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 4.33% in March 2022 and a one-year return of 22.90%.
All data as on: 31st March, 2022
This is personally one of my favourite fund categories. I have often been caught saying like an ad salesperson – stability of large cap, growth potential of mid caps.
But, when you look at the AUMs, you will see it’s not much of a favourite of investors apart from Mirae. In fact, it really is Mirae Emerging Bluechip which first got the AMC much popularity. Even now investors with high value SIP refuse to let go of it, concentration risk in the portfolio be damned.
When it comes to performance, it’s a mixed bag with Kotak, Axis, SBI and HDFC beating the benchmark for the month. However, the report card turns much better when you look at the one-year performance. In that respect, only Mirae, Kotak, DSP and Aditya Birla have catching up to do.
As for the AUM, Axis sees a neat jump of almost Rs. 1,500 Crores (25% of the AUM!) taking it up two spots in this small category anyway.
Market Cap Allocation
It looks like Axis is set to hog all the analysis for the category this month. This month sees about an 8% reduction in equity exposure with a 4-odd% trim in foreign equity, about 8% reduction in Mid cap and an almost 2% increase in Large Cap. In fact, that makes it the only fund to be sitting on 80s, with the next fund having atleast about 7.50% more in terms of equity exposure.
Rest of the funds have got nothing good enough to offer worth mentioning.
Top 5 sectors
There is very little in terms of sector shift this month. None of the below two changes have been brought about by any major stock change or shift but rather minor wriggles here and there.
In Kotak, Pharmaceuticals has replaced Cement & Cement Products in the fifth spot. In DSP, last month Consumer Non Durables and Industrial Products were equal to the t. Now though, there is a slight gap with Consumer Non Durables being the sole sector on the fifth spot.
Top 10 stocks
While the world seems to be slashing their allocation in HUL, Mirae has gone ahead to increase it to more than 4x over last month zooming it from 0.25 to 1.06!
Canara Robeco has made some visible changes, too. SBI gets a 0.76% trim to go down to 3.21% while Tata Motors is slashed to less than half ending up with an allocation of 1.05%. The fund has also completely exited their 0.96% position in Britannia, while taking a big new 1.50% exposure to Indian hotels.
DSP has trimmed HCL Tech by 0.87% to bring it down to 2.21%. The fund has also completely exited it’s 0.93% position in Apollo Tyres while taking a big 1.32% exposure to Coforge.
Aditya Birla seemed to be in the mood for spring cleaning. Some existing positions that saw a substantial change were Reliance Industries (increase by 1.00%), SBI (trim of 0.81%) and Crompton Greaves Consumer Electric (reduction of 1.04%). They have also completely exited from HCL Tech (1.53%) and V-Guard (0.92%). Simultaneously, they welcome into the fold Sun Pharma (1.49%) and Tata Steel (1.44%).
SBI made quite a few changes as well. Increase by 1.29% in Reliance Industries to reach 4.54%. Complete exits from SBI Life Insurance (1.58%) and Ahluwalia Contracts (0.80%). They also made some big, bold, new additions – Tata Steel (1.70%), Kotak Mahindra Bank (1.37%) and Bandhan Bank (0.96%).
Axis too see three stocks getting a biggish haircut – Tata Elxsi (-1.27%), Cholamandlam Investment and Finance (-0.83%) and Torrent Power (-0.78%). In a strange turn of events, unlike some of the other funds of the AMC, the allocation to Avenue Supermarts has actually more than doubled to arrive at 3.49%. Then there is also this new position of 0.91% in Balrampur Chini Mills.
HDFC has two main changes to be mentioned. Adani Wilmar is reduced by 0.83% to come down to less than half, 0.53%. Max healthcare, on the other hand, is now at more than 4x with an increase of 0.93% to get to 1.19%.
Check out the other categories and what the funds there were up to: