Jobs, PPF rate cut and Gold prices

COVID19 is taking its toll on employment everywhere. In the US, non-farm payrolls fell by 710,000 while 6.6 million American filed for their first week of unemployment benefits, an all-time highs for both measures. Closer home,  friends taking a pay cut or worse still losing jobs is becoming common. Some industries will need to restructure quickly for the new world and it will cause some pain in the interim. Having lived through two similar restructurings in 2000 and 2008, I can tell you that these times, while they look seemingly endless and very painful at the moment, don’t last forever. So, focus less on the present. Keep upgrading yourself, learn new skills and ensure that you come out of this stronger than ever. At Kuvera, we are looking to hire in a few areas – specifically data sciences, and UI / UX. If you know someone, please connect us at [email protected]

 

Finance Ministry has lowered the Interest rate on Public Provident Fund (PPF) to 7.1% for the first quarter of the financial year 2020-21, the lowest rate since 1977. The government announced a steep cut in the interest rates on small savings schemes for the April-June quarter of FY 2020-21. From 1 April, the interest rates applicable to the National Savings Certificate (NSC) and Senior Citizen Savings Scheme (SCSS) would be 6.8% and 7.4% respectively.

 

Gold prices rose sharply in Indian markets this week. Gold rates had climbed 8% last week in global markets, reflecting its safe-haven status as coronavirus cases continued to shoot up. Gold is an effective portfolio diversifier with low correlation to equity returns especially during wars, market crashes, and disasters. As COVID19 has thrown trading screens into the red across the world, gold prices have zoomed, with the one-year return on the yellow metal above 20%.

 

 

Switch to Direct plans. Think about this, you will pay more in commissions in your investing life than what you lost in the markets last week.

And the commission once paid, is not coming back. It is not a mark to market loss.

So stop paying commissions and use this opportunity to switch to Direct. 

 

 

Global coronavirus cases surpassed 1 million this week, with positive cases in India over 2,000. The country is midway through a 21-day national lockdown, in an effort to curb the spread of COVID19.  On our part, we should follow the best practices and ensure the spread is contained. Please rely on authentic sources in dealing with this along with your family.

 

 

The first lesson for all of us is “please don’t be tone-deaf”. While down markets are a good opportunity to buy or reallocate into equity, as a community we must collectively wish and actively work towards making things better. So stay healthy, sit tight, and spread awareness where you can. Read our 5 practical hacks to help you survive a market crash here.

 

 

Index Returns

Index 1W 1Y 3Y
NIFTY 50 -6.7% -30.4% -4.3%
NIFTY NEXT 50 -0.2% -27.1% -6.8%
S&P BSE SENSEX -7.5% -28.9% -2.6%
S&P BSE SmallCap -0.9% -37.0% -13.6%
S&P BSE MidCap -3.0% -33.6% -10.3%
NASDAQ 100 -0.8% -0.2% 11.5%
S&P 500 -2.1% -13.3% 1.8%

Source: BSE / NSE

 

Top 5 best performing funds

Name 1W 1Y 3Y
DSP World Energy 10.5% -26.5% -7.6%
Tata India Pharma 8.5% 2.9% 1.3%
ICICI Prudential Global 8.4% -3.2% 3.8%
Invesco India Feeder Pan Euro… 7.9% -20.1% -3.5%
ICICI Prudential Pharma … 7.4% -5.1% NA

Source: Kuvera.in

 

Top 5 worst performing funds

Name 1W 1Y 3Y
Baroda Banking & Financial -12.0% -33.0% -6.3%
ABSL Banking & Finan… -11.8% -41.0% -9.0%
UTI Banking & Financial -11.7% -46.1% -12.2%
Nippon India Banking -11.5% -46.8% -12.0%
IDBI Banking & Financial -11.4% -35.8% NA

Source: Kuvera.in

 

What Investors Bought

We saw the most inflows in these 5 Funds –

Name 1W 1Y 3Y
UTI Nifty Index -6.7% -29.9% -3.3%
Axis Bluechip -6.7% -12.8% 6.6%
Nippon India Arbitrage 0.2% 7.0% 6.9%
Axis Long Term Equity -7.6% -17.0% 2.4%
Parag Parikh Long Term Equity -2.7% -17.6% 2.1%

Source: Kuvera.in

 

What Investors Sold

We saw the most outflows in these 5 Funds –

Name 1W 1Y 3Y
IDFC Arbitrage 0.2% 6.7% 6.7%
ICICI Prudential India Opp… -2.0% -35.2% NA
ICICI Prudential Equity Arb.. 0.3% 6.9% 6.6%
Mirae Asset Hybrid Equity -3.9% -18.3% 1.1%
DSP Arbitrage 0.2% 7.0% NA

Source: Kuvera.in

 

Most Watchlisted Fund

Top 5 funds added to watchlist by Kuverians

Name 1W 1Y 3Y
Axis Bluechip -6.7% -12.8% 6.6%
Axis Focused 25 -7.9% -18.7% 2.4%
Axis Long Term Equity -7.6% -17.0% 2.4%
Axis Small Cap -3.9% -14.6% -0.0%
Edelweiss Greater China Equity… -1.0% 13.6% 16.0%

Source: Kuvera.in

 

Top ELSS funds

Name 1W 1Y 3Y
Quant Tax 0.8% -26.5% -4.4%
SBI Magnum Tax Gain Scheme -2.3% -29.6% -6.9%
ICICI Prudential Long Term Eq.. -2.8% -29.5% -5.5%
BOI AXA Tax Advantage -2.9% -12.3% 1.8%
HDFC Tax Saver -2.9% -35.1% -9.8%

Source: Kuvera.in

 

Movers & Shakers

1/ Mirae Asset Mutual Fund has appointed Vrijesh Kasera and Harshad Borawake as co-Fund Managers (Equity portion) of Mirae Asset Hybrid Equity Fund. Neelesh Surana and Mahendra Jajoo will continue as existing co-Fund Managers of the Debt portion of the scheme.

2/ L&T Mutual Fund has extended the NFO subscription period for  L&T Nifty Next 50 Index Fund and L&T Nifty 50 Index Fund to 07 April 2020.

 

Quote of the week:

 

 

For the strength of the Pack is the Wolf, and the strength of the Wolf is the Pack.

: Rudyard Kipling

 

 

Interested in how we think about the markets?

Read more: Zen And The Art Of Investing

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