FinTech BizNews Service

AUM: Up 3.8% MoM to INR61.2t; equity inflows remain strong

Total AUM of the MF industry rose 3.8% MoM to INR61.2t in Jun’24, driven by a MoM increase in AUM for equities (INR2,423b), other ETFs (INR473b), and balanced (INR280b) funds.  Equity AUM for domestic MFs (including ELSS and index funds) increased 8.7% MoM to INR30.2t in Jun’24, fueled by a rise in market indices (Nifty up 6.6% MoM) as well as a jump in equity scheme sales (up 15% MoM to INR905b), supported by higher NFOs launched by MF houses vs. the previous month. At the same time, redemptions increased 13.4% MoM to INR449b. Consequently, net inflows increased 16.6% to INR456b in Jun’24 from INR392b in May’24.

Top 20 funds: Value of equity MFs rises 8% MoM and 56.4% YoY

Total equity value for the top 20 AMCs increased 8% MoM (+56.4% YoY) in Jun’24 vs. a 6.6% MoM rise (+25.1% YoY) for the Nifty-50. Among the Top 10 funds, the maximum MoM increase was seen in SBI Mutual Fund (+8.9%) followed by Axis Mutual Fund (+8.8%), DSP Mutual Fund (+8.6%), Nippon India Mutual Fund (+8.2%), and HDFC Mutual Fund (+8.2%).

Sector wise weightage: MoM increase seen in Technology, Telecom, and Private Banks

In Jun’24, MFs showed interests in Technology, Telecom, Private Banks, Autos, Consumer Durables, Chemicals, and Insurance, leading to a MoM rise in their weights. Conversely, Capital Goods, PSU Banks, Utilities, Metals, Healthcare, Consumer, and Real Estate saw a MoM moderation in weights. Private Banks (17.2%) was the top sector holding for MFs in Jun’24, followed by Automobiles (8.9%), Technology (8.3%), Capital Goods (8.1%), and Healthcare (6.9%). Technology, Telecom, Consumer Durables, Insurance, