GEMGAZE

October 2020

The consistent performance of two out of four funds in the January 2020 GEMGAZE is reflected in those funds holding on to their esteemed position of GEM in the October 2020 GEMGAZE. HDFC Balanced Advantage Fund and Nippon India Equity Hybrid Fund, in view of their lacklustre performance, have been shown the exit door. Mirae Asset Hybrid Equity, DSP Equity and Bond Fund and SBI Equity Hybrid Fund have been accorded a red carpet welcome in the October 2020 GEMGAZE.

ICICI Prudential Equity and Debt Fund Gem

Launched in November 1999, ICICI Prudential Equity and Debt Fund is a very popular product in this category. The fund has earned a return of -1.89% over the past one year as against the category average of 5.6%. The three-year and five-year returns are more than the category average of 3.26% and 6.9%, respectively at 1.28% and 6.57%, respectively. This Rs 16,099 crore fund has 39.16% of the portfolio in the top three sectors energy, finance, and metals. The fund has traditionally featured a high equity allocation, hovering at well over 70%, and it continues to maintain it at 73.1% of the portfolio in equity comprising 76 stocks. In terms of style, the fund follows a blend of growth and value styles. Traditionally, the equity portfolio has been mid-cap biased. But in the last one year, its weight has veered sharply towards large-cap stocks. The fund is now significantly overweight on large-caps relative to the category. The expense ratio of the fund is 1.77%. The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive. Sankaran Naren, the veteran fund manager, manages this fund along with Manish Banthia.

Canara Robeco Equity Hybrid Fund Gem

Canara Robeco Equity Hybrid Fund is the oldest balanced fund that has exhibited smooth sailing across market cycles. The one-year return of the fund is 12.72% as against the category average of 5.6%. The fund’s three-year and five-year returns of 8.07% and 9.41% respectively are higher than the category average of 3.26% and 6.90% respectively. Canara Robeco Equity Hybrid Fund has 51 stocks in the portfolio. 36.98% of the portfolio is in the top three sectors, concentrated in finance, technology and energy sectors. The good performance of Canara Robeco Equity Hybrid Fund across market cycles is attributable to its bias towards safety and stability. This is reflected in the significant proportion of large-cap stocks in its portfolio. The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive. The expense ratio of this Rs 3438 crore fund is 1.99% with a portfolio turnover ratio of 43%. The fund is managed by Mr. Avnish Jain, Mr Shridatta Bhandwaldar and Mr. Cheenu Gupta.

Mirae Asset Hybrid Equity Fund Gem

Launched in July 2015, Mirae Asset Hybrid Equity Fund is a very popular product in this category. The fund has earned a return of 8.63% over the past one year as against the category average of 5.6%. The three-year and five-year returns are more than the category average of 3.26% and 6.9%, respectively at 6.4% and 9.77%, respectively. This Rs 3,735 crore fund has 48.84% of the portfolio in the top three sectors finance, energy, and technology. The fund continues to maintain the portfolio in equity comprising 56 stocks. In terms of style, the fund follows a blend of growth and value styles. The expense ratio of the fund is 1.91% and the turnover ratio is 134%. The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive. Mahenra Kumar Jajoo, the veteran fund manager, manages this fund along with Harshad Borawake, Neelesh Surana and Vrijesh Kasera.

SBI Equity Hybrid Fund Gem

SBI Equity Hybrid Fund, launched in December 1995, is one of the oldest balanced funds. The one-year return of the fund is 3.1% as against the category average of 5.6%. The fund’s three-year and five-year returns of 6.08% and 8.32% respectively are higher than the category average of 3.26% and 6.90% respectively. SBI Equity Hybrid Fund has 43 stocks in the portfolio. 35.76% of the portfolio is in the top three sectors, concentrated in finance, healthcare and technology sectors. The good performance of SBI Equity Hybrid Fund across market cycles is attributable to its bias towards safety and stability. This is reflected in the significant proportion of large-cap stocks in its portfolio. The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive. The expense ratio of this Rs 31,226 crore fund is 1.62%. The fund is managed by Mr. Dinesh Ahuja and Mr. Srinivasan. 

DSP Equity and Bond Fund Gem

Launched in May 1999, DSP Equity and Bond Fund is a very popular product in this category. The one-year return of the fund is 5.66% as against the category average of 5.6%. The fund’s three-year and five-year returns of 5.11% and 8.59% respectively are higher than the category average of 3.26% and 6.90% respectively. DSP Equity and Bond Fund has 56 stocks in the portfolio. 42.87% of the portfolio is in the top three sectors, concentrated in finance, chemicals and construction sectors. The good performance of SBI Equity Hybrid Fund across market cycles is attributable to its bias towards safety and stability. This is reflected in the significant proportion of large-cap stocks in its portfolio. The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive. The expense ratio of this Rs 5,502 crore fund is 1.9% and the portfolio turnover ratio is 177%. The fund is managed by Mr. Atul Bhole and Mr. Vikram Chopra.