 19.1%
Franklin India Feeder Franklin US Opp… 2.6% 16.6% 18.9%
SBI Banking & Financial Services 2.5% 27.0% 20.3%
Motilal Oswal Midcap 30 2.0% 15.5% 7.8%



Top 5 worst performing funds

Name 1W 1Y 3Y
DSP Natural Resources & New Energy -3.9% 0.1% 7.4%
HSBC Brazil -2.4% 11.4% 13.5%
ICICI Prudential Bharat 22 Fof -2.1% -1.4% NA
Sundaram Small Cap -1.9% -1.6% 0.4%
DSP World Mining -1.8% 5.3% 7.7%



What Investors Bought

We saw the most inflows in these 5 Funds –

Name 1W 1Y 3Y
Nippon India Arbitrage 0.0% 7.1% 7.0%
ICICI Prudential Equity Arbitrage 0.0% 6.8% 6.7%
Mirae Asset Emerging Bluechip 0.2% 16.2% 15.5%
Parag Parikh Long Term Equity -0.2% 16.3% 13.6%
Axis Bluechip 0.2% 24.5% 19.4%



What Investors Sold

We saw the most outflows in these 5 Funds –

Name 1W 1Y 3Y
ICICI Prudential Value Discovery -0.3% 0.1% 6.0%
ICICI Prudential Equity & Debt -0.3% 7.1% 10.3%
Aditya Birla Sun Life Small Cap -1.6% -10.5% 1.0%
Principal Multi Cap Growth Fund 0.1% 4.0% 10.7%
Franklin India Smaller Companies -0.7% -5.1% 3.3%



Movers & Shakers

1/ Edelweiss Mutual Fund has appointed Hardik Varma as Fund Manager of Edelweiss Large Cap Fund along with Bharat Lahoti with effect from 11 November 2019 (erstwhile managed solely by Bharat Lahoti).

2/ IDFC Mutual Fund has announced that Prashasta Seth has ceased to be a Fund Manager for the AMC, with effect from 11 November 2019. Mayur Patel will take on the managerial responsibilities of IDFC Focused Equity Fund. Additionally, Komal Grover has been appointed as a Key Personnel in Fund Management Team of the AMC.

3/ Edelweiss Mutual Fund has announced that Manjit Singh has been appointed as an Independent Director on the board of Edelweiss Asset Management Limited, with effect from 07 November 2019.


Quote of the week:



Burn worldly love, rub the ashes and make ink of it,

Make the heart the pen, the intellect the writer,

Write that which has no end or limit.

: Guru Nanak



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