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 minimum 80% portfolio allocation to Large Cap (top 100 by market cap size) stocks
Benchmark: BSE 100 TRI or Nifty 100 TRI with latter changing by -0.38% in January 2022 and giving a 1-year return of 29.12%
Data as on: 31st January, 2022
It was another mixed bag month for the category. Three of the funds were surprisingly in the green and Canara Robeco just about matched up to the benchmark. For the other 6, it was a dismal performance to say the least with Axis and Nippon being two of the back benchers.
When looking at the 1-year performance, yet again it is Axis and Nippon which have had a lower than benchmark (more than 1% lower) performance while the others have mostly matched up with a maximum 3-3.50% headway beyond the benchmark.
Market Cap Allocation
This has to be the most boring section for me to write. There is just about nothing to report on the market cap allocation front when it comes to the change from December 2021 to January 2022 in the Large cap category. But then, good investing is meant to be exactly that – boring.
Top 5 sectors
Banks and Software remain the two favourites for the fund category.
Within Banks, the allocation has increased for most of the funds by atleast a healthy 1.50%-3.50%, with HDFC being the exception where allocation has mostly remained static. Some bit of it can be attributed to the fact that the sector held steady in the volatility of January 2022. In fact, Bank Nifty went up by almost 7%.
The reverse story played out in Software with the allocation going down across the board. So much so, that Software became the third largest sector for HDFC as the allocation in Petroleum Products inched it out.
Petroleum products seems to have made headway in SBI also, inching out Pharma in that case for the spot of fifth highest sector.
Top 10 stocks
There has been a bit of a swap between Infosys and ICICI Bank with the latter taking the top stock spot from Infosys in two big funds – Axis Bluechip and Mirae Asset Large cap. But, in all probability it is price led and could be a short change.
Reliance Industries has slipped from the 6th to the 10th position in case of Axis Bluechip with a shaving of a massive 1.25% in allocation, despite the share price maintaining almost status quo.
In Franklin there is an interesting change. There was a time when Kotak Mahindra was a darling of the mutual funds. In Jan 2022, it’s allocation increased by 1.07% in Franklin to go from 7th spot to 4th spot.
As for Canara Robeco there is a slightly over 1.50% increase in allocation to SBI to move it from 8th to the 5th spot.
Check out the other categories and what the funds there were up to: