Large Cap Funds – July 2022

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 9.41% in July 2022 and giving a 1-year return of 9.85%

Data as on: 29th July, 2022

Summary

large-cap-funds-summary-july-2022

In terms of AUM ranking, the tussle between Aditya Birla and HDFC continues with the former slightly trumping ahead this month.

Only Mirae has a noteworthy change in the expense ratio which has dropped by 7 basis points to land at 0.51%.

ICICI and Nippon seem to have engaged in a trimming exercise bringing their number of stocks down from 74 to 70 and 60 to 55 respectively

In terms of performance, the one month report card seems to have completely reversed. Last month only two funds under performed the benchmark, while this month only two have bettered it. This shows in the one-year performance also where the number of outperformers has reduced from five to three.

Market Cap Allocation

large-cap-funds-market-cap-july-2022

There is no noteworthy change in market cap allocation this month.

Axis, yet again, remains the only fund with a sub-90% equity exposure.

Top 5 sectors

large-cap-funds-sector-july-2022

Axis has cut down the TCS position by 1.65% bringing it down to 4.50% which has led to Software slipping to the third highest sector. The fund has also reduced it’s allocation to Reliance Industries from 5.57% to 3.60%. Simultaneously, the fund sees an increase in the HUL exposure from a tiny 0.10% to a much bigger 1.53%, after a six month break. This has resulted in Consumer Non Durables replacing Petroleum Products in the Top 5 Sectors.

Mirae sees an organic swap between Consumer Durables and Consumer Non Durables with the former finding a place in the Top 5 Sectors.

Nippon sees a bit of a sectoral shuffle. In Software, the two biggest holdings have been trimmed – HCL Tech from 4.87% to 3.56% and Infosys from 5.52% to 4.63%. This has taken the Software allocation from 13.51% to 10.76%, one rung down to the third highest sector. The fund also sees an organic swap between Auto and Leisure Services with the former inching it’s way into the Top 5 Sectors.

Canara Robeco has also taken the trimming shears to Reliance Industries with the allocation cut down from 9.01% to 6.60% taking Petroleum Products two rungs down to the fifth highest Sector. The fund has also increased it’s allocation Bajaj Finance by 0.95% leading to Finance edging out Auto in the Top 5 Sectors.

Top 10 stocks & Movements

large-cap-funds-stocks-july-2022

Some of the changes in Axis like TCS, Reliance and HUL have already been mentioned above. Bajaj Finance sees a jump of 1.59% (less than the stock price increase of 33%) to spike up to 9.50%. Avenue Supermarts has been increased by 0.78% to go up to 7.18% while Bharti Airtel has a haircut of 0.85% to come down to 1.59%. The fund also has a new 0.30% position in Siemens.

ICICI has, to the contrary, beefed up it’s Reliance Industries position by 0.95% taking it up to 8.17%. Simultaneously, it has cut down Bharti Airtel by 0.76% landing at 4.71%. The fund has also added 0.28% in the US stock Cognizant Technology Solutions and 0.01% in the domestic Bharat Forge. On the other hand, there are quite a few minor exits – Bank of Baroda (0.49%), HUL (0.24%), Mannapuram Finance (0.02%), Motherson Sumi Wiring India Limited (0.01%), Gillette India Ltd (0.01%).

HDFC has also cut it’s Reliance Industries position by 0.97%, getting it down to 8.29%.

Nippon has quite a few substantial changes. Three funds see a beefed up allocation – Bajaj Finance by 1.47% (going up to 3.26%), Reliance Industries by 0.99% (up to 5.89%), and Zomato by 0.85% (up to 1.16%). The fund has also trimmed a few stocks – apart from the earlier mentioned two software stocks, ITC has been reduced by 0.77% (down to 5.17%). New additions include Britannia (0.77%), Sapphire Foods (0.39%) and Zensar Technologies (0.35%). To complement it, there is a string of exits – BPCL (0.96%), HDFC Life (0.52%), ONGC (0.43%), LIC (0.42%), L&T Infotech (0.28%), United Breweries (0.14%), United Spirits (0.14%) and Schaeffler India (0.06%).

Apart from Reliance Industries and Bajaj Finance mentioned above, there are three more substantial changes – ICICI Bank is up by 0.93% to 9.49% while two software stocks have been trimmed. HCL Tech is trimmed by 0.89% to land at 0.70% and TCS is reduced by 0.79% to 2.92%

Franklin has one major change. It has completely exited a 2.21% position of Bajaj Auto.

Check out the other categories and what the funds there were up to:

Flexi Cap Funds – July 2022

Multi Cap Funds – July 2022

Large & Mid Cap Funds – July 2022

Mid Cap Funds – July 2022

Small Cap Funds – July 2022

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