All that you need to know that happened last week in Mutual Funds.
Growth is back! Government data shows GDP growth for the first quarter (Apr-Jun) of FY2018-19 at 8.2%, the highest in 2 years. The actual growth handily beat a Reuters survey of economists that had expected GDP growth at 7.6%. Manufacturing sector led the way with a growth of 13.5%. With China posting a 6.7% growth in the same quarter, this firmly establishes India as the fastest-growing major economy. Strong growth, historically, has led to better corporate earnings and consequently a stronger stock market.
The India Post Payments Bank is set for a launch giving a big boost to banking access in rural India. The Indian post department has around 1,30,000 service points in rural India while there are about 50,000 bank branches in rural India.
Just as it has done globally, Index funds are gaining popularity in India as well with Mirae Asset seeking to launch a Nifty 50 Index fund. Index funds track the constituent of an Index (Nifty 50, Next Nifty 50, BSE Sensex etc) and have low expense ratios. You can track existing Index funds here.
What worked best:
Equity markets continued the strong bull run as BSE Sensex and NIFTY rose by 1.03% and 1.07% respectively over the week. Small Cap Index surged by 1.95% whereas Mid Cap Index outperformed to close up 1.99% for the week.
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 38,251.80 | 38,645.07 | 1.03% |
| Nifty | 11,557.10 | 11,680.50 | 1.07% |
| S&P BSE SmallCap | 16,864.43 | 17,193.20 | 1.95% |
| S&P BSE MidCap | 16,552.74 | 16,881.33 | 1.99% |
Source- BSE/NSE
Top 5 best performing funds:
| Name |
Week | 3Y | Category |
| FRANKLIN INDIA FF US | 3.6% | 15.8% | Fund of Funds |
| DSP WORLD AGRICULTURE | 3.2% | 6.1% | Fund of Funds |
| FRANKLIN INDIA FF EUROPEAN | 3.1% | 6.1% | Fund of Funds |
| DHFL PRAMERICA GLOBAL AGRI | 3.0% | 6.3% | Fund of Funds |
| SUNDARAM GLOBAL ADVANTAGE | 3.0% | 11.1% | Fund of Funds |
Source – Kuvera.in
What investors bought:
We saw the most inflows last week in these 5 schemes –
| Name | 1Y | 3Y | Category |
| SBI BLUE CHIP | 10.9% | 14.0% | Large Cap |
| HDFC SMALL CAP | 24.8% | 22.9% | Small Cap |
| L&T EMERGING BUSINESSES | 12.3% | 23.7% | Small Cap |
| CANARA ROBECO EMERGING EQUITIES | 16.5% | 20.2% | Large & Mid Cap |
| HDFC MID CAP OPPORTUNITIES | 12.9% | 17.3% | Mid Cap |
Source – Kuvera.in
What investors sold:
We saw the most outflows last week in these 5 schemes (excluding liquid and short-term schemes) –
| Name | 1Y | 3Y | Category |
| AXIS ARBITRAGE | 6.6% | 6.8% | Arbitrage |
| SBI MAGNUM MIDCAP | 3.3% | 10.9% | Mid Cap |
| RELIANCE MULTI CAP | 14.9% | 10.5% | Multi-Cap |
| SBI MAGNUM MULTICAP | 12.5% | 16.8% | Multi-Cap |
| HDFC BALANCE ADVANTAGE | 14.0% | 15.1% | Balanced Advantage |
Source – Kuvera.in
Movers and shakers at fund house:
1/ Principal Financial Group completed full ownership of their joint venture, Principal Pnb Asset Management Company Private Limited. Punjab National Bank had previously owned a 21.38% stake in Principal PNB AMC.
2/ Canara Robeco Mutual Fund announced the resignation of Mr Shital Kumar Jain as the director on Board of Directors of Canara Robeco Asset Management Company Limited.
3/ UTI Mutual Fund announced the resignation of Mr P N Venkatachalam as a director on the Board of Directors of UTI Asset Management Company Ltd. (UTI AMC) effective from Aug 16.
Quote of the week:
India’s sustained growth reflects its strong resilience to adverse global conditions, because of strong economic fundamentals. The encouraging growth rates in agriculture, manufacturing and construction show that the growth momentum continues to be broad-based. – Bibek Debroy, Chairman of the Economic Advisory Council to Prime Minister
This market update was initially published by CNBCTV18 in the Personal Finance section.
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