Nifty 17196.7 (-1.18%)
Sensex 57696.46 (-1.31%)
Nifty Bank 36197.15 (-0.85%)
Nifty IT 35848.05 (-0.86%)
Nifty Financial Services 17779.5 (-1.13%)
Adani Ports 737.45 (-0.22%)
Asian Paints 3110.45 (-2.21%)
Axis Bank 673.00 (-0.46%)
B P C L 385.90 (1.86%)
Bajaj Auto 3287.85 (-1.22%)
Bajaj Finance 7069.25 (-1.55%)
Bajaj Finserv 17488.70 (-1.52%)
Bharti Airtel 718.35 (-1.94%)
Britannia Inds. 3553.75 (-0.69%)
Cipla 912.05 (-1.00%)
Coal India 159.75 (0.28%)
Divis Lab. 4757.05 (-0.42%)
Dr Reddys Labs 4596.50 (-1.42%)
Eicher Motors 2455.55 (0.16%)
Grasim Inds 1703.90 (-1.16%)
H D F C 2771.65 (-1.29%)
HCL Technologies 1171.40 (-1.12%)
HDFC Bank 1513.55 (-0.80%)
HDFC Life Insur. 690.95 (-2.03%)
Hero Motocorp 2462.45 (-0.41%)
Hind. Unilever 2343.65 (-1.66%)
Hindalco Inds. 424.65 (-1.72%)
I O C L 122.20 (1.28%)
ICICI Bank 716.30 (-0.84%)
IndusInd Bank 951.15 (0.59%)
Infosys 1735.55 (-0.73%)
ITC 221.65 (-1.69%)
JSW Steel 644.55 (-0.34%)
Kotak Mah. Bank 1914.20 (-2.55%)
Larsen & Toubro 1801.25 (0.67%)
M & M 836.95 (-1.48%)
Maruti Suzuki 7208.70 (-1.59%)
Nestle India 19321.35 (-0.93%)
NTPC 127.00 (-1.32%)
O N G C 145.90 (1.32%)
Power Grid Corpn 206.10 (-3.92%)
Reliance Industr 2408.25 (-3.00%)
SBI Life Insuran 1165.95 (-1.86%)
Shree Cement 25914.05 (-1.43%)
St Bk of India 473.15 (-0.81%)
Sun Pharma.Inds. 751.80 (-1.89%)
Tata Consumer 774.30 (0.14%)
Tata Motors 480.10 (0.21%)
Tata Steel 1118.00 (0.50%)
TCS 3640.45 (-0.07%)
Tech Mahindra 1593.30 (-2.23%)
Titan Company 2369.25 (-0.72%)
UltraTech Cem. 7332.45 (0.13%)
UPL 712.75 (2.08%)
Wipro 640.75 (-0.94%)

These mutual fund schemes got the most investor money in Q2. Do you own any?

by 5paisa Research Team 09/11/2021

The Indian mutual fund industry has recorded strong growth in the recent past as stock markets recovered rapidly since the crash in March 2020 and as more and more investors sought to deploy their money in equities instead of relying only on fixed-income products.

In fact, latest data from the industry group Association of Mutual Funds in India (AMFI) show that the value of assets managed by the MF industry has increased almost 35% to Rs 37.41 trillion in September 2021 from Rs 27.74 trillion in September 2020.

Within this, the share of equity-oriented MF schemes has risen to 47.2% of the total industry assets in September 2021 from 40% in September 2020. This indicates an increase in the number of investors in such schemes as also growth in the value of assets held by these schemes.

However, there is a clear divergence in the MF schemes that have grown their assets under management (AUM) and those with smaller AUMs than before. So, which are these schemes?

Mutual funds launched 32 open-ended and 11 close-ended schemes during the three months through September. These include 13 equity schemes, 18 debt schemes, six exchange-traded funds (ETFs) and one hybrid scheme. These schemes mobilised a total of Rs 49,283 crore, AMFI data show.

