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All that you need to know about Mutual Funds last week
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The share of gross household financial assets doubled from 3 percent to 6 percent between 2014 and 2018, as per data from Association of Mutual Fund of India (AMFI). AMFI-CRISIL factbook gives a picture of the changes in the mutual fund’s industry since 2014: Share of equity funds in total assets under management went up …
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The share of gross household financial assets doubled from 3 percent to 6 percent between 2014 and 2018, as per data from Association of Mutual Fund of India (AMFI).
AMFI-CRISIL factbook gives a picture of the changes in the mutual fund’s industry since 2014:
- Share of equity funds in total assets under management went up from 24 percent to 45 percent.
- The AUM of equity funds grew at a CAGR of 38.6 percent. This includes both inflows and returns.
- The AUM of Hybrid funds grew at 54 percent CAGR, liquid funds at 27 percent and debt funds at 8 percent.
- Individual investors upped their share of AUM from 48 percent to 58 percent in this period.
- The average ticket size for individual investors increased from Rs 1.02 lakh to Rs 1.69 lakh.
- The annual SIP flow from individual investors increased from Rs 44,000 crore in FY 2016-17 to nearly Rs 93,000 crore in 2018-19.
August 19 was the 26th time since 1990 that Nifty had 3 negative monthly returns in a row. We are seeing some forwards that claim that 3 consecutive down months have usually meant a positive return the next month. We wanted to check for ourselves and ran the same backtest all the way to 1990.
If we look at the past 25 instances that Nifty had 3 negative monthly returns, we do find a small positive return of 1.5 percent in the next month. Unfortunately, it is not statistically significant.
This follows reason as well. While everyone agrees that reversion to mean happens in the market, there is no reason for it to happen at precisely 3 down months. Our advice is to be very wary of such analysis of market timing and almost never ever to follow it.
On Friday, union finance minister Nirmala Sitharaman announced plans to merge 10 public sector banks into 4. This move will bring down the number of PSU banks to 12 from 21. According to the plan:
- Indian Bank will be merged with Allahabad Bank (anchor bank – Indian Bank).
- PNB, OBC and United Bank to be merged (PNB will be the anchor bank).
- Union Bank of India, Andhra Bank and Corporation Bank to be merged (anchor bank – Union Bank of India).
- Canara Bank and Syndicate Bank to be merged (anchor bank – Canara Bank)
The Central Statistics Office released GDP data for the April-June quarter on Friday. India’s GDP grew by 5percent in the first quarter of this Financial Year. In comparison, the GDP growth rate was 5.8 percent during the same period in 2018.
Index Returns
| Index | 1W | 1Y | 3Y |
| NIFTY 50 | 1.8% | -5.6% | 8.0% |
| NIFTY NEXT 50 | 4.2% | -15.0% | 4.7% |
| S&P BSE SENSEX | 1.7% | -3.5% | 9.6% |
| S&P BSE SmallCap | 2.9% | -26.6% | -0.2% |
| S&P BSE MidCap | 2.0% | -19.9% | 0.8% |
| NASDAQ 100 | 3.0% | 0.6% | 17.2% |
| S&P 500 | 2.8% | 0.9% | 10.4% |
Source: BSE / NSE
Top 5 best performing funds
| Name | 1W | 1Y | 3Y |
| DSP Natural Resources & New Energy | 5.2% | -18.6% | 6.3% |
| DSP World Gold | 4.8% | 46.5% | -3.9% |
| Kotak World Gold | 4.8% | 37.9% | -5.4% |
| UTI Nifty Next 50 Index | 4.2% | -14.3% | NA |
| IDBI Nifty Junior Index | 4.1% | -14.1% | 5.6% |
Source: Kuvera.in
Top 5 worst performing funds
| Name | 1W | 1Y | 3Y |
| HSBC Brazil | -4.3% | 24.4% | 7.4% |
| Principal Global Opportunities | -1.5% | -9.9% | 8.5% |
| PGIM India Global Equity Opportunities | -1.5% | 8.9% | 12.4% |
| Reliance Strategic Debt | -0.7% | -1.0% | 4.6% |
| HSBC Global Emerging Markets | -0.6% | -7.4% | 5.7% |
Source: Kuvera.in
What Investors Bought
We saw the most inflows in these 5 Funds –
| Name | 1W | 1Y | 3Y |
| UTI Nifty Index | 1.8% | -4.4% | 9.2% |
| Kotak Standard Multicap | 2.0% | -3.8% | 10.0% |
| UTI Nifty Next 50 Index | 4.2% | -14.3% | NA |
| Mirae Asset Large Cap | 2.3% | -2.3% | 11.4% |
| Axis Bluechip | 1.8% | 2.2% | 13.7% |
Source: Kuvera.in
What Investors Sold
We saw the most outflows in these 5 Funds –
| Name | 1W | 1Y | 3Y |
| DSP World Gold | 4.8% | 46.5% | -3.9% |
| Tata Equity PE | 2.4% | -10.0% | 8.6% |
| Franklin India Equity Saving | 0.8% | 2.4% | NA |
| Aditya Birla Sun Life Equity | 2.1% | -8.7% | 7.2% |
| ICICI Prudential Equity Saving Cumula… | 0.8% | 6.7% | 7.4% |
Source: Kuvera.in
Movers & Shakers
1/ UTI Mutual Fund has announced the change in fund manager for a few schemes including UTI Mid Cap Fund and UTI Long Term Equity Fund.
2/ Axis Mutual Fund has announced that U R Bhat has ceased to be an Independent Director on the Board of Axis AMC and Venkataramanan Anantharaman has been appointed in his stead. The fund house also announced the appointment of Ravi Narayanan as a Director on the board of the AMC.
3/ Indiabulls Mutual Fund has announced that Rekha Warriar, Independent Director, has resigned from the Board of Indiabulls Asset Management Company Limited with effect from 27 August 2019.
4/ Edelweiss Mutual Fund has announced that K V Hegde has ceased to be an Independent Director of Edelweiss Trusteeship Company Limited, with effect from 24 August 2019.
Quote of the week:
There are no great limits to growth because there are no limits of human intelligence, imagination, and wonder: Ronald Reagan
Gaurav Rastogi is the CEO of Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.
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