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Stock Analysis, IPO, Mutual Funds, Bonds & More

It’s not the biggest, but the brightest who are netting the mutual fund inflows

Several schemes from these fund houses are toppers in their categories.

, ET Bureau|
Updated: Nov 22, 2019, 09.37 AM IST
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Belapurkar pointed out that Kotak’s strategy of staying away from PSUs and heavily-indebted companies has helped its schemes perform well, especially in the multi-cap and mid-cap space.
Gone are the days when investors felt less compelled to discriminate while zeroing in on their pick in the equity mutual fund space. Nowadays, they are increasingly preferring winners with a consistent track record within the actively-managed equity mutual fund category. With returns from equities becoming elusive and many funds struggling to beat the benchmarks these days, investors are mostly choosing only those handful funds that have been outperformers.

Of the 39 fund houses that manage actively-managed equity mutual funds, schemes of three asset managers — Kotak, Mirae and Axis — have mopped up slightly more than half of the Rs 6027 crore that investors put into equity mutual funds in October. Analysts said these three fund houses have received the highest inflows despite not being amongst the top five equity asset managers’ club in assets under management, a sign that investors are watching performance very closely.

“These fund houses have stood the test of times. The last couple of years were tough as the markets were polarised. Quality stocks have moved up sharply while midcaps and small caps have not,” says Kaustubh Belapurkar, head (research), Morningstar India.

This is in contrast to the situation before early 2018 when investors did not have to choose between products because a bull run ensured most equity schemes outperformed. These days, with only a few stocks contributing to the run-up in the Sensex to record highs, fund managers have struggled to sustain their performances.
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Several schemes from these fund houses are toppers in their categories. Axis Bluechip Fund and Mirae Large Cap are amongst top performers in the large-cap category over three- and five-year periods. In the large and midcap categories, Mirae is a top performer over three- and five-year periods, while Axis Growth Opportunities Fund is the best performer over a one-year period.

Kotak Standard Multicap has received the highest inflows in the multi-cap category, also making it the largest actively-managed equity mutual fund with assets of Rs 28,348 crore, beating its benchmark over 3- and 5-year periods. Invesco Contra Fund received the highest flows in the contra space despite the segment witnessing outflows in August. Funds from L&T, Axis and Kotak received the highest inflows in the mid-cap category.

“Mirae has followed value conscious growth and shown a consistent performance, while Axis has picked up high growth stocks with a concentrated exposure, which paid off,” said Vidya Bala, founder, Primeinvestor.in.

Belapurkar pointed out that Kotak’s strategy of staying away from PSUs and heavily-indebted companies has helped its schemes perform well, especially in the multi-cap and mid-cap space.

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