Mutual Fund Weekly Wrap-up: Equity Mutual Funds Stumble On LTCG Tax   Feb 03, 2018

In the crucial week ended February 2, 2018, the S&P BSE Sensex slumped by 2.73%. The CNX Nifty 50, fell 2.79% over the same period. In comparison, the S&P BSE MidCap Index dropped as much as 7%. Stocks present in the S&P BSE SmallCap Index too plunged, dragging the small cap index lower by 7.73%.

Given this performance of the stock market, all equity mutual fund schemes were in the red. A few schemes that were predominantly invested in defensive sectors were able to stem the losses. As well as schemes with limited exposure to mid- and small-cap stocks.

Such schemes were among the top performing mutual funds for the week. Those mutual funds that have aggressively invested in mid and small cap stocks suffered the most.

To support budget expenditure, the government finally decided to levy 10% tax on long term capital gains in the Budget 2018-19. Quite predictably, markets sold off in the subsequent trading session following the Budget.

The prevailing high valuations had already made the market unstable, Budget 2018 was the tipping point.

In terms of valuations, the price-to-earnings (P/E) multiple of the S&P BSE Sensex eased to under 25 times. The P/E of the S&P BSE MidCap is stilling hovering near 40x and that of the S&P BSE SmallCap index remains above 100 times.

All the indices are trading over twice their long-term average P/E. Hence, chances of a further decline cannot be ruled out.

On shifting the focus on sectoral performances, shares of IT, Auto and Consumer sectors declined the least. The Nifty IT, Nifty Auto and Nifty FMCG, reported losses of 1.02%, 1.79% and 1.94% respectively. Mutual funds focused on these sectors would have been able to restrict losses during the week.

Among the sectoral indices that decline the most were the Nifty Realty, Nifty Pharma and Nifty PSU Bank index. Shares of these sectors fell 8.28%, 7.06% and 7.05% respectively. Mutual funds investing heavily in these sectors would have suffered.

Going ahead, the RBI Monetary Policy, December quarter earnings, etc., will set the tone and direction of the market.

Among equity diversified mutual funds, Canara Rob Large Cap+ Fund, MOSt Focused Multicap 35 Fund, Invesco India Business Leaders Fund, Sundaram Equity Plus, and MOSt Focused 25 Fundtopped the list with returns of -1.72%, -1.81%, -1.84%, -1.93% and -1.99% respectively.

Top Mutual Funds of The Week

Scheme Name 1 Week (%) 3 Months  (%) 6 Months  (%) 1 Year (%)
Canara Rob Large Cap+ Fund -1.72 2.79 4.81 20.87
MOSt Focused Multicap 35 Fund -1.81 1.63 5.25 26.71
Invesco India Business Leaders Fund -1.84 4.87 7.05 22.85
Sundaram Equity Plus -1.93 3.52 7.06 16.72
MOSt Focused 25 Fund -1.99 3.32 4.08 20.42
IDBI Focused 30 Equity Fund -2.04
Kotak Classic Equity Scheme -2.21 1.75 7.39 25.83
ICICI Pru Select Large Cap Fund -2.22 2.11 5.44 16.02
Reliance Quant Plus Fund -2.23 2.57 5.07 22.83
JM Equity Fund -2.25 1.74 3.76 16.62
Edelweiss Prudent Advantage Fund-A -2.29 2.87 5.36 20.08
Parag Parikh Long Term Value Fund -2.35 4.43 12.13 26.45
Invesco India Dynamic Equity Fund -2.39 0.32 4.20 18.70
Axis Multicap Fund -2.46
ICICI Prudential Multicap Fund -2.49 1.82 7.46 20.10
Canara Robeco Equity Diversified Fund -2.51 2.23 6.11 25.30
Escorts Growth -2.51 3.62 11.72 29.10
Axis Equity Fund -2.53 1.46 5.97 26.49
SBI Magnum Equity Fund -2.55 1.06 4.64 18.82
Edelweiss Large Cap Advantage Fund-A -2.61 3.58 6.87 26.17
Data as on February 2, 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 Canara Rob Large Cap+ Fund, Invesco India Business Leaders Fund, Sundaram Equity Plus, MOSt Focused 25 Fund, and IDBI Focused 30 Equity Fund were the top large cap funds with a return of -1.72%, -1.84%, -1.93%, -1.99% and -2.04%.

Franklin India Prima Fund, Canara Rob Emerging Equities Fund, Axis Midcap Fund, SBI Magnum Global Fund and LIC MF Midcap Fund were the top mid cap funds & small cap funds with a return of -3.98%, -4.33%, -4.38%, -4.43%, and -4.49% respectively.

Among multicap funds, MOSt Focused Multicap 35 Fund, Parag Parikh Long Term Value Fund, Axis Multicap Fund, ICICI Prudential Multicap Fund, and Canara Robeco Equity Diversified Fund were the top multi-cap funds with returns -1.81%, -2.35%, -2.46%, -2.49% and -2.51% respectively.

Top Performing ELSSs of the week

In the ELSS category, MOSt Focused Long Term Fund, Canara Rob Equity Tax Saver Fund, IDBI Equity Advantage Fund, JM Tax Gain Fund,  and ICICI Prudential Long Term Equity Fund (Tax Saving) were the top ELSS funds, generating a return of -2.35%, -2.44%, -2.74%, -2.91% and -2.92% respectively.

Top Performing Balanced Funds of the week

Balanced funds too declined with the market. Some were able to stem the losses better than the others. The top balanced funds for the week were Tata Regular Saving Equity Fund, L&T Dynamic Equity Fund, Principal Smart Equity Fund, MOSt Focused Dynamic Equity Fund, and ICICI Prudential Balanced Advantage Fund. These schemes delivered a return of -0.59%, -0.71%, -1.00%, -1.01% and -1.40% respectively.

How to invest in the best mutual fund schemes?

PersonalFN suggests that you must take a closer look at the performance of your mutual funds. Staying invested in funds with a proven track-record of consistent performance may pay off in the long run.

Thus, in the interest of your long-term financial wellbeing, it is best that you wisely structure and review your mutual fund portfolio. If you are unsure where to invest fresh investible surplus currently, to strike the correct risk-return tradeoff we recommend adopt a ‘core and satellite approach’ to investing. 

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.



Best Midcap Funds For 2018. Look Before You Leap!

Editor's note:

Are you confused with the present market conditions?

Will the market go up or down from here?

Should you invest at all? If yes, how?

Which mutual fund schemes to invest?

If such questions are lingering in your mind, watch out for this space.

We have something that may interest you.

So, stay tuned…


About the Company including business activity 

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.

'PersonalFN' is a service brand of QIS and was started in the year 1999. In 1999, the Company registered the Domain name for providing information on mutual funds and personal financial planning, financial markets in general, etc and services related to financial planning and research in various financial instruments including mutual funds, insurance and fixed income products to customers. It offers asset allocation and researched investment recommendations through its financial planning services. 

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  1. Money Simplified Services Private Limited;
  2. PersonalFN Insurance Services India Private Limited;
  3. Equitymaster Agora Research Private Limited;
  4. Common Sense Living Private Limited;
  5. Quantum Advisors Private Limited;
  6. Quantum Asset Management Company Private Limited;
  7. HelpYourNGO Private Limited;
  8. HelpYourNGO Foundation;
  9. Natural Streets for Performing Arts Foundation;
  10. Primary Real Estate Advisors Private Limited;
  11. Rahul Goel;
  12. I V Subramaniam.

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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.
  2. Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report.
  3. Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS (PersonalFN) is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront /annualized & trail), if any, for any Schemes by QMF to QIS (PersonalFN) is also at arm's length and as per prevailing market practices

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Subject Company means Mutual Fund Schemes

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: Website: Tel.: 022 61361200 Fax.: 022 61361222

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