All that you need to know about Mutual Funds this week
Credit Suisse Global Wealth reports that total household wealth of Indian’s grew 9.7% (in INR terms) to $6 Trillion in the 12-month period to June 2018. The report estimates that India has 3.43 lakh USD millionaires (~ Rs 7 Crores) and expects the number of millionaires to grow at 8.9% annually.
91% of household assets in India are invested in property and other real assets (gold etc). Financial assets such as Mutual Funds, thus provide an easy way for the households to diversify their wealth.
By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.
Warren Buffett
We published a note this week on why you should consider index funds over actively managed funds. The choice of index funds available to Indian investors continues to increase. Soon 3 more index funds will be available – DSP BFSI Fund (NFO opens 22/Oct), Motilal Oswal Nasdaq 100 ETF (FOF) and DSP Nifty 50 Index Fund.
Equity Markets historically, have always been volatile in short-term – but can create serious wealth in the longer term. This falls into perspective when you look at the 18-year chart for NIFTY.
In a busy week for corporate activity, Reliance announced its plans to acquire a controlling stake in Hathway and Den Networks. Arcelor Mittal emerged as the winning bidder for Essar Steel, further boosting its status as a Steel Giant. Meanwhile, Tatas are in talks to acquire a controlling stake in debt-ridden Jet Airways.
Index Returns:
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 34,733.58 | 34,315.63 | -1.20% |
| Nifty | 10,472.50 | 10,303.55 | -1.61% |
| S&P BSE SmallCap | 14,159.43 | 14,082.92 | -0.54% |
| S&P BSE MidCap | 14,286.22 | 14,058.30 | -1.60% |
Source- BSE/NSE
Top 5 best performing funds:
| Name | Week | 3Y | Category |
| DSP WORLD GOLD | 7.3% | 6.1% | Fund of Funds |
| KOTAK WORLD GOLD | 4.7% | 5.9% | Fund of Funds |
| HSBC MANAGED SOLUTIONS INDIA | 3.7% | 9.3% | Fund of Funds |
| FRANKLIN US OPPORTUNITIES | 2.2% | 16.4% | Fund of Funds |
| ABSL GOLD | 1.8% | 6.1% | Fund of Funds |
Source – Kuvera.in
What investors bought:
We saw the most inflows in these 5 schemes –
| Name | 1Y | 3Y | Category |
| L&T EMERGING BUSINESSES | -4.8% | 18.3% | Small Cap |
| HDFC SMALL CAP | 4.2% | 17.7% | Small Cap |
| PARAG PARIKH LONG TERM EQUITY | 5.4% | 12.7% | Multi Cap |
| SBI BLUE CHIP | -4.6% | 8.6% | Large Cap |
| CANARA ROBECO EMERGING EQUITIES | -5.3% | 12.2% | Large & Mid Cap |
Source – Kuvera.in
What investors sold:
We saw the most outflows in these 5 schemes (excluding liquid and short-term schemes) –
| Name | 1Y | 3Y | Category |
| ABSL EQUITY SAVING | -1.7% | 7.9% | Equity Savings |
| ICICI PRUDENTIAL BLUECHIP | 1.3% | 11.3% | Large Cap |
| SUNDARAM RURAL & CONSUMPTION | -8.7% | 13.9% | Sectoral |
| FRANKLIN INDIA BLUECHIP | -3.1% | 7.4% | Large Cap |
| HDFC MID CAP OPPORTUNITIES | -7.5% | 10.9% | Mid Cap |
Source – Kuvera.in
Movers and shakers at fund house:
1/ ICICI Prudential Mutual Fund’s CEO Nimesh Shah has been elected as the Chairman of AMFI. Shah takes over from A Balasubramanian, CEO of Aditya Birla Sun Life Mutual Fund.
2/ Canara Robeco Mutual Fund has promoted Nimesh Chandan to the role of Head of Investment – Equity with immediate effect.
3/ Tata Mutual Fund has appointed Rahul Singh as the Chief Investment Officer – Equities, a role previously occupied by Gopal Agarwal.
4/ DSP Mutual Fund will launch DSP BFSI Next Index Fund on 22 October. This open-ended scheme will replicate S&P BSE Diversified Financials Revenue Growth Index.
5/ DSP Mutual Fund seeks approval from SEBI for launching DSP Nifty 50 Index Fund, to be managed by Gauri Sekaria.
Quote of the week:
I have seen many storms in my life. Most storms have caught me by surprise, so I had to learn very quickly to look further and understand that I am not capable of controlling the weather, to exercise the art of patience and to respect the fury of nature.Paulo Coelho
This market update was initially published by CNBCTV18 in the Personal Finance section.
Manvendra Singh Rathore is an Analyst at Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.
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#MutualFundSahiHai, #KuveraSabseSahiHai!
S.K. Puri
November 19, 2018 AT 11:08
I want to invest in mutual fund
Gaurav Rastogi
November 22, 2018 AT 04:49
Sure you can start at kuvera.in