Rally, Retail & Reliance!

The markets posted strong gains this week on the back of retail and foreign investor inflows, progress in US-China trade talks and deal being reached on Brexit. Sensex rose 3.1% and Nifty rose 3.2% this week amid sustained buying across sectors. This again highlighted how difficult it is to predict short term movements of the marker. Speculators who were wondering why the market fell recently, are now wondering why it is up this week. Given this backdrop, we would reiterate to stick to your asset allocation and to continue investing as per your plan.

 

At least a few data points coming out of AMFI supports that retail investors are sticking to their investment plan. The SIP contribution has increased to Rs 49,361 crore in the first six months of this financial year, up 11% from the previous year. Additionally, retail investors are holding investments longer than High Networth Investors and Foreign Institutional Investors. As of June 2019, 46% of retail assets were owned for more than 2 years compared to 30% of HNI assets.

Reliance Capital has delayed the payment of interest/principal obligations for two non-convertible debentures (NCD), as per its filing with the exchange. The delay in payment supersedes the ratings downgrade by CARE in September when the company’s entire outstanding debt was downgraded to default CARE D rating.

 

SEBI has accepted AMFI’s graded exit load recommendations for redemptions in liquid funds. AMCs would hereon charge 0.0070%, 0.0065%, 0.0060%, 0.0055%, 0.0050% and 0.0045% exit load respectively for redemptions from liquid funds within one to six days of investment.This move is in line with the objective of lowering the volatility in liquid funds.

 

 

Index Returns

Index 1W 1Y 3Y
NIFTY 50 3.2% 11.5% 10.3%
NIFTY NEXT 50 5.3% 6.6% 5.9%
S&P BSE SENSEX 3.1% 12.9% 11.9%
S&P BSE SmallCap 2.8% -8.0% -0.4%
S&P BSE MidCap 4.6% 1.4% 2.1%
NASDAQ 100 0.3% 10.5% 17.6%
S&P 500 0.5% 7.8% 11.8%

Source: BSE / NSE

 

Top 5 best performing funds

Name 1W 1Y 3Y
SBI PSU 6.3% 7.3% -0.1%
UTI Transportation & Logistics 6.1% -6.5% -1.8%
PGIM India Euro Equity 5.5% -0.6% 8.0%
Principal Nifty 100 Equal Weight 5.4% 4.5% 6.3%
Invesco India PSU Equity 5.4% 17.7% 5.6%

Source: Kuvera.in

 

Top 5 worst performing funds

Name 1W 1Y 3Y
Kotak World Gold -3.7% 17.1% 0.5%
DSP World Gold -2.9% 18.8% 0.9%
ICICI Prudential Technology -1.1% -1.5% 15.5%
SBI Technology Opportunities -0.9% 7.2% 14.5%
Franklin India Technology -0.5% 2.4% 13.9%

Source: Kuvera.in

 

What Investors Bought

We saw the most inflows in these 5 Funds –

Name 1W 1Y 3Y
Kotak Standard Multicap 3.1% 14.4% 11.4%
Parag Parikh Long Term Equity 4.2% 10.6% 11.4%
Axis Bluechip 1.8% 25.6% 17.5%
Mirae Asset Large Cap 3.5% 12.9% 12.8%
UTI Nifty Index 3.3% 12.2% 12.0%

Source: Kuvera.in

 

What Investors Sold

We saw the most outflows in these 5 Funds –

Name 1W 1Y 3Y
Edelweiss Arbitrage 0.1% 7.1% 6.9%
ICICI Prudential Equity Arbitrage 0.1% 6.8% 6.7%
Nippon India Arbitrage 0.1% 7.1% 7.0%
Principal Hybrid Equity 2.5% 2.8% 9.7%
Motilal Oswal Multicap 35 3.3% 14.3% 10.3%

Source: Kuvera.in

 

Movers & Shakers

1/ Canara Robeco Mutual Fund has announced that Krishna Sanghavi has resigned from the services of Canara Robeco Asset Management Company Ltd with effect from 12 October 2019.

2/ Principal Mutual Fund has announced that Dhimant Shah – Senior Fund Manager has resigned from the services of Principal Asset Management Private Limited. Ravi Gopalakrishnan will take over the fund management responsibilities.

3/ Principal Mutual Fund has announced that Ashish Aggarwal has been appointed as Associate Fund Manager of Principal Hybrid Equity Fund

4/ Franklin Templeton Mutual Fund has announced that Sanjaya Johri has been appointed as an Independent Director on the Board of Franklin Templeton Trustee Services Private Limited, with effect from 17 October 2019.

 

Quote of the week:

 

 

Some days are just bad days, that’s all. You have to experience sadness to know happiness, and I remind myself that not every day is going to be a good day, that’s just the way it is!

: Dita Von Teese

 

 

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