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 -4.86% in June 2022 and giving a 1-year return of 1.08%
Data as on: 30th June, 2022
In terms of AUM ranking, HDFC Top 100 has just about inched up ahead of Aditya Birla Frontline Equity to make it to the top 5 funds by AUM.
Three funds have slight changes in expense ratios – Axis has increased by 4 bps to go up to 0.52%, UTI Mastershare has reduced by 7 bps to come down to 1.03% while Canara Robeco has increased by 4 bps to go up to 0.38%.
Axis seems to have had a bit of a trim bringing down it’s number of stocks from 41 to 37.
In terms of performance, only two funds underperformed the benchmark last month. Although for the one-year performance that number goes up to five.
Market Cap Allocation
There is a bit of a shuffle between Large Cap and Mid Cap allocations in SBI, ABSL and UTI to the tune of 2-4%. But, some of it can be attributed to the reclassification that we see.
Axis remains the only fund with a sub-90% equity exposure.
Top 5 sectors
This month, Large Cap funds are doing what they are supposed to – being boring.
With a new 0.40% position in Mahindra & Mahindra and an almost 0.50% increase in the Maruti Suzuki allocation, Autos is the fifth largest sector for Canara Robeco, replacing Finance.
Top 10 stocks & Movements
Axis sees Maruti Suzuki holding increase to almost 3x, reaching 1.55%. The fund is tentatively reaching out to HUL again with a 0.10% new allocation, having exited the stock in November 2021. The trimming means five tiny positions have been exited out of – Tata Motors (0.21%), LIC (0.21%), Tata Steel (0.18%), Hindalco (0.12%) and Bharti Airtel (0.08%).
SBI has made two small exits – Nestle India (0.26%) and Power Grid (0.18%).
ICICI exited it’s 0.03% position in Ashok Leyland. They also seem to be experimenting with some new stocks in the tail – Muthoot Finance (0.11%), Divi’s Laboratories (0.05%), Mannapuram Finance (0.02%) and Gillette India (0.01%).
ABSL has exited a wee 0.09% position in Wipro which was anyway there for a mere two months.
HDFC has one noticeable movement – exit from a 0.29% position in NHPC.
Nippon can’t seem to make up it’s mind about DFL. The stock found a place in the portfolio from February to April in the range of going to 0.16% to 0.04%. May it spent on the bench and June, it’s back in the portfolio with a 0.44% position. Three stocks find themselves out – ACC (0.40%) which had just made it’s way in April, Bharti Airtel (0.39%) and BEML (0.08%).
After a three month hiatus, Mahindra & Mahindra is back in the Canara Robeco portfolio with a 0.40% new position.
Franklin has some noteworthy changes. L&T gets a trim of 1.49% to land at 1.05% while Zomato has dropped by 1.03% to go to 0.95%. On the other hand, HUL is beefed up by 0.88% (to reach 2.02%) and TCS is up by 1.16% (settling in at 4.13%). It has also exited 0.98% position in United Spirits. This is another fund where LIC (0.14%). finds itself there only in the post-listing and out this month. There’s also a brand new 0.32% position in Coforge.
Check out the other categories and what the funds there were up to:
Large & Mid Cap Funds – June 2022