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 35% portfolio allocation to Large Cap (top 100 by market cap size) stocks and 35% allocation to Mid Cap (101-250 by market cap size) stocks. Remaining 30% is as per fund management.
Benchmark: Nifty LargeMid Cap 250 TRI with a change of -5.05% in June 2022 and a one-year return of 0.41%.
All data as on: 30th June, 2022
In terms of ranking, ICICI has come up a notch to displace Aditya Birla for the eighth spot.
HDFC has increased it’s margin with a 5 bps increase in expense ratio, sealing it’s place as the most expensive of the top 10 funds in the category at 1.26%.
Market Cap Allocation
Very little has changed in terms of market cap allocation this month.
One noteable change is that Axis has a more than 4% increase in Large Cap.
Also, with a slight further reduction, SBI is the only fund to be sitting on a sub-90% equity exposure.
Top 5 sectors
Sector ranking colour code
In Mirae, the fifth spot seems to be a in a perpetual roulette. This month, Insurance has been edged out by Consumer Durables.
In Canara Robeco, Auto makes it to the top Sectors while Finance which was at number 4 last month has been edged out.
Axis has taken a fairly big position of 1.04% in WABCO taking Auto Ancillaries to the fifth position with Industrial Products facing the heat and exiting top 5 sectors.
Aditya Birla has completely exited Biocon, leading to Pharma being knocked out of top 5 and replaced by Chemicals.
There is an organic swap between Petroleum and Finance in Sundaram, with former making it to the Top 5 this month.
Top 10 stocks
Mirae continues it’s love-hate relationship with HUL. In March it had increased the allocation from 0.25% in the previous month to 1.06% going up to 1.25% by May 2022. This month, the stock sees a major slash yet again to drop to a mere 0.11%. Cholamandalam Investment & Finance is another casualty with complete exit from the 0.09% position.
Kotak has taken a big new 1.54% position in Maruti Suzuki. Also, LIC has had just a short burst of life in the fund as it made an appearance of 0.27% in May and is completely exited out of, this month.
Thanks to the price shake-up in Bajaj Finance, there is a 0.85% reduction in it’s share in the Axis fund to drop to 8.22%. Mahindra & Mahindra’s allocation has almost doubled to reach 2.51%. There’s also a new 1.04% allocation to auto ancilliary company WABCO. There are other new additions to the portfolio as well. The foreign equity portfolio sees a 0.62% addition of semiconductor Advanced Micro Devices Inc. On the domestic side, Axis has added Reliance Industries (0.74%), Nestle (0.31%) and Bata (0.28%). The fund also has two small exits – Sansera Engineering (0.49%) and PB Fintech (0.03%).
SBI has quite a few changes to it’s name. Infosys sees an increase of 1.21%, to go up to 3.34%. There are six new stocks in their armoury – Tube Investments (1.44%), Ultratech Cement (1.36%), United Breweries (1.03%), Motherson Sumi Wiring (1.01%), Muthoot Finance (0.04%) and Ramco Cement (0.03%). Of these, the fund had exited a 0.99% position in Muthoot in February, which now makes a reappearance. The new entrants are balanced out by two big exits – Cholamandlam Investment and Finance (2.10%) and Kotak Mahindra Bank (1.42%). The latter is out after a mere three months in the portfolio.
DSP has slashed Axis Bank by 1.24% bringing it down to 3.95%. There are two tiny changes beyond this – exit from 0.44% in Kansai Nerolac and new 0.69% position in HPCL.
HDFC has four new stocks – NHPC (0.79%), IndusInd Bank (0.41%), Chambal Fertilizers & Chemicals (0.37%) and Hindalco (0.29%).
ICICI is another fund with many changes to boot. NTPC has been more than doubled to 2.87% and LIC Housing Finance has gone up to more than 6x to reach 0.93%. On the other hand, HDFC Ltd. has been cut down by 0.92% to come down to 2.62% and SBI Life has come down by 0.89% to touch 2.04%. There are three exits – Dabur (0.38%), Indian Bank after just two months (0.27%) and Cholamandlam Financial Holdings (0.18%). To make up for it, there is a whole host of new additions – Muthoot Finance (0.39%), Oberoi Realty (0.35%), Sun Pharma (0.25%), Karur Vysya Bank (0.20%), Interglobe Aviation (0.17%), MphasiS (0.14%) and Coal India (0.10%).
After last month’s hyper activity ABSL is relatively quieter this month. Two exits from the portfolio – Biocon (0.83%) finds itself out after a mere two months while NATCO Pharma (0.03%) is completely out now after a massive cut-down last month. There are also three new entrants – Schaeffler (1.02%), Endurance Technologies (0.69%) and United Breweries (0.39%).
A minor activity in Sundaram whereby they have exited from the 0.36% position in Apollo Hospitals.
Check out the other categories and what the funds there were up to: