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 11.67% in July 2022 and a 1-year return of 7.69%.
All data as on: 29th July, 2022
In terms of AUM ranking, there’s no change.
Nippon has reduced its expense ratio by 4 basis points to still remain at a very high 1.20%.
In terms of number of stocks also, the funds have again been fairly stable.
In this category too, last months’ green dominated report card has been inverted. This month only 3 funds have outperformed the benchmark and the number goes up slightly to four for the 1-year performance.
Market Cap Allocation
This month, many funds including Axis, HDFC, Nippon and Mirae see a 3% or more shift towards Mid Cap allocation. It looks like the remaining action from the AMFI reclassification last month.
Top 5 sectors
In Nippon, there is an organic swap between Consumer Durables and Leisure Services, with the latter making the cut to the Top 5 Sectors this month.
Franklin sees an organic swap between Consumer Non Durables and Cement & Cement Products, with the latter featuring in the Top 5 Sectors this month.
Organic swaps seem to be the order of the day with Chemicals knocking out Auto Ancilliaries in Sundaram.
Top 10 stocks & Movement
HDFC has substantially increased its’ position in Coforge zooming up from 0.26% to 1.66%. There are also three exits – RITES (0.43%), Blue Star (0.42%) and WABCO India (0.27%).
Axis has a new 0.29% position in SKF India. There are also two exits – Divi’s Labs (0.20%) and Gujarat Fluorochemicals (0.04%).
Nippon has drastically cut down it’s allocation in Dr. Reddy’s Labs from 1.68% to 0.31%. The fund has four new stocks – J.K. Cement make a re-entry after February (0.42%), Poonawalla Fincorp (0.39%), Ajanta Pharma (0.23%) and NMDC (0.22%). There’s also a long line of exits – Oil India (0.72%), Macrotech Developers (0.48%), ICICI Prudential Life Insurance after a mere four months (0.41%), Lux Industries (0.17%), Fine Organic (0.13%) and LIC after two miniscule months (0.12%).
Mirae has reduced it’s position in Hindustan Aeronautics by 0.88%, bringing it to less than half at 0.86%. There are two new entrants – HPCL (0.86%) and NALCO (0.60%). The fund has also exited it’s 0.67% position in Jyothy Labs.
Franklin has exited three stocks – Infosys (0.95%), Atul Ltd. (0.55%) and RBL Bank (0.15%). To make up for it, there are four new entrants – Coforge (1.00%), Escorts after a gap of 3 months (0.56%), Zomato (0.43%) and Indusind bank (0.42%).
Sundaram has two new entrants – United Breweries (0.74%) and APL Apollo Tubes (0.15%).
UTI has exited it’s 0.23% position in Kansai Nerolac.