Has fall in Infosys share price impacted your MF scheme?

Has fall in Infosys share price impacted your MF scheme?

Shashikant Singh
/ Categories: Mutual Fund

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.

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