This week, we honour the life of Jack Bogle, a man who shaped the mutual fund industry towards more transparency and lower costs. The creator of the world’s first index fund, Bogle can also be credited for bringing down the overall costs of the mutual fund industry, and being a lifelong advocate for retail investors. In his words, “If the data does not prove that indexing wins, well, the data is wrong.”
Securities and Exchange Board of India (SEBI) has issued fresh guidelines for mutual fund investment in derivatives. In a circular this week, the market regulator has said that mutual fund schemes (excluding Index Funds and ETFs) can now write call options subject to certain conditions. The schemes must use a covered call strategy to write call options for constituent stocks of Nifty 50 and Sensex indices only.
In December 2018, the number of Mutual Fund folios increased to 8.07 crore. Equity schemes lead with 6.12 crore folios. Debt fund folios just fell short of hitting the 1 crore mark, with 98 lakh folios to their credit. The increase in number of folios is being attributed to increased awareness of Mutual Funds among retail investors.
During the week, investors turned bullish on hopes of interest rate cut by RBI after the latest data on retail inflation. Indian retail inflation, measured by Consumer Price Index, has dropped to 2.19 percent in December, from 2.33 percent in November.
Index Returns:
| Index | Weekly open | Weekly close | Change |
| BSE Sensex | 36,009.84 | 36,386.61 | 1.05% |
| Nifty | 10,794.95 | 10,906.95 | 1.04% |
| S&P BSE SmallCap | 14,600.37 | 14,504.60 | -0.66% |
| S&P BSE MidCap | 15,177.03 | 15,023.39 | -1.01% |
Source- BSE/NSE
Top 5 best performing funds:
| Name | Week | 3Y | Category |
| EDELWEISS US VALUE EQUITY | 3.6% | 11.0% | Fund of Funds |
| ICICI PRU TECHNOLOGY | 3.6% | 14.4% | Sectoral |
| TATA DIGITAL INDIA | 3.6% | 13.4% | Sectoral |
| SBI TECH OPPOR | 3.3% | 12.8% | Sectoral |
| ABSL DIGITAL INDIA | 3.1% | 14.2% | Sectoral |
Source – Kuvera.in
Top 5 worst performing funds:
| Name | Week | 3Y | Category |
| TATA INFRASTRUCTURE | -1.5% | 11.2% | Sectoral |
| RELIANCE POWER AND INFRA | -1.3% | 11.5% | Sectoral |
| RELIANCE BANKING | -1.2% | 22.1% | Sectoral |
| UTI INDIA LIFESTYLE | -1.2% | 12.6% | Sectoral |
| DSP WORLD GOLD | -1.1% | 11.8% | Fund of Funds |
Source – Kuvera.in
Top 5 best performing ELSS funds:
| Name | Week | 3Y | Category |
| SBI MAGNUM TAX GAIN | 0.7% | 11.6% | ELSS |
| FRANKLIN INDIA TAXSHIELD | 0.6% | 12.7% | ELSS |
| HDFC TAX SAVER | 0.6% | 14.0% | ELSS |
| L&T TAX ADVANTAGE | 0.6% | 15.4% | ELSS |
| INVESCO INDIA TAX | 0.4% | 15.7% | ELSS |
Source – Kuvera.in
Top 5 worst performing ELSS funds:
| Name | Week | 3Y | Category |
| AXIS LONG TERM EQUITY | -0.8% | 13.9% | ELSS |
| INDIABULLS TAX SAVING | -0.7% | NA | ELSS |
| BOI AXA TAX ADVANTAGE | -0.5% | 13.0% | ELSS |
| BNP PARIBAS LONG TERM EQUITY | -0.4% | 10.4% | ELSS |
| SUNDARAM DIVERSIFIED EQUITY | -0.4% | 12.9% | ELSS |
Source – Kuvera.in
What investors bought:
We saw the most inflows in these 5 schemes –
| Name | 1Y | 3Y | Category |
| MIRAE ASSET INDIA EQUITY | -1.8% | 17.6% | Multi Cap |
| PARAG PARIKH LONG TERM EQUITY | -1.0% | 13.6% | Multi Cap |
| AXIS FOCUSED 25 | -3.0% | 17.8% | Focused |
| HDFC SMALL CAP | -8.8% | 21.1% | Small Cap |
| L&T EMERGING BUSINESSES | -16.2% | 19.9% | Small 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 |
| SBI ARBITRAGE OPPORTUNITIES | 6.9% | 6.6% | Arbitrage |
| HDFC EQUITY SAVING | 2.0% | 12.9% | Hybrid |
| MOTILAL OSWAL MULTICAP 35 | -8.8% | 15.0% | Multi Cap |
| SBI EQUITY SAVING | 0.6% | 9.0% | Hybrid |
| RELIANCE EQUITY SAVING | -0.9% | 9.1% | Hybrid |
Source – Kuvera.in
Movers and shakers at fund house:
1/ Sanjay Kumar Tripathy has been appointed as an Independent Director on the Board of Invesco Asset Management
2/ Motilal Oswal Mutual Fund announced the resignation of Aditya Makharia. He was the Vice President - Head of Research at Motilal Oswal AMC.
3/ UTI Mutual Fund announced the resignation of Suraj Kaeley. He was the Group President - Sales and Marketing at UTI AMC.
Quote of the week:
Investing is not nearly as difficult as it looks. Successful investing involves doing a few things right and avoiding serious mistakes
- Jack Bogle
Niveditha Vishwamithra is an Analyst at Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.
First Published: Jan 19, 2019 2:55 PM IST
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