Motilal Oswal Fund Folio Report: Pace of redemptions increased to INR354b (up 10.2% MoM)
FinTech BizNews Service
Mumbai, March 14, 2024: According to Motilal Oswal’s Fund Folio Report, Equity AUM for domestic MFs (including ELSS and index funds) increased 2.7% MoM to INR25.3t in Feb’24, led by a rise in market indices (Nifty up 1.2% MoM) and an increase in sales of equity schemes (up 13.7% MoM to INR646b). However, the pace of redemptions increased to INR354b (up 10.2% MoM). Consequently, net inflows increased to INR292b in Feb’24 from INR247b in Jan’24. Investors continued to park their money in mutual funds, with inflows and contributions in systematic investment plans (SIPs) reaching a new peak of INR191.9b in Feb’24 (up 1.9% MoM and 40.2% YoY).
AUM: Up for the fifth consecutive month to INR54.5t (+3.4% MoM)
Total AUM of the MF industry continued to scale new highs to reach INR54.5t in Feb’24 (+3.4% MoM), primarily led by a MoM increase in AUM for liquid (INR877b), equities (INR672b), other ETFs (INR176b), and balanced (INR131b) funds. Conversely, the AUM for income funds declined INR146b MoM. Equity AUM for domestic MFs (including ELSS and index funds) increased 2.7% MoM to INR25.3t in Feb’24, led by a rise in market indices (Nifty up 1.2% MoM) and an increase in sales of equity schemes (up 13.7% MoM to INR646b). However, the pace of redemptions increased to INR354b (up 10.2% MoM). Consequently, net inflows increased to INR292b in Feb’24 from INR247b in Jan’24.
Top 20 funds: Value of equity MFs rises 2.1% MoM and 50% YoY
Total equity value for the top 20 AMCs increased 2.1% MoM (+50% YoY) in Feb’24 vs. a 1.2% MoM rise (+27% YoY) for the Nifty-50. Among the Top 10 funds, the maximum MoM increase was seen in Nippon India Mutual Fund (+3.4%) followed by ICICI Prudential Mutual Fund (+2.4%), Mirae Asset Mutual Fund (+2.2%), HDFC Mutual Fund (+1.9%), and Kotak Mahindra Mutual Fund (+1.9%).
Sector wise weightage: MoM increase seen in Capital Goods, Oil & Gas and PSU Banks
In Feb’24, MFs showed an interest in Capital Goods, Oil & Gas, PSU Banks, Insurance, Consumer Durables, Technology, Utilities, Retail, and Real Estate, leading to a MoM rise in their weights. Conversely, NBFCs, Private Banks, Consumer, Metals, Automobiles, Cement, and Chemicals saw a MoM moderation in weights. Private Banks (16.7%) was the top sector holding for MFs in Feb’24, followed by Technology (9.5%), Autos (8.2%), Capital Goods (7.7%), and Healthcare (7.3%). Consumer Durables, PSU Banks, Insurance, Oil & Gas, and Capital Goods were the sectors that witnessed the maximum increase in value MoM.
Sectoral allocation of funds: Healthcare, Capital Goods, and NBFCs over-owned
The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% higher: Healthcare (16 funds over-owned), Capital Goods (15 funds overowned), NBFCs (10 funds over-owned), Chemicals (10 funds over-owned), and Consumer Durables (9 funds over-owned). The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% lower: Consumer (19 funds under-owned), Oil & Gas (18 funds underowned), Technology (15 funds under-owned), Private Banks (14 funds under-owned), and Utilities (13 funds under-owned).
Nifty-50 snapshot: MFs net buyers in 50% of the stocks
The highest MoM net buying in Feb’24 was observed in HDFC Life (+11.2%), Adani Enterp. (+9.4%), Britannia (+7.7%), Kotak Mah. Bank (+6.2%), and Wipro (+5.7%).
Nifty Midcap-100 snapshot: MFs net buyers in 54% of the stocks
The highest MoM net buying in Feb’24 was seen in Devyani Intl, Indus Towers, Godrej Properties, Aditya Birla Capital, and Oil India.
Nifty Smallcap-100 snapshot: MFs net buyers in 63% of the stocks
The highest MoM net buying in Feb’24 was witnessed in Kalyan Jewellers, Data Patterns, Mahanagar Gas, Latent View Analytics, and Indiamart Intermesh.
Top schemes and NAV change: 21 of the top 25 schemes close higher MoM
Among the top 25 schemes by AUM, the following reported the highest MoM increase: Parag Parikh Flexi Cap Fund (+3.9% MoM change in NAV), Axis Midcap Fund (+3.4% MoM), Nippon India Large Cap Fund (+3% MoM), HDFC Flexi Cap Fund (+3% MoM), and Axis Bluechip Fund (+2.6% MoM).
Value surprise: Divergent interests visible within sectors
In Feb’24, divergent interests were seen within sectors. The top 10 stocks that saw the maximum MoM increase in value were SBI, Reliance Industries, TCS, Maruti Suzuki, Power Grid Corp., Whirlpool of India, ICICI Bank, M&M, Coal India, and L&T. The stocks that witnessed the maximum MoM decline in value were ITC, Hindalco Industries, Bajaj Finance, One 97 Communications, Bharti Airtel, Cholamandalam Investment & Finance, NHPC, REC, Ashok Leyland, and NMDC.
