In the holiday-shortened week ended February 16, 2018, the S&P BSE Sensex remained steady moving up marginally higher by 0.01%. The CNX Nifty 50, fell marginally by 0.03% over the same period. In comparison, the S&P BSE MidCap Index dropped 0.20%. Stocks present in the S&P BSE SmallCap Index too plunged, dragging the small cap index lower by 0.76%.
Given this performance of the stock market, all
equity mutual fund schemes were range bound. 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 Public Sector Banks (PSBs) would have suffered the most.
As news of the Rs 11,500 crore fraud involving state-run Punjab National Bank (PNB) emerged, other state-run banks too took a hit. Mutual funds with an exposure to these banks were negatively impacted.
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 Energy, MNC and Commodities sectors held their ground. The Nifty Energy, Nifty MNC and Nifty Commodities indices, reported gains of 1.18%, 0.47% and 0.25% respectively. Mutual funds focused on these sectors would have been able to restrict losses during the week.
Among the sectoral indices that declined the most were the Nifty PSU Bank, Nifty Media and Nifty Bank index. Shares of these sectors fell 8.38%, 1.94% and 1.18% respectively. Mutual funds investing heavily in these sectors would have suffered.
Going ahead, the pace of earnings will set the tone and direction of the market.
Among equity diversified mutual funds,
Templeton India Equity Income Fund,
Parag Parikh Long Term Value Fund,
Templeton India Growth Fund,
HDFC Small Cap Fund, and
Axis Midcap Fund topped the list with returns of 1.82%, 1.22%, 0.92%, 0.86% and 0.83% respectively.
Top Mutual Funds of The Week
Data as on February 16, 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
Templeton India Growth Fund,
Axis Equity Fund,
Sundaram Equity Plus,
Axis Focused 25 Fund, and
Union Focussed Largecap Fund were the
top large cap funds with a return of 0.92%, 0.69%, 0.69%, 0.51% and 0.34%.
HDFC Small Cap Fund,
Axis Midcap Fund,
DSPBR Small & Mid Cap Fund,
DHFL Pramerica Midcap Opportunities Fund, and
Mahindra Unnati Emerging Business Yojana were the
top mid cap funds & small cap funds with a return of 0.86%, 0.83%, 0.66%, 0.62%, and 0.14% respectively.
Among multicap funds,
Templeton India Equity Income Fund,
Parag Parikh Long Term Value Fund,
Aditya Birla SL India Opportunities Fund,
UTI India LifeStyle Fund, and
Union Equity Fund were the
top multi-cap funds with returns 1.82%, 1.22%, 0.73%, 0.39% and 0.32% respectively.
Top Performing ELSSs of the week
In the
ELSS category,
IDBI Equity Advantage Fund,
Axis Long Term Equity Fund,
DHFL Pramerica Long Term Equity Fund,
DHFL Pramerica Tax Plan, and
MOSt Focused Long Term Fund were the
top ELSS funds, generating a return of 0.38%, 0.38%, 0.36%, 0.33% and 0.11% 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
Union Balanced Advantage Fund,
Axis Dynamic Equity Fund,
Principal Smart Equity Fund,
Escorts Balanced Fund, and
IDBI Prudence Fund. These schemes delivered a return of 0.30%, 0.29%, 0.20%, 0.11% and 0.09% 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.
MustRead
Best Midcap Funds For 2018. Look Before You Leap!
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