Has fall in Infosys share price impacted your MF scheme?
The issue of corporate governance is engulfing the entire India Inc. The companies that were supposed to be the role model of corporate governance also seem to be embroiled in it. The latest being Infosys, where a whistle-blower has alleged that that the CEO of Infosys is involved in following some unethical practices to show higher revenue and profit.
In response to the allegation, Infosys chairman Nandan Nilekani who is also one of the founding members of the company has issued a statement saying “we will ensure that the generalised allegations are investigated to the fullest extent. Additionally, to ensure independence in these investigations the CEO and CFO have been recused from this matter.”
It will take some time for the investigation report to come out, however, the damage has been done in the share price of the Infosys, which is down by 15% in today’s trade with high turnover. Besides the shareholder, there are various mutual investors who will lose. Analysis of the investment by MFs in Infosys shows that they have been bringing down their investment in Infosys. In last four months it has come down from 56 crore to 54 crore.
| Sector | No. of Funds | No. of Shares | No. of Shares | No. of Shares | No. of Shares |
| | | `Sep-19 | `Aug-19 | `Jul-19 | `Jun-19 |
| Technology | 427 | 549353639 | 553745228 | 559119189 | 566595686 |
The worst loser will be someone holding the IT fund such as ICICI Pru Technology Fund, which holds 44.25 per cent of his assets in Infosys. Hence, a 15% fall in the share price of Infosys means a 6.6 per cent drop in the net asset value of the fund.
Following are the top 10 funds that will get impacted most due to fall in the share price of Infosys.
| | Sep-19 | |
| Fund Name | Fund Manager | AUM (in Rs. cr) | % of AUM | Impact on NAV(%) |
| ICICI Pru Technology Fund(G) | Sankaran Naren | 440.3 | 44.25 | 6.64 |
| SBI Technology Opp Fund-Reg(G) | Anup Upadhyay | 158.7 | 35.69 | 5.35 |
| Tata Digital India Fund-Reg(G) | Sailesh Jain | 417.2 | 33.74 | 5.06 |
| Aditya Birla SL Digital India Fund(G) | Kunal Sangoi | 454.7 | 27.46 | 4.12 |
| Franklin India Technology Fund(G) | Anand Radhakrishnan | 242.9 | 25.05 | 3.76 |
| Nippon India ETF Shariah BeES | Mehul Dama | 2.6 | 23.21 | 3.48 |
| Kotak NV 20 ETF | Devender Singhal | 14.7 | 14.8 | 2.22 |
| Nippon India ETF NV20 | Mehul Dama | 31.4 | 14.76 | 2.21 |
| ICICI Pru NV20 ETF | Kayzad Eghlim | 12 | 14.69 | 2.20 |
| Nippon India ETF Dividend Opportunities | Mehul Dama | 2 | 9.76 | 1.46 |
If you hold any of these funds, check if it still fits in your entire financial planning. If not, you can better exit the fund.