Personal Finance

All that you need to know about mutual funds this week

Updated : June 01, 2019 12:40 PM IST

The technology sector outperformed indices with the Nifty IT index up 3.8 percent for the week. on a weekly basis, the Sensex gained 279.4 points and the Nifty rose 78.70 points. Four out of the top five best performing funds invest in digital or technology space. Data going back to 2006 shows that returns of Nifty IT index have mostly been inline with the Nifty 50 index.

Index investing is picking up in India

We have long been a proponent of an Index first well-diversified portfolio. It is heartening to see that two Index funds (UTI Nifty Index and UTI Nifty Next 50 Index) featured in the highest equity inflows we saw this week.

ICICI Prudential Mutual Fund has launched the NFO (new fund offer) for ICICI Prudential MNC Fund, an open-ended equity scheme following MNC theme. The NFO is open for subscription from May 28 to June 11. You can find NFOs on Kuvera here.

Parag Parikh Mutual Fund has received the Securities and Exchange Board of India (Sebi) approval for launching its second equity scheme in six years. The fund house is expected to launch its Tax Saver Fund in the first week of July. As per Rajeev Thakkar, CIO - Parag Parikh Mutual Fund, the portfolio of Parag Parikh Tax Saver Fund would resemble that of Parag Parikh Long Term Equity Fund, apart from exposure to international equities.

DHFL Pramerica Mutual Fund has announced the merger of four of its debt schemes. As per the notice released by the Fund House:

DHFL Pramerica Medium Term Fund (Merging Scheme) will be merged with DHFL Pramerica Credit Risk Fund (Surviving Scheme).

DHFL Pramerica Floating Rate Fund (Merging Scheme) will be merged with DHFL Pramerica Ultra Short Term Fund (Surviving Scheme).

Unitholders who do not wish to retain their holdings in the merging schemes can redeem their units without any exit load between May 22 and June 22, 2019. There will be no changes in the fundamental attributes of the surviving scheme.

NDA government has announced the list of its cabinet ministers. Some of the prominent names include Nirmala Sitharaman as the Minister of Finance, Amit Shah as the Minister of Home Affairs, Rajnath Singh as the Minister of Defence and S Jaishankar as the Minister of External Affairs.

Index Returns

Index	Weekly open	Weekly close	Change
BSE Sensex	39,434.72	39,714.20	0.71%
Nifty	11,844.10	11,922.80	0.66%
S&P BSE SmallCap	14,699.56	14,867.04	1.14%
S&P BSE MidCap	14,945.24	15,096.18	1.01%

Source- BSE/NSE

Top 5 best performing funds

Name	Week	3Y	Category
ABSL DIGITAL INDIA	3.3%	13.8%	Sectoral
TATA DIGITAL INDIA	3.3%	15.4%	Sectoral
HSBC MANAGED SOLUTIONS	2.8%	11.8%	Fund of Funds
SBI TECHNOLOGY OPP	2.8%	13.5%	Sectoral
ICICI PRU TECHNOLOGY	2.7%	13.2%	Sectoral

Source – Kuvera.in

Top 5 worst performing funds

Name	Week	3Y	Category
DSP WORLD ENERGY	-4.5%	2.2%	Fund of Funds
DSP WORLD AGRICULTURE	-2.9%	5.3%	Fund of Funds
DSP US FLEXIBLE EQUITY	-2.5%	13.1%	Fund of Funds
INVESCO PAN EURO	-2.5%	4.4%	Fund of Funds
DHFL PRAMERICA GLOBAL EQUITY OPP	-2.3%	12.0%	Fund of Funds

Source – Kuvera.in

Top 5 best performing ELSS funds

Name	Week	3Y	Category
AXIS LONG TERM EQUITY	2.3%	16.3%	ELSS
BNP PARIBAS LONG TERM EQUITY	1.9%	11.9%	ELSS
JM TAX GAIN	1.6%	18.3%	ELSS
KOTAK TAX SAVER	1.5%	17.5%	ELSS
BOI AXA TAX ADVANTAGE	1.4%	14.7%	ELSS

Source – Kuvera.in

What investors bought

We saw the most inflows in these 5 Funds –

Name	1Y	3Y	Category
HDFC SMALL CAP	-2.9%	20.1%	Small Cap
UTI NIFTY INDEX	14.0%	16.4%	Index Fund
MIRAE ASSET LARGE CAP	14.6%	19.2%	Large Cap
PARAG PARIKH LONG TERM EQUITY	6.5%	14.7%	Multi-Cap
UTI NIFTY NEXT 50 INDEX	NA	NA	Index Fund

Source – Kuvera.in

What investors sold

We saw the most outflows in these 5 Funds –

Name	1Y	3Y	Category
HDFC MID CAP OPP	-1.8%	14.7%	Mid Cap
SBI BLUE CHIP	8.5%	13.7%	Large Cap
ICICI PRU VALUE DISCOVERY	4.5%	11.2%	Value Fund
TATA EQUITY P/E	1.2%	18.9%	Value Fund
KOTAK STANDARD MULTICAP	14.2%	19.1%	Multi Cap

Source – Kuvera.in

Movers and Shakers

1. Pankaj Jain, fund manager - Principal Mutual Fund, has resigned from the services of Principal Asset Management Private Limited with effect from May 31, 2019.

2. IDFC Mutual Fund has announced the appointment of Rucha Amdekar as key personnel in fixed income team and Vinod Rai as an independent director of IDFC Asset Management Company Limited, with effect from 30 May 2019.

Quote of the week:

One of the frustrating things for people who miss the first rally in a bull market is that they wait for the big correction, and it never comes. The market just keeps climbing and climbing: Martin Zweig

Manvendra Singh Rathore is an Analyst at Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.

All that you need to know about mutual funds this week

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