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 -5.05% in June 2022 and a 1-year return of 0.56%
Data as on: 30th June, 2022
In terms of AUM ranking, there is no change.
Instead of giving a commentary for the returns, this is now colour coded with the obvious thing of red for under and green for over performing the benchmark.
SBI is the only fund to have gone shopping with an increase in number of stocks from 53 to 59 over last month.
In terms of expense ratio, ICICI makes news again with the expense ratio moving up from 0.29% to 0.37%. Considering how the fund was at an unjustifiably low 0.11% for the longest time, this seems to be a path of course correction.
Market Cap Allocation
Considering this month also sees the market cap tagging rejig by AMFI, I have kept my lens broad to only mention changes of atleast 5% in market cap allocation.
With that framework, none of the funds have a drastic move worth mentioning.
Overall, SBI and Axis have both cut down their total equity exposure by about 3% which makes Axis the only fund in the sub-90% category. On the other hand, Parag Parikh has increased it’s allocation by almost 3.5% over last month taking it up to 93.51%.
Top 5 sectors
This month has been pretty boring in terms of sectoral movements.
ICICI sees an organic swap between Retail and Construction for the fifth spot, with the former making it to the charts this time.
Motilal Oswal also sees an organic swap with Retailing edging out Insurance for the fifth spot.
Top 10 stocks & Movements
Kotak has made a small new allocation to Maruti Suzuki (0.38%).
HDFC has reduced it’s allocation to Coal India by 0.80%. The fund also sees a 0.78% increased allocation to Infosys taking it up a spot to third in the stock allocation.
There is an astronomical increase in the Coal India allocation in Parag Parikh from a miniscule 0.16% all the way up to 5.02%, making it a new inclusion in the top 10. HDFC Limited also sees a 1.20% increase to sit at 7.28%, taking it up two spots to third biggest stock.
SBI has packed in some action this month with quite a few substantial changes – increase of 0.87% in Infosys (to 3.65%) and increase by 1.64% in Reliance Industries (to go up to 4.26%). Trimming shears have been used on ICICI Bank down by 1.59% (to 7.27%), HCL Technologies by 1.76% (down to 2.58%) and Indian Hotels cut by 0.95% (landing at 1.85%). There are also two small complete exits – 0.21% position in City Union Bank and 0.36% in US stock Netflix. There are two new substantial entrants – Mahindra & Mahindra (1.11%) and the US stock Microsoft (1.09%). But, if I was to look at the entire shopping basket, there are quite a few others with smaller positions for now that could be beefed up in the coming months – ICICI Lombard (0.66%), Minda Industries (0.52%), Zomato (0.48%), Torrent Power (0.42%), United Breweries (0.15%) and AIA Engineering (0.06%).
Aditya Birla has invested again in Apollo Hospitals, with a bigger position of 0.86%. I say again, because the stock was in the portfolio for the first two months of the year as well before being exited out of in March 2022.
ICICI is another fund with more than usual changes. There is a 0.90% reduction in the SBI Life Insurance allocation taking it down to 2.44%. Three stocks see a substantial hike – TVS Motors by a big 1.76% (touches 4.78%), Maruti Suzuki up by 1.13% (to reach 3.15%) and HDFC Bank up by 0.98% (to go to 6.73%). The fund has also completely exited it’s 0.91% position in Tata Steel while making place for a new 0.64% allocation to Gland Pharma.
Axis has taken the scissors on two of it’s traditional favourites – Bajaj Finance sees a 1.13% cut taking it down to 7.82% while Avenue Supermarts is cut by 0.86% to come down to 6.66%. Mahindra & Mahindra on the other hand has more than doubled in weight to reach 2.04%. There are three miniscule exits – TTK Prestige (0.19%), DLF (0.24%) and Navin Fluorine (0.04%) which had a short one-month life in the portfolio. On the other hand, the fund has also inducted three new stocks – Galaxy Surfactants (0.79%), SBI Life (0.46%) and United Spirits (0.06%).
Franklin sees some movement in Cements. It’s farewell to Ambuja Cements (0.78%) after three short months and a tentative hello to Ramco Cements (0.11%).
Motilal Oswal has used this month to build up on two new investments made last month – Gujarat gas up by 0.89% (to reach 2.13%) and Tube Investments up by 1.09% (to go up to 3.52%). The fund, after substantially slashing the weight last month, has now completely exited it’s 0.43% position in Zomato.
Check out the other categories and what the funds there were up to: