All that you need to know about Mutual Funds this week
SEBI directed that all fees and expenses in a direct plan under various heads, including the investment and advisory fees, should not be higher than the same expenses in a regular plan. Investors in Direct mutual funds stand to gain as the directive will bring down the Total Expense Ratio (TER) of Direct plans, in certain cases by as much as 0.5%. AMC’s have already started announcing revised TER for Direct plans.
NIFTY closed at its lowest level since Aug 28th and has erased all year to date gains. NIFTY is down 8.2% this month. Historical returns on NIFTY going back to 1990 suggest, that on average, NIFTY has seen a monthly decline of more than 8% every 10 – 11 months. Put differently, since 1990 there have been 39 monthly instances where NIFTY has decline more than 8%. So, even though in light of the past 3 years such moves seem dramatic, they actually are part and parcel of long-term investing.
Index Returns:
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 34,315.63 | 33,349.31 | -2.82% |
| Nifty | 10,303.55 | 10,030.00 | -2.65% |
| S&P BSE SmallCap | 14,082.92 | 13,597.64 | -3.45% |
| S&P BSE MidCap | 14,058.30 | 13,870.15 | -1.34% |
Source- BSE/NSE
Top 5 best performing funds:
| Name | Week | 3Y | Category |
| KOTAK GOLD | 0.9% | 5.2% | Fund of Funds |
| IDFC GOV SECURITIES | 0.6% | 7.0% | Gilt Fund |
| IDBI GOLD | 0.5% | 3.4% | Fund of Funds |
| ICICI PRU LONG TERM BOND | 0.5% | 7.7% | Long Duration |
| ICICI PRU CONST MATURITY GILT | 0.5% | 7.8% | Gilt Fund |
Source – Kuvera.in
What investors bought:
We saw the most inflows in these 5 schemes –
| Name | 1Y | 3Y | Category |
| L&T EMERGING BUSINESSES | -9.5% | 16.7% | Small Cap |
| HDFC MID CAP OPPORTUNITIES | -9.7% | 10.1% | Mid Cap |
| ICICI PRU BLUECHIP | -2.0% | 10.3% | Large Cap |
| HDFC SMALL CAP | 0.4% | 16.2% | Small Cap |
| MIRAE ASSET INDIA EQUITY | -2.9% | 11.4% | Multi 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 |
| L&T EQUITY | -5.8% | 7.1% | Multi Cap |
| ICICI PRU EQUITY AND DEBT | -2.1% | 11.3% | Aggressive Hybrid |
| TATA RETIREMENT SAVING PROGRESSIVE | -7.5% | 11.5% | Retirement Fund |
| L&T INDIA VALUE | -11.9% | 8.8% | Value Fund |
| ABSL FRONTLINE | -6.2% | 8.1% | Large Cap |
Source – Kuvera.in
Movers and shakers at fund house:
1/ Essel Mutual Fund has sought SEBI nod for launching Essel Balanced Advantage Fund. This open-ended scheme would be managed by Viral Berawala and Killol P Pandya.
2/ Mirae, Parag Parikh, Edelweiss, Essel and ABSL are some of the AMCs that have released the revised TER for their schemes after recent SEBI circular.
Quote of the week:
I’ve had a lot of worries in my life, most of which never happened.
Mark Twain
This market update was initially published by CNBCTV18 in the Personal Finance section.
Manvendra Singh Rathore and Niveditha Vishwamitra are analysts at Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.
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#MutualFundSahiHai, #KuveraSabseSahiHai!
Srikanth
October 28, 2018 AT 08:08
Excellent updates and always look forward to it. One small correction. ABSL Frontline is a large cap, not a mid cap fund as stated.
Gaurav Rastogi
October 29, 2018 AT 02:56
Noted Srikanth.