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Here are funds that survived the market sell-off

Nikhil Desai
/ Categories: DSIJ Mindshare, Mutual Fund
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Post Union Budget 2018, the Indian market has witnessed a bloodbath in the street and corrected like anything. The Nifty in last one week has crashed drastically and is down by more than 1,000 points. This was mainly due to weak global cues which led a sharp correction in the market.

The mutual fund industry has also witnessed the impact of this crash in the last week. Almost all the equity schemes from Large cap and Mid cap category have also turned red and seen negative returns. However, some schemes have managed to limit this impact and survive.

According to data analysed by us, Equity-large cap and Equity-Mid cap categories have given an aggregate return of -4.65 and -4.14 returns, respectively in the last week starting from February 1, 2018.

In the Equity-large cap category, we have analysed 80 schemes where three schemes, BNP Paribas Focused 25 Equity Fund, ICICI Prudential Select Large Cap Fund and IDBI Focused 30 Equity Fund have managed to contain their fall. These funds have better returns than their respective category. Going ahead, we have analysed 49 schemes from Equity-Mid cap category where ICICI Prudential Dividend Yield Equity Fund, ICICI Prudential Midcap Fund, LIC MF Midcap Fund have performed better than their respective category.

To analyse the reason behind the survival of these schemes and their performance, we have gone through the portfolios of these schemes to analyse the sectoral allocation of the assets. Accordingly, the major part of the portfolios of these schemes is allocated to the financial sector, technology sector and Energy Sector. This strategic sectoral allocation has played well for these schemes as seen in their returns. Going ahead, with the improving global cues, the Indian market is also expected to recover and thereby the mutual fund schemes.

      

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