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 65% portfolio allocation to Mid Cap (101-250 by market cap size) stocks
Benchmark: Nifty Mid Cap 150 TRI with a change of 6.13% in August 2022 and a 1-year return of 11.82%.
All data as on: 30th August, 2022
AUM rankings remain consistent again this month.
Nippon has slashed it’s expense ratio massively by about 25%, to go down from 1.20% to 0.89%. Mirae has also made a cut, much more subtle of 7 basis points, to take it down a notch to 0.57%.
In terms of number of stocks also, the funds have been fairly stable.
In terms of performance, this category too is completely in the red for August. In the one year performance, HDFC, Kotak and SBI are the only ones to go beyond the benchmark. DSP remains the only fund to have a negative return for the one-year period.
Market Cap Allocation
There are no major market cap allocation shifts to talk about this month. Most funds have a minimal 1-2% shuffle within the categories.
In this category too, Axis remains the only fund at a sub-90% equity exposure level.
Top 5 Sectors
In Axis, almost all Software stocks have seen a reduction in exposure, either due to a fall in price or as part of a conscious decision. Hence, Software as a sector sees a lowered allocation from 10.19% to 8.52%.
Nippon sees not one, but two organic swaps. Leisure Services and Pharma are replaced by Consumer Durables and Retailing. Basically, all four sectors continue to hover around the 5%+ range.
There is an organic swap between Ancilliaries and Pharma in the Sundaram fund.
The organic swap continues trend continues in UTI where Software has edged out Banks for the fifth highest sectoral allocation.
Top 10 Stocks & Movement
Axis has one new miniscule position in Vinati Organics (0.06%).
DSP has a new position in AU Small Finance Bank (0.43%). On the other hand, after months of trimming it down, it has finally exited from Gujarat State Petronet (0.09%).
Nippon remains an action-oriented fund with four exits – PVR (0.59%), Dr. Reddy’s (0.31%), Ambuja Cements after three odd months (0.26%) and MRF after a short four month stint (0.15%). To balance things out, there are three new positions – Axis Bank makes a re-entry post February 2022 (1.52%), Max Healthcare (0.92%) and Kirloskar Oil Engines (0.17%).
Mirae has two new positions – Tata Communications (0.85%) and Sona BLW Precision Forgings (0.61%). It has also shown the door to two stocks, namely Hindustan Aeronautics (0.86%) and Kansai Nerolac (0.62%).
Franklin has one new entrant – Gland Pharma (0.69%). After months of snipping, it has also finally exited Cholamandlam Financial Holdings (0.03%).
Sundaram has two new stocks – Shriram City Union Finance (0.60%) and Sona BLW Precision Forgings (0.30%). There are also three exits this month – Tata Consumer Products (0.68%), Tata Power (0.45%) and NATCO Pharma (0.16%).
UTI has two new interesting positions – NHPC (0.78%) and Sundaram Fasteners (0.54%). It has also exited a 0.77% position in HPCL.
Check out the other categories and what the funds there were up to: