Mutual Fund Weekly Wrap-up: Multi-cap and Small-cap Funds Lead   Jan 13, 2018


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In the second week of 2018, ended January 12th, the S&P BSE Sensex closed higher by 1.28%. The CNX Nifty 50, was up 1.16% over the same period. In comparison, the S&P BSE MidCap Index delivered a subdued performance, generating a return of 0.37%. Stocks present in the S&P BSE SmallCap Index were charged up and drove the benchmark up 1.46% in the second week of January.
 
Given this performance, clearly equity mutual fund schemes investing in the large-cap space, with some exposure to small-caps were the clear beneficiaries and ended up among the top performing mutual funds for the week.

In terms of valuations, the S&P BSE Sensex is commanding a price-to-earnings (P/E) valuation of 25 times. The P/E of the S&P BSE MidCap is around 48 times and that of the S&P BSE SmallCap index is 118 times. All the indices are trading over twice their long-term average P/E. 

On shifting the focus on sectoral performances, shares of realty, software sevices and media companies were among the top gainers. The NIFTY REALTY, NIFTY IT, NIFTY MEDIA, closed with gains of 5.61%, 4% and 1.77% respectively. Mutual funds focused on these sectors gained traction during the week.

Among the sectoral indices that were laggards were the NIFTY PSU BANK, NIFTY INFRA and NIFTY CONSUMPTION index. Shares of these sectors returned -1.50%, -0.90% and -0.56% respectively. Mutual funds investing heavily in these sectors would have suffered.

Going ahead, inflation data, December quarter earnings, factory output data etc., will set the tone and direction of the market.

Among equity diversified mutual funds, Aditya Birla SL India Opportunities Fund, Union Small and Midcap Fund, Aditya Birla SL Pure Value Fund, Templeton India Equity Income Fund and Aditya Birla SL Special Situations Fund were the top performers with a return of 2.78%, 2%, 1.86%, 1.82% and 1.67% respectively.

Top Mutual Funds of The Week

Scheme Name 1 Week (%) 3 Months  (%) 6 Months  (%) 1 Year (%)
Aditya Birla SL India Opportunities Fund 2.78 14.78 25.91 36.58
Union Small and Midcap Fund 2.00 16.02 19.91 43.35
Aditya Birla SL Pure Value Fund 1.86 12.96 29.74 54.49
Templeton India Equity Income Fund 1.82 8.33 15.85 34.08
Aditya Birla SL Special Situations Fund 1.67 7.29 16.40 35.52
Mirae Asset Great Consumer Fund 1.66 13.12 19.05 47.60
IIFL India Growth Fund 1.51 7.21 10.84 30.11
SBI Magnum Comma Fund 1.50 13.34 23.05 37.40
Sundaram Equity Multiplier 1.48 10.42 13.63 34.90
Reliance Small Cap Fund 1.42 21.01 27.41 60.75
Taurus Discovery Fund 1.38 11.43 17.59 43.08
DHFL Pramerica Large Cap Fund 1.28 5.92 7.00 26.63
DHFL Pramerica Diversified Equity Fund 1.24 8.29 9.15 32.95
Reliance Reg Savings Fund-Equity Option 1.24 12.35 19.25 43.33
Templeton India Growth Fund 1.22 8.26 14.80 37.03
HDFC Small Cap Fund 1.21 21.52 26.15 60.07
Invesco India Mid Cap Fund 1.21 14.53 20.22 42.00
Reliance Retirement Fund-Wealth Creation 1.19 8.17 14.34 35.99
Principal Growth Fund 1.17 13.69 18.71 47.63
Invesco India Mid N Small Cap Fund 1.17 14.53 20.67 43.19
Data as on January 12, 2018. Returns are absolute
(Source: ACE MF, PersonalFN Research)

 
*Please note, this table only represents the best performing funds based solely on past returns and is NOT a recommendation. Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. Past performance is not an indicator for future returns. The percentage returns shown are only for indicative purposes.

Category-wise Top Performing Equity Mutual Funds of the week

On taking a look at the category wise performance, IIFL India Growth Fund, DHFL Pramerica Large Cap Fund, Templeton India Growth Fund, Reliance Retirement Fund-Wealth Creation and Sundaram Equity Plus were the top performers in the large-cap category with a return of 1.51%, 1.28%, 1.22%, 1.19% and 1.16%.

Union Small and Midcap Fund, Reliance Small Cap Fund, Taurus Discovery Fund, HDFC Small Cap Fund and Invesco India Mid Cap Fund were the top performers in the mid-cap category with a return of 2%, 1.42%, 1.38%, 1.21% and 1.21% respectively.

Among multicap funds, Aditya Birla SL India Opportunities Fund, Aditya Birla SL Pure Value Fund, Templeton India Equity Income Fund, Aditya Birla SL Special Situations Fund, Mirae Asset Great Consumer Fund were the top performers with returns like 2.78%, 1.86%, 1.82%, 1.67% and 1.66% respectively.

Top Performing ELSSs of the week

In the ELSS category, Indiabulls Tax Savings Fund, Taurus Tax Shield Fund, ICICI Prudential Long Term Equity Fund (Tax Saving), Principal Tax Savings Fund and Union Tax Saver Fund were the top performers, generating a return of 1.66%, 1.56%, 1.51%, 1.20% and 1.13% respectively.

Top Performing Balanced Funds of the week

Balanced funds too capitalised on the market rally in the first week of 2018. The top performing balanced funds for the week were BOI AXA Mid Cap Equity & Debt Fund, ICICI Prudential Child Care Plan-Gift Plan, UTI Balanced Fund, Principal Balanced Fund and JM Balanced Fund. These schemes delivered a return of 1.26%, 1%, 0.89%, 0.86% and 0.80% respectively.

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Constructing a portfolio with a stable core of long-term investments and a periphery of more specialist or shorter-term holdings can help to deliver the benefits of asset allocation and offer the potential to outperform the market. The satellite portfolio provides the opportunity to support the core by taking active calls determined by extensive mutual fund research.

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Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989. 

QIS was promoted by Mr. Ajit Dayal with an objective of providing value-based information / views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.

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  11. Rahul Goel;
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  1. Neither QIS, it’s Associates, Research Analyst or his/her relative have any financial interest in the subject Company , except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF.
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Quantum Information Services Private Limited CIN: U65990MH1989PTC054667 Regd. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021 Corp. Office: 16 Jolly Maker Chambers II, Nariman Point, Mumbai 400 021. Email: info@personalfn.com Website: www.personalfn.com Tel.: 022 61361200 Fax.: 022 61361222

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