Overall, equity schemes garnered a total of Rs 39,927 crore during the second quarter of the ongoing fiscal year on a net basis while hybrid schemes mopped up a net amount of Rs 41,774 crore.

A closer look at the data shows the schemes that received the highest inflows. Here are those schemes:

Highest recipient

The rapid rise in the stock markets has prompted some investors to exercise caution. This was evident from the tilt towards hybrid schemes, which invest in both equity and debt.

And it was a fund in this category that received the highest inflows during the quarter. The scheme was SBI Balanced Advantage Fund, which mopped up Rs 14,500 crore during its NFO in August. In fact, the scheme’s AUM crossed Rs 20,000 crore last month as it attracted more investors even after the NFO.

Large-cap funds

The total assets in this category rose to Rs 2.18 lakh crore as of September 30, 2021, from about Rs 1.95 lakh crore three months before, AMFI data show. This segment accounts for nearly 17% of the open-ended equity fund assets.

In this category, Axis Bluechip received the most net inflows—Rs 1,518 crore—in the July-September period. It was followed by Canara Robeco Bluechip Equity and Mirae Asset Large Cap with Rs 1,019 crore and Rs 631 crore, respectively, according to Morningstar data. All three funds are among the top performers in the category.

Flexi-cap funds

This is the second-largest segment among open-ended equity funds, barring ETFs. The total assets in this category rose to Rs 2.15 lakh crore as of September 30, 2021, from about Rs 1.76 lakh crore three months before.

ICICI Prudential Flexi Cap topped the charts in this category by garnering Rs 10,520 crore in its new fund offering.

Nippon India Flexi Cap collected Rs 2,860 crore in its NFO while existing star performer Parag Parikh Flexi Cap mopped up Rs 2,873 crore.

Mid-cap funds

The total AUM of mid-cap schemes climbed to Rs 1.53 lakh crore as of September 2021 from Rs 1.35 lakh crore at the end of June. This is 12% of the open-ended equity MFs.

Kotak Emerging Equity led the segment with net inflows of Rs 922 crore, according to Morningstar data.

Axis Midcap Fund, a favourite of investors, mopped up Rs 879 crore, while star performer PGIM India Midcap Opportunities Fund received Rs 775 crore.

Small-cap funds

The total AUM of this category increased to Rs 98,014 crore at the end of September 2021 from Rs 85,957 crore three months before.

PGIM India Small Cap was the top recipient in this category as it mobilised Rs 910 crore in its NFO.

Axis Small Cap came second with net inflows of Rs 541 crore, followed closely by Kotak Small Cap with net inflows of Rs 513 crore.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Why do you make irrational financial decisions?

Heading: Why do you make irrational financial decisions?
by 5paisa Research Team 09/11/2021

Behavioral finance is the study of the effects of psychology on investors while taking financial decisions.

There are many instances where emotion and psychology influence our decisions, causing us to behave in unpredictable ways or contrary to conventional finance theories.

Our day to day lives are full of such behaviours. A common example of such decision making is credit cards vs paper money. For the same amount of payment, more pain is experienced when one has to shell out cash. Another example of irrational financial behaviour is buying lottery tickets with a one in a million chance of winning. Behavioural finance seeks to combine behavioural and cognitive psychological theories with conventional economics and finance to provide explanations as to why people make irrational financial decisions.

Following are the finance behavioural concepts:

Herd behaviour: When sheep herd, they move together at the same time. Usually, one or two leaders start, then momentum builds as more and more join until a large group is formed, all heading in the same direction. A similar idea holds true when investors follow the herd. The investors follow others rushing to buy or sell shares, debts, or any other investment. However, simply going with the herd is not likely to be a well-thought investment strategy as the followers can end up paying the price.

Anchoring: When formulating a financial decision or prediction, you have to start somewhere. The initial price or the number you pick turns out to have an enormous influence on your financial conclusion. For example, we walk into a car lot and note the sticker price, and we use that number as our starting point for negotiations. We know that we can buy the car for that amount, and we start the process of seeking a better price.

Mental accounting: Mental accounting refers to the tendency for people to separate accounts based on a variety of subjective criteria, like the source of the money and intent for each account. According to the theory, individuals assign different functions to each asset group, which has an often irrational effect on their consumption decisions and other behaviours.

Gambler’s fallacy: In the gambler’s fallacy, an individual erroneously believes that the onset of certain random events is less likely to happen, following an event or a series of events. This line of thinking is incorrect because past events do not change the probability that certain events will occur in the future. For instance, consider a series of coin flips that have landed with the ‘heads’ side up. Under the gambler’s fallacy, a person might predict that the next coin flip is more likely to land with the ‘tails’ side up.

Prospect theory: According to the theory, an average individual is more loss-sensitive. Losses have more emotional impact than an equivalent amount of gains. For instance, if you are gaining Rs 50 or Rs 100 and losing Rs 50, then both should have the same utility as in both cases, the net gain is Rs 50. However, despite the fact that you still end up with Rs 50 gain, in either case, most people view a single gain of Rs 50 as more favourable than gaining Rs 100 and losing Rs 50.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Multibagger Alert: This energy exchange business has quadrupled investor wealth with a return of 301% in the past year!

 Multibagger Alert: This energy exchange business has quadrupled investor wealth with a return of 301% in the past year!
by 5paisa Research Team 09/11/2021

On a YTD basis, the stock has given a return of 242.89%.

The stock of India’s premier electricity exchange, Indian Energy Exchange (IEX) has given investors stellar returns of 301.72% over the last year. The share price stood at Rs 194.35 on November 6, 2020, and since then, the stock has more than quadrupled investor wealth.

Revenue for the quarter came in at Rs 110.4 crore, up 55.6% YoY and 21.1% QoQ. IEX registered an EBIDTA margin of 86.1% vs 82.2% QoQ, which is the highest ever in the company’s history. Absolute EBIDTA came in at Rs 95 crore as compared to Rs 74.9 crore in the last quarter. The company saw strong volumes in August and September whereas July witnessed a slight dip led by the second wave. PAT came in at Rs 77.4 crore, up 74.6% YoY & 24.6% QoQ.

Indian Energy Exchange Ltd engages in the power exchange business and provides an automated platform for the trading of electricity and related products. It facilitates the exchange of power between the generation (like NTPC, Tata Power, Adani Power) and energy distribution companies. It has a near-monopoly in this business, commanding a market share of 95% in the power exchange market. At present, only two companies are engaged in the business of power exchange - IEX and Power Exchange India Ltd (PXIL).

IEX’s primary revenue sources include transaction fees (about 84% of revenues) and annual subscription fees (5% of revenues). Since the commencement of its business in 2008, the trading volume on its exchange has been increasing at a staggering rate of over 32% CAGR, which has driven the top-line of the company.

Shares of IEX have seen strong traction over the last year due to the green energy theme playing out in the markets, as well as their near-monopoly status (with nearly 95% market share). The addition to the F&O segment in the latest series also came as an important tailwind.

Looking ahead, the company’s prospects remain positive given its clean balance sheet, near monopoly, regulatory tailwinds and introduction of newer products, which is expected to drive strong double-digit volume growth in the medium term.

At 12.20 pm on Tuesday, the stock is trading at Rs 787.55, up by 0.87% or Rs 6.80 per share on BSE. The 52-week high of the scrip is recorded at Rs 956.15 and the 52-week low at Rs 194.80 on the BSE.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Nemish Shah - The man who took Infosys public!

Nemish Shah - The man who took Infosys public!
by 5paisa Research Team 09/11/2021

Here's a peek into the investment strategy of Nemish Shah, co-founder of ENAM Holdings.

Nemish Shah is an ace-investor who completed his Bachelor’s in Commerce (B.com) from Lala Lajpat Rai College, Mumbai University in 1977. He is the director and co-founder of ENAM Holdings, a privately owned and managed investment house.

Initially, ENAM was a broking entity, and it soon forayed into the investment banking profession. Throughout these developments, ENAM adhered to investment research as its backbone. In 2010, ENAM merged its investment banking and broking operations with Axis Bank in a deal valued at Rs 2,067 crore. At present, Shah manages the firm’s treasury operations and is focused on growing its proprietary capital, under ENAM Holding’s Pvt Ltd.

A little-known fact: Infosys, a leading Information technology giant, was taken public by ENAM in 1993. And at the time of issuance, the shares of Infosys were undersubscribed. It was Nemish Shah and Vallabh Bhanshali, co-founder of ENAM, who convinced people to invest in Infosys.

Investment philosophy of ENAM Holdings

ENAM holdings have a value-based and relationship-oriented culture and investment philosophy. The firm follows a fundamental, bottoms-up research approach for identifying companies with sustainable competitive advantages and execution capabilities. It gives huge importance to the quality of management teams and governance frameworks of the companies that it invests in.     

Furthermore, ENAM Holdings is an ethical firm that does not invest in businesses that involve intoxication, gambling or anything that harms living creatures. 

Investment strategy of Nemish Shah

The investor, who has been through various market cycles, looks for the following pre-requisites while selecting a company for investment:

A) The company’s ROCE should not be below 9%.

B) The company has planned future growth.

C) The company should have sound management.

D) And lastly, he should get a discounted entry price.
 

Coming to his personal portfolio, as per the information published by Trendlyne, Nemish Shah publicly holds 7 stocks and has a net worth of over Rs 1,260.9 crore.

Let’s take a look at the 7 stocks in his portfolio and their holding value:

  1. Lakshmi Machine Works Ltd (Rs 954.4 crore)  

  1. Elgi Equipments Ltd (Rs 119.4 crore)  

  1. EID Parry (India) Ltd (Rs 103.8 crore)  

  1. Bannari Amman Sugars Ltd (Rs 75.6 crore)  

  1. Zodiac clothing company Ltd (Rs 4.9 crore)  

  1. Rane Engine Valve Ltd (Rs 1.9 crore)  

  1. Super Spinning Mills Ltd (Rs 1 crore)

From his portfolio, it is quite evident that he doesn’t like to invest in a huge number of stocks and rather invests in a selected few stocks and have diversity in them.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

M&M beats street estimates with 29% jump in Q2 standalone profit

by 5paisa Research Team 09/11/2021

Automobile major Mahindra & Mahindra (M&M) reported better-than-expected results for the three months ended September 30, with both revenue and net profit coming ahead of what brokerages had projected.

Standalone net profit before exceptional items grew 29% from a year earlier to Rs 1,687 crore for the second quarter. This exceeded expectations that ranged between Rs 1,100 crore and Rs 1,500 crore. Net profit after accounting for exceptional items grew almost nine-fold to Rs 1,432 crore.

Consolidated net profit before exceptional items grew 43% to Rs 1,975 crore. The profit after factoring in the exceptional items rose threefold.

Standalone revenue grew 15% to Rs 13,305 crore as against expectations of around Rs 12,500 crore. This was powered by the automotive unit as farm equipment revenue growth was modest.

The company’s share price rose 2.12% and was trading at Rs 877.5 apiece in late afternoon trade on the BSE in a weak Mumbai market on Tuesday.

M&M Q2: Other Highlights

1) Standalone EBITDA declined 19% to Rs 1,660 crore from Rs 2,057 crore in Q2 FY21.

2) Total vehicle volume was up 9% at 99,334 compared with a year earlier.

3) Total tractor volume was, however, lower at 88,920 versus 93,246 in the year-ago quarter.

4) Farm equipment sector tractor market share at 40.1%, up 1.9% from Q2 FY2021.

5) M&M operating margin 12.5% despite rising commodity prices and shortage of semiconductors.

6) Strong exports volumes: Farm up 105% (highest ever in H1); Auto up 86% compared to Q2 FY2021

M&M management commentary

Anish Shah, managing director and CEO at M&M, said the company saw significant improvement in its performance this quarter. “Our strong show in the auto and farm sectors was complemented well by the improved performance in the group companies. Our investments in digital platforms are doing well and present a meaningful opportunity to create and unlock value,” he said.

