All that you need to know about Mutual Funds this week
This was a week with high volatility where fear of unknown massively impacted stock prices of 3 stocks (DHFL, Yes Bank & Infibeam).
Stock price of DHFL dropped 55% since 21 September when DSP Mutual Fund sold AAA-rated bonds of DHFL at a yield of 11 percent. Yes Bank tumbled 54% from it’s all time high with RBI barring Rana Kapoor from continuing his stint as Chairman of Yes Bank. Stock price of Infibeam fell by 71% on 28 September after a Whatsapp message raising concerns about their accounting practices went viral.
Amidst fear and speculation, we wrote on What makes a great investor? We conclude that great investors do not rush into decisions, stick to long term investing plan and have the ability to ignore the market noise.
All time is uncertain. It was uncertain back in 2007, we just didn’t know it was uncertain. It was uncertain on October 18th, 1987, you just didn’t know it.
– Warren Buffet
The Government has stepped in to maintain liquidity in bonds market by announcing cuts in planned government borrowings. The government intends to limit its borrowings to Rs 2.47 lakh crore in the October-March period as compared to Rs 2.88 lakh crore in the first half (reduction of Rs 41,000 crore).
Index Returns:
BSE Sensex and NIFTY were down by -1.67% and -1.91% respectively. Small Cap Index was down by -8.45% whereas Mid Cap Index corrected by -5.34% for the week.
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 36,841.60 | 36,227.14 | -1.67% |
| Nifty | 11,143.10 | 10,930.45 | -1.91% |
| S&P BSE SmallCap | 15,763.10 | 14,430.68 | -8.45% |
| S&P BSE MidCap | 15,595.63 | 14,763.20 | -5.34% |
Source- BSE/NSE
Top 5 best performing funds:
| Name | Week | 3Y | Category |
| EDELWEISS GREATER CHINA EQUITY | 4.7% | 15.8% | Fund of Funds |
| HSBC GLOBAL EMERGING MARKETS | 4.1% | 15.5% | Fund of Funds |
| EDELWEISS EMERGING MARKETS | 3.6% | 15.6% | Fund of Funds |
| HSBC ASIA PACIFIC YIELD | 3.3% | 17.1% | Fund of Funds |
| DHFL PRAMERICA EURO EQUITY | 2.6% | 9.7% | Fund of Funds |
Source – Kuvera.in
What investors bought:
We saw the most inflows in these 5 schemes –
| Name | 1Y | 3Y | Category |
| HSBC SMALL CAP | -8.0% | 8.7% | Small Cap |
| L&T EMERGING BUSINESSES | 2.5% | 20.0% | Small Cap |
| MIRAE ASSET INDIA EQUITY | 10.2% | 15.5% | Multi Cap |
| SBI BLUE CHIP | 5.4% | 11.5% | Large Cap |
| KOTAK STANDARD MULTICAP | 7.6% | 14.4% | 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 |
| INVESCO INDIA OPPORTUNITIES | 11.6% | 14.6% | Large & Mid |
| ICICI PRU BALANCED ADVANTAGE | 7.0% | 10.7% | Balanced Advantage |
| ICICI PRU BLUECHIP | 11.5% | 14.4% | Large Cap |
| ABSL FRONTLINE EQUITY | 4.6% | 11.8% | Large Cap |
| MOTILAL OSWAL MULTICAP 35 | -0.4% | 13.5% | Multi Cap |
Source – Kuvera.in
Movers and shakers at fund house:
1/ Axis Mutual Fund announced the launch of Axis Growth Opportunities Fund, an open-ended equity scheme that will invest in domestic equities as well as foreign securities
2/ Essel Mutual Fund seeks SEBI approval for launching Essel Focused Equity Fund. This fund will be managed by Viral Berawala.
3/ HSBC Mutual Fund is launching HSBC Equity Hybrid Fund, that invests predominantly in equity and equity-related instruments. This fund will be managed by Neeloptal Sahai and Sanjay Shah.
Quote of the week:
Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
– Warren Buffet
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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