- The month just gone by received positive incremental news flow through the month to set a bottom in place and move up consistently.
- The large cap index, Nifty50, was up 17 of the 21 trading days. As risk taking came back, the midcap index was up 8.2% while smallcap index was up 7.7%.
- The rupee depreciated for third month in a row due to pressure from Oil.
- The equity and bond market worry that both the deficits may come under pressure. In fact the equity market investors may use the weakness in markets due to oil price rise as a buying opportunity.
- As elaborated earlier, there would be enough volatility in the markets. Make volatility your friend by committing more capital on bad days if any.
Source: ABSLAMC Research, Bloomberg
- Aditya Birla Sun Life Balanced Advantage Fund (An Open ended Dynamic Asset Allocation Scheme
An Indian private sector bank was the new entrant in the fund owing to its stable asset quality and superior return ratios depicting a strong operational business model. We continue to remain bullish in the construction space where we increased our holdings in a construction company as its well positioned to benefit from the ongoing economic recovery.
- Aditya Birla Sun Life Equity Fund (An open ended equity scheme investing across large cap, mid cap, small cap stocks)
During the month, exposure to an Indian multinational corporation was increased on the back rising discretionary expenditure in US, while rupee depreciation would also benefit the company. The fund maintains its cautious stance on the markets and continues to look for value in order to deploy cash.
- Aditya Birla Sun Life Small Cap Fund (An open ended equity scheme predominantly investing in small cap stocks)
During the month, we added a media company to the portfolio owing to the expected growth in ad spends along with benefits emerging from digitalisation of cable networks. We took fresh exposure to an Indian logistics facilitator as we are positive on the logistics space due to the expected implementation of E-way bill.
The Scheme(s) may or may not have any present or future positions in these sectors
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.