Rajesh Jejurikar, executive director at M&M, said the farm equipment sector continued to deliver robust performance, both in terms of market share and financial metrics despite steep commodity inflation.

“We had a blockbuster XUV7OO launch witnessing bookings of more than 70,000. demand for our other key automotive products also remains strong. With better availability of semiconductors, we hope to maintain the volume growth momentum Q3 onwards. We are poised well to deliver very strong growth and returns through an exciting new product portfolio,” Jejurikar said.

Manoj Bhat, group chief financial officer at M&M, said commodity prices impacted margins in both the auto and farm business. However, M&M’s focus on cost management and optimization helped mitigate some of the impact.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Check out the large cap stocks where FIIs increased stake in Q2

by 5paisa Research Team 09/11/2021

Indian stock indices are consolidating near their peaks and investors, anticipating a correction, are putting more money into large cap counters as they seek greater comfort rather than taking risks with mid- and small-cap stocks.

Foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) have become more cautious about investing in India in recent months but quarterly shareholding data shows they pushed up their holding in more than 200 listed companies. In fact, they increased their stake by two percentage points or more in a fourth of these companies.

In particular, they hiked stake in as many as 89 companies that have a valuation of $1 billion or more in the second quarter through September. This compares with 83 companies where they put additional money in the previous quarter ended June 30.

Of these 89 companies, 48 were large-cap companies. In particular, FIIs were bullish on selective FMCG stocks, PSU banks and gas and power firms. In addition, FIIs also increased their stake in Tier-II pharmaceutical stocks, engineering companies, life insurers and a few automakers.

Top large caps that saw FII buying

If we look at the pack of large caps with a market valuation of Rs 20,000 crore ($2.6 billion) or more, then FIIs pushed up their stake in telecom firm Bharti Airtel, jewellery and watch company Titan, HDFC Life Insurance, engineering firm Siemens, electrical products maker Havells, Eicher Motors, Godrej Properties and state-run GAIL. The FIIs also upped their holding in FMCG companies Dabur, Tata Consumer and Marico.

Among others, Piramal Enterprises, SRF, Bank of Baroda, Bharat Electronics, HAL, Astral, Canara Bank, Alkem, NMDC, Varun Beverages, Voltas, Dalmia Bharat and Tata Elxsi also saw foreign portfolio investors picking up additional shares.

Lower down the order in terms of market cap were companies such as Petronet LNG, Max Financial, MRF, Coforge, NHPC, REC, Hatsun Agro, Ipca Laboratories, Laurus Labs, Indian Hotels and GMR Infrastructure.

The FIIs also bought more shares of ICICI Securities, M&M Financial Services, Oil India, Tata Chemicals, Indian Energy Exchange, Clean Science & Tech, Linde India, Aavas Financiers, IndiaMART, Federal Bank, CG Power, Gujarat Fluorochem and Godrej Industries during the second quarter.

While Dabur, Voltas, Bharat Electronics and Max Financial had also figured in the pack where FIIs bought more stake in the previous quarter ended June 30, most of these companies are different.

In the previous quarter, FIIs had picked up additional stake in India’s second- and third-largest software exporters—Infosys and Wipro—besides Axis Bank, Divi’s Labs, L&T, Grasim, Tata Steel, NTPC and Indian Oil.

Meanwhile, in over four dozen firms FIIs picked up 2% or more additional stake last quarter. Within this, firms with a market capitalisation of Rs 20,000 crore or more where the FIIs hiked stake by 2% or more include names like HDFC Life Insurance, Havells India, Godrej Properties, Voltas, Clean Science & Tech and Aavas Financiers.

In the previous quarter ended June, FIIs had taken a bullish view on technology firm Coforge (previously NIIT Technologies), SBI Cards, IDFC First Bank, Max Financial, Tata Steel, chemical manufacturers Aarti Industries and Graphite India, besides Voltas and Bharat Electronics.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order