9.74 lakh SIP accounts were added each month during this financial year with an average ticket size being Rs 3,200, as per AMFI data. Despite market volatility, SIP inflows from retail investors stood at Rs 7,985 crore in November 2018, a 42 percent increase as compared to the previous year.
With Tax season around the corner, a tax saving ELSS fund made the top five funds where we saw the most inflows this week. A timely reminder that if you haven't done your tax planning, you should do it now.
International Funds went through a major correction this week with all 5 funds in worst performing funds list belonging to this category. NASDAQ the tech index in the US, closed the week down 21.9 percent from its August 29 record closing high. A 20 percent decline is considered the threshold for a bear market. The S&P 500 is down 17.5 percent from its September 20 record high close.
The year 2018 witnessed increasing awareness and demand in passive (or Index) investing. Passive investing has gained traction over the past decade, growing from Rs 9,000 crore in 2008 to over Rs 1 lakh crore in August 2018. We have been a proponent of index first approach to portfolio construction since the start and you can see our index recommendations here.
Index Returns:
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 35,962.93 | 35,742.07 | -0.61% |
| Nifty | 10,805.45 | 10,754.00 | -0.48% |
| S&P BSE SmallCap | 14,501.76 | 14,633.62 | 0.91% |
| S&P BSE MidCap | 15,192.84 | 15,253.00 | 0.40% |
Source- BSE/NSE
Top 5 best performing funds:
| Name | Week | 3Y | Category |
| INVESCO INDIA PSU | 3.2% | 9.1% | Sectoral |
| DSP NATURAL RES. & NEW ENERGY | 2.8% | 22.3% | Sectoral |
| SBI CONTRA | 2.5% | 8.3% | Contra |
| SBI PSU GROWTH | 2.2% | 4.3% | Sectoral |
| SBI SMALL CAP | 2.1% | 17.0% | Small Cap |
Source – Kuvera.in
Top 5 worst performing funds:
| Name | Week | 3Y | Category |
| FRANKLIN FEEDER US OPPOR | -9.7% | 9.3% | Fund of Funds |
| KOTAK US EQUITY | -8.0% | 9.2% | Fund of Funds |
| ICICI PRUDENTIAL US BLUECHIP | -8.0% | 12.1% | Sectoral |
| EDELWEISS GREATER CHINA | -7.7% | 7.5% | Fund of Funds |
| PRINCIPAL GLOBAL OPPOR | -7.6% | 7.7% | Fund of Funds |
What investors bought:
We saw the most inflows in these 5 schemes –
| Name | 1Y | 3Y | Category |
| L&T MIDCAP | -9.5% | 15.4% | Mid Cap |
| HDFC SMALL CAP | -3.7% | 18.3% | Small Cap |
| CANARA ROB. EMER. EQUITIES | -6.4% | 14.5% | Large & Mid Cap |
| ABSL TAX RELIEF96 | -2.3% | 14.4% | ELSS |
| INVESCO INDIA CONTRA | 1.0% | 17.5% | Contra |
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 |
| KOTAK STANDARD MULTICAP | 1.2% | 15.6% | Multi Cap |
| ABSL FRONTLINE EQUITY | -0.8% | 12.8% | Large Cap |
| MOTILAL OSWAL MULTICAP 35 | -5.8% | 14.8% | Multi Cap |
| MIRAE ASSET INDIA EQUITY | 2.3% | 16.1% | Multi Cap |
| HDFC HYBRID EQUITY | -9.7% | 7.7% | Hybrid |
Source – Kuvera.in
Movers and shakers at fund house:
1/ Pramerica Financial is set to acquire DHFL’s stake in DHFL Pramerica Asset Managers (DPAM). This transaction will make DPAM a wholly-owned subsidiary of Prudential Financial, which is among the top 10 largest investment managers in the world with more than $1 trillion in assets under management.
2/ Sources confirmed that IDFC has shelved its plans to sell IDFC AMC, and has decided to focus more on the retail segment with its Mutual Fund business.
Quote of the week:
A holiday is an opportunity to journey within. It is also a chance to chill, to relax. It is when I switch on my rest mode.
Prabhas
Manvendra Singh Rathore is an Analyst at Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.
First Published: IST
