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 25% each in Large, Mid and Small cap stocks
Benchmark: Nifty 500 50:25:25 TRI with change of -5.40% in May 2022 and a one-year return of -0.22%
Data as on: 30th June, 2022
While there is no change in the AUM ranking, two funds see an increase in their expense ratios. ICICI has increased by 4 bps to settle at a very pricey 1.09%. Aditya Birla has increased it’s expense ratio substantially from 0.31% to 0.55%!
Sundaram as a fund seems to have undergone some trimming, reduced from 72 to 64 stocks.
The returns report card is pretty decent with only three funds have under performed the benchmark last month.
Market Cap Allocation
As mentioned earlier, considering it’s the month post reclassification, I am noting only the bigger changes in allocation.
Invesco sees some big changes – about 4.57% reduction in Mid Caps with a simultaneous 7.09% increase in Large Caps.
Sundaram sees a similar trend with an almost 5% reduction in Mid Caps and a 6.12% increase in Large Cap allocation.
Top 5 sectors
In SBI, Banks are now the second largest sector with a HUGE almost 6% reduction, thanks to two big exits. More on that in the stock movement section.
Axis has increased it’s allocation to Bata from a tiny 0.10% to a much bigger 1.50%. Resultantly, Consumer Durables has edged out Construction from the Top 5 Sectors.
Quant has exited its’ 0.33% position in Repco Home Finance which has led to Petroleum Products edging out Finance in the Top 5 Sectors.
In Sundaram, Reliance sees an increase of 1.87% taking it up to 5.73% while the fund has completely exited from it’s 0.79% position in Timken India. So, Petroleum products has replaced Industrial products as the fifth largest sector.
Top 10 stocks & Movements
Nippon has three new additions – 3M India (0.39%), Sapphire Foods (0.25%) and Torrent Pharma (0.11%). There’s also a small exit from DCB Bank (0.15%).
The young SBI Fund, listed as recently as March this year, still seems to be in a very experimental phase. As mentioned, Banking has been a hotbed of action. Two big exits – HDFC Bank (3.52%) and Axis Bank (3.52%) and a new entrant – SBI (1.62%). Three funds see a substantial increase in positions – Divi’s Laboratories by 1.80% up to 4.15% , ICICI Pru Life Insurance up by 1.36% up to 3.23% and TVS Motors up by 0.91% taking it to numero uno position of 6.13%.
ICICI takes a new 0.43% position of Hindalco and exits 0.42% in SAIL, so all in the same family of Metals & Mining.
In Axis, apart from the 1.50% increase mentioned above for Bata, Galaxy Surfactants sees a 0.98% increase taking it up to 3.03%. This is another fund where LIC (0.74%) makes a quick exit and the clutter of a barely-there 0.01% allocation in Sudarshan Chemicals is also cleared up. There are three new positions – TVS Motors (1.14%), Container Corporation (0.95%) and Maruti Suzuki (0.50%).
HDFC has two new entrants – Eicher Motors (0.60%) and MTAR Technologies (0.68%).
For Kotak, there is a 1.77% increase in the Maruti Suzuki allocation taking it up to 6.08% while Ambuja Cement is reduced by 0.89% to drop to 1.53%. There is one new entrant in Kansai Nerolac (1.02%) and one exit, namely Jindal Steel & Power (0.90%).
ABSL has reduced it’s allocation to Hindustan Aeronautics by 0.98% to settle in at 1.10%. There are three new entrants – Bajaj Finance (0.90%), Tata Motors (0.63%) and United Spirits (0.43%) and a sole exit – IFB Industries (0.33%).
Quant has yet again reduced it’s allocation to Vedanta, this time by 1.79% taking it down to 4.18%. On the other hand, Anupama Rasayan sees a big increase by 0.94% (taking it up to 1.15%). As the name suggests, the fund remains pretty active. Five new entrants – NTPC (0.44%), ONGC (2.11%), ICICI Lombard (1.14%), Tata Coffee (0.53%) and Tata Power (0.38%). To balance it out, there are also five exits – Coal India (2.50%), Indiabulls Real Estate (0.77%), Prestige Estates (0.68%), T.V. Today (0.27%) and Shilpa Medicare (0.15%). The last two graced the portfolio only for a month.
Invesco has four new positions to it’s name – Bharti Airtel (1.26%), NTPC (1.03%), Mahindra & Mahindra (0.89%) and Hindalco (0.73%). The fund also has two small exits to it’s name – Repco Home Finance (0.33%) and Campus Activewear (0.01%). The last one is also a one-month wonder.
Sundaram would have won the most action-packed fund award for the category this month. It is buzzing. Increased allocation in five stocks – HDFC Bank by 2.20% (now at 4.28%), Reliance Industries by 1.87% (now at 5.73%), 3M India up by 1.34% (now at 2.15%), Infosys up by 1.14% (now at 4.04%) and SBI up by 0.89% (now at 4.29%). Bank of Baroda sees quite a cut-down of 1.12% bringing it down to 0.48%. That’s not all. Two new entrants – WABCO (0.89%) and Anupam Rasayan (0.41%). And a whole host of exits, ten to be specific! HDFC Ltd. (2.34%), Max Financials (1.74%), Federal Bank (0.93%), Timken India (0.79%), Zydus Wellness (0.54%), Minda Industries (0.46%), one-month wonder LIC (0.38%), Indoco Remedies (0.25%), Relaxo Footwears (0.14%) and UTI AMC (0.04%).
Check out the other categories and what the funds there were up to:
Large & Mid Cap Funds – June 2022