INSUBCONTINENT EXCLUSIVE:
Fund managers of some large- and multi-cap schemes have been buying the Nifty futures in a bid to boost returns
A look at the factsheets of large fund houses shows that some schemes have added Nifty futures to the tune of 1-9 per cent in their
portfolio as of November 2018.
Schemes such as ICICI Prudential Value Discovery, Axis Multicap, Axis Bluechip, ICICI Prudential Bluechip
Fund, Kotak Standard Multicap and Kotak India Contra Fund held Nifty futures as part of their portfolio.
Fund managers attribute this to a
number of reasons such as strong inflows into schemes towards the end of the month, short-term tactical play and as a tool to participate in
the markets while they wait for price correction in stocks they wish to buy
view also finds credence with Shreyash Devalkar, Senior Fund Manager, Axis Mutual Fund, which has Nifty futures in a couple of its
exposure against the cash that we are holding while we are evaluating specific stocks as more longer-term investment ideas for the
Hence, we invest in Nifty futures so that we can participate in the market
Since fund managers are unable to generate alpha, they are resorting to this strategy.
They point out that fund managers have been adding
Nifty futures to their portfolio because of lower impact cost and easy liquidity.
According to data from mutual funds data tracking agency
Accord Fintech, only two schemes out of 32 in the large-cap category have outperformed their benchmarks in the last one year putting further
Through Nifty, fund managers are hedging their portfolios
In times when fund managers are uncertain as to how the stocks they are invested in would perform, exposure to Nifty helps in tiding over
