Before I start off on any analysis in this segment, even at the cost of a repetitive bore I will put forth this disclaimer. All fund schemes are taken as direct. However, even if you are a direct investor, hire a financial advisor that you trust who can guide with investments. Pay for your advice.
Fund category definition: Funds with no restriction on market cap allocation or number of stocks
Benchmark: Nifty 500 TRI with a change of 4.68% in August 2022 and a 1-year return of 6.68%
Data as on: 30th August, 2022
There have been no substantial changes in AUM ranking, expense ratio or even the number of stocks.
Only three funds – ICICI, Franklin and Motilal Oswal have beaten the benchmark this month. The number remains the same for the one year performance with only HDFC, ICICI and Franklin India making the cut. More so, four of the funds actually have negative returns in the last one year as compared to the 6.68% that the benchmark has delivered.
Market Cap Allocation
Motilal Oswal has further reduced it’s Large Cap allocation this month by about 4.50%. Simultaneously, there is an over 3.50% increase in the Mid Cap allocation.
Top 5 Sectors
With a 2.31% reduction, the Petroleum Products sector has dropped from the fourth highest to fifth highest sector in HDFC.
There is an organic swap between Cement & Cement Products being dethroned by Telecom in the Franklin fund.
In Motilal Oswal, there is quite a shuffle thanks to two big stock exits – 2.70% stake in Tata Consultancy Services and 3.56% stake in HDFC Life Insurance. This has led to the two sectors being eliminated from the top 5 and instead being replaced by Retailing and Auto Ancilliaries.
Top 10 Stocks & Movements
In HDFC, the team has substantially trimmed three stocks – Reliance Industries by 2.66% (to settle at 2.77%), Sun Pharma by 1.13% (to go down to 0.84%) and TCS by 0.84% (to narrow down to 2.17%). There are also two stocks which have been beefed up – Bharti Airtel by 1.10% (going up to 2.98%) and HCL Tech up by 1.80% (notching it up to 2.63%). Considering the long lineup, it’s no surprise that there are four exits – Cummins (0.69%), ABB India (0.62%), Bajaj Auto (0.27%) and Praj Industries (0.04%). Two stocks make a minor entry – Max Healthcare (0.22%) and Escorts (0.08%).
Parag Parikh Flexi Cap has one new addition – NMDC (0.58%).
SBI has beefed up it’s position in ITC by 0.92% (now at 5.46%) and trimmed down HCL Tech by 1.07% (to 0.98%). The fund has two new bulky additions – CESC (1.02%) and Tech Mahindra (1.00%).
Aditya Birla has exited three tiny positions – Asian Paints (0.22%) after a mere five months, PVR (0.04%) and Kewal Kiran clothing (0.02%).
ICICI has bulked up on three stocks – TVS Motors by 1.54% (now at 6.80%), HDFC Bank by 1.18% (now at 8.05%) and ICICI Bank by 0.82% (now at 6.83%). It has also trimmed it’s position in Mahindra & Mahindra by 0.88% (now at 7.18%). The fund has two exits – United Spirits (0.45%) and Persistent Systems (0.06%) along with a new position in Syrma SGS Tech (0.32%).
Axis has beefed up it’s position in SBI Life Insurance by 0.93%, notching it up to 1.42%. This fund too has exited United Spirits (0.05%) after a mere two months, and added a position in J.K. Lakshmi Cement (0.09%).
Apart from the two big stock chops mentioned above, Motilal Oswal has doubled it’s position in Max Healthcare to reach 2.80%, while beefing up Tube Investments by 0.83% (now at 5.37%). There are also two new positions – Ambuja Cements (1.52%) and Voltas (0.29%).