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 Small Cap (251 and beyond by market cap size) stocks
Benchmark: Nifty Small Cap 250 TRI with a change of 8.92% in July 2022 and a 1-year return of -2.69%
All data as on: 29th July, 2022
While there is no change in the AUM ranking, ICICI has raised it’s expense ratio by 7 basis points to reach 0.80%.
Nippon has slightly trimmed it’s portfolio by five stocks, to still have a long string of 144 stocks.
Although the one-year report card remains spotlessly green, for July it’s a perfectly balanced scorecard with five funds beating the benchmark and five underperforming it.
Market Cap Allocation
ICICI has reduced it’s Small cap allocation by 2.07% and overall equity exposure is cut by 2.97% making it the third fund in the category to be at a sub-90 level.
Top 5 sectors
Nippon has almost doubled it’s allocation to SBI (now at 1.40%) leading to Banks edging out Auto Ancillaries from the Top 5 Sectors.
There is a 0.89% reduction in the allocation to Birlasoft which has led to Software being replaced by Consumer Durables in the L&T fund.
In Franklin, there is an organic swap between Software and Consumer Non Durables, with the latter making the cut this month.
ICICI has increased it’s allocation in Mold-Tek packaging by 1.80% which has shot up Industrial Products to the third highest sector.
Top 10 Stocks & Movement
Nippon has five new entrants – RITES (0.60%), Zomato (0.34%), CESC (0.19%), City Union Bank (0.11%) and Gland Pharma (0.10%). With more than 140 stocks, the fund also found it easy to exit out of ten – United Spirits (0.42%), AIA Engineering (0.30%), Zee Entertainment (0.24%), Oracle Financial Services (0.20%), InterGlobe Aviation (0.18%), Tata Chemicals (0.15%), JK Lakshmi Cement (0.09%), Campus Activewear (0.06%), PTC India (0.04%), Nuvoco Vistas Corporation (0.04%).
SBI has two exits – J.K. Cement (0.88%) and MTAR Technologies (0.16%).
Axis has two new barely-there positions – Bata India (0.03%) and V-Guard (0.01%).
DSP has cut down it’s allocation in Tube Investments by 0.94% to go down to 2.44%. The fund has also exited it’s 0.11% position in Butterfly Gandhimathi Appliances.
L&T has exited it’s 0.52% position in Dollar Industries. Simultaneously, it has added 0.34% in Timken India and 0.52% in Kec International.
Franklin has added 0.16% in Tega Industries and 0.05% in Ceat.
Apart from the Mold-Tek beefing up mentioned above for ICICI, there is a 0.97% reduction in Dixon Technologies landing it at 2.07%. The fund has also exited two stocks – Heidelberg Cement India (0.70%) and Crafstman Automation (0.60%).
Canara Robeco has added a big 1.13% allocation to Avenue Supermart.