Is it time to stop investing in large cap mutual funds?

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THE ECONOMIC TIMES Fri, Oct 09, 2020 | 08:10 AM IST Mutual Funds Newsletter

Is it time to stop investing in large cap mutual funds? Mutual fund Investors have been regularly to pointing out that large cap schemes (actively-managed ones) have been lagging ETFs and index schemes in various horizons. Once again, such a table is doing the rounds in various mutual fund forums. Equity mutual fund category witnesses net outflows in September Multi cap schemes were the biggest losers among equity mutual funds in September. The category witnessed a net outflow of Rs 1,143.86 crore, shows Amfi monthly data. Ready to say good-bye to 'dividend' plans in mutual funds? Dividend plans just got a new name. Securities and Exchange board of India, the market watchdog, on Monday asked mutual fund to rename dividend plans in both their existing as well as new schemes. The new norms for labelling the dividend options of mutual funds will be effective from 1st April 2021. Stocks are offering 30-40%, does it make sense to invest in mutual funds anymore? "Many of my friends have made 30-40% returns from stocks in the last few months. They are asking me to do the same instead of investing in mutual funds. What should I do?" asked Sneha. New Sebi norms make it easier to find risk-adjusted return of schemes: Swarup Mohanty of Mirae Asset Sebi has asked mutual funds to rename their dividend plans. The second measure, a comprehensive one, deals with product labelling and indication of risks associated with various categories. We reached out to Swarup Mohanty, CEO, Mirae Asset India, to decode the measures. Top Mutual Funds SCHEME NAME RATING 3 YRS(%) 1 YR(%) 6 M(%) 1 M(%) Axis Bluechip Fund Direct Plan-Growth ★★★★★ 11.50 7.56 23.57 4.57 Invest Now Canara Robeco Bluechip Equity Fund Direct-Growth ★★★★★ 10.87 15.85 30.40 4.47 Invest Now Axis Bluechip Fund-Growth ★★★★★ 10.08 6.28 22.79 4.45 Canara Robeco Bluechip Equity Fund Regular-Growth ★★★★★ 9.50 14.25 29.41 4.32 ICICI Prudential Sensex Index Fund Direct - Growth ★★★★★ 8.99 8.42 34.93 4.72 Invest Now Banking & PSU debt funds are a good option, says Mahendra Jajoo Historically bank deposits over the medium term have underperformed debt mutual funds in terms of returns. For an investor with a 2-3 year horizon, banking and PSU debt funds are a good option, says Jajoo, CIO of fixed income at Mirae Asset Management. Mutual fund 'Risk-o-Meter' to have 6 categories The Securities and Exchange Board of India (Sebi) has reviewed the guidelines for product labelling in mutual fund schemes based on the risk of their portfolios.

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New Fund Offers Fund Name Category Type Open Close Min Inv Nippon India Nifty Smallcap 250 Index Fund Reg-G Equity: Small Cap Open-ended 28 Sep 09 Oct 5000.00 Nippon India Nifty Smallcap 250 Index Fund Direct-G Equity: Small Cap Open-ended 28 Sep 09 Oct 5000.00 Nippon India Nifty Smallcap 250 Index Fund Direct-D Equity: Small Cap Open-ended 28 Sep 09 Oct 5000.00 Nippon India Nifty Smallcap 250 Index Fund Reg-D Equity: Small Cap Open-ended 28 Sep 09 Oct 5000.00 Principal Large Cap Fund Direct-D Equity: Large Cap Open-ended 28 Sep 12 Oct 5000.00 More >>

Forthcoming Dividend Fund Name Category Type Record Date Div Per Unit BNP Paribas Arbitrage Fund Reg-Adhoc D Hybrid: Arbitrage Open-ended 09 Oct 2020 0.05 BNP Paribas Arbitrage Fund Direct-Adhoc D Hybrid: Arbitrage Open-ended 09 Oct 2020 0.05 BNP Paribas Arbitrage Fund Reg-DQ Hybrid: Arbitrage Open-ended 09 Oct 2020 0.15 BNP Paribas Arbitrage Fund Reg-DM Hybrid: Arbitrage Open-ended 09 Oct 2020 0.05 BNP Paribas Arbitrage Fund Direct-DQ Hybrid: Arbitrage Open-ended 09 Oct 2020 0.15 * Funds with daily dividend distribution frequency options are excluded More >>

Weekly Mutual Funds Activity Date Equity ( Cr.) Debt ( Cr.) Gross Purchase Gross Sale Net Pur./Sale Gross Purchase Gross Sale Net Pur./Sale 07-10-2020 1030.42 2136.58 -1106.16 2100.47 1539.61 560.86 06-10-2020 1582.98 2995.48 -1412.50 5408.92 3822.55 1586.37 05-10-2020 1736.35 2272.95 -536.60 3200.62 3506.23 -305.61 01-10-2020 2306.73 2493.04 -186.31 5439.72 4827.29 612.43 30-09-2020 2562.43 2154.21 408.22 8500.57 4983.87 3516.70 29-09-2020 2365.12 2058.44 306.68 10445.57 8454.99 1990.58 28-09-2020 2004.83 1849.59 155.24 7858.34 7997.50 -139.16 Click here to view all WMF >>

Top Mutual Funds of the week (5-Star Rating) Scheme Name Nav Returns Ratings AUM(Cr.) Style Box Expense Ratio Equility Debt HDFC Index Sensex Fund-Growth 358.3493 3.83 1164.28 - 0.30 ICICI Prudential Sensex Index Fund - Growth 12.6423 3.83 108.37 - 0.30 ICICI Prudential Sensex Index Fund Direct - Growth 12.7338 3.83 108.37 - 0.10 Tata Index Sensex Regular 99.4360 3.82 22.85 - 1.00 Axis Bluechip Fund-Growth 32.1600 3.28 12702.54 - 1.70 Click here to view all TMFW (5 Star) >>

Top Mutual Funds (All Ratings) Scheme Name Nav Returns Ratings AUM(Cr.) Style Box Expense Ratio Equility Debt Quantum Tax Saving Fund Direct-Growth 51.5800 4.01 59.89 - 1.29 Quantum Tax Saving Regular - Growth 50.9900 4.00 59.89 - 1.79 Taurus Tax Shield Direct-Growth 86.7300 2.96 54.93 - 1.86 Taurus Tax Shield Regular-Growth 82.0600 2.94 54.93 - 2.41 HSBC Tax Saver Equity Fund Direct-Growth 38.7560 2.90 119.49 - 1.25 Click here to view all TMF ( All Ratings) >>

QUICK LINKS - MUTUAL FUND STATS 3 Best Funds- Category Wise Top Tax Saving Schemes Schemes with Lowest Expense Ratio Top Performing Schemes Latest Dividends Schemes with Highest Risk Adjusted Returns Top Star Rated Schemes AUM Monitor Category Performance Exchange traded funds

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