Domestic equity markets have been on a downtrend over the last three months. Experts attribute the fall to the negative trend in global markets coupled with unabated foreign fund outflows. NIFTY 50 – TRI corrected 7% while Nifty Midcap 150 – TRI and Nifty Smallcap 250 – TRI declined by 9% and 3% respectively during the period. Domestic equity mutual funds too followed suit and equity schemes across the board delivered negative returns. While the Auto, Infrastructure and Small cap Funds contained the fall well, Pharma, Technology and Mid Cap Funds demonstrated huge volatility and fell the most. Here are the list of schemes that fell the least in the current fall that started from October 18, 2021.
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Top 5 holdings among the schemes that fell the least during the current fall were Reliance Industries, Infosys, HDFC Bank, ICICI Bank and Larsen & Toubro. Significant allocation to ICICI Bank (gained around 7% during the fall), Larsen & Toubro (7%) and Maruti Suzuki India (15%) by these schemes helped contain the fall much during this period.
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Top 5 stock holdings of these midcap funds were Max Financial Services, Tube Investments of India, Schaeffler India, Mphasis and Shriram Transport Finance Company. Higher allocation to Tube Investments of India (rose 21%), CG Power and Industrial Solutions (49%), Cholamandalam Investment and Finance Company (10%) helped Motilal Oswal Midcap 30 Fund while Thermax (41%) and Sheela Foam (27%) helped SBI Magnum Midcap to cushion the fall.
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Akin to largecap funds, the large & midcap funds too allocated to higher to the megacap stocks like ICICI Bank, State Bank Of India, HDFC Bank, Reliance Industries and Infosys. However, relatively higher allocation to the midsized companies like Max Healthcare Institute (8%), Greenpanel Industries (44%) and Minda Industries (28%) helped withstand the correction well.
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While the large and midcap funds extended their losses during the market fall, the smallcap funds contained the corrections well so far. Tube Investments of India, Birlasoft, Brigade Enterprises, Persistent Systems and Greenpanel Industries were the prominent names in the top 5 holdings among these smallcap funds that fell least during the current fall. K.P.R. Mill (33%), Neogen Chemicals (32%), Grindwell Norton (18%) and KPIT Technologies (88%) helped these funds to contain the market well.
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Similar to largecap funds, flexicap funds too held bluechip players like HDFC Bank, ICICI Bank, Infosys, State Bank Of India and Larsen & Toubro in their portfolio. Stocks that benefitted these schemes during this fall were ICICI Bank (7%), State Bank Of India (8%), Maruti Suzuki India (15%) and Larsen & Toubro (7%).
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Focused funds too held bluechip stocks in their top 5 holdings such as Infosys, ICICI Bank, State Bank Of India, HDFC Bank and Reliance Industries. However, focused funds outperformed large, mid and flexicap funds during this fall.
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Glaxosmithkline Pharmaceuticals (11%), ICICI Bank (7%), Brigade Enterprises (7%) and Bharti Airtel (4%) were few stocks helped the ELSS schemes to contain the fall well during the period.
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Compared to the equity funds, Aggressive Hybrid Funds managed to withstand the current fall well so far thanks to their relatively lower allocation to equity assets. Top 5 holdings among the schemes that fell the least during the current fall were Reliance Industries, Infosys, HDFC Bank, ICICI Bank and Larsen & Toubro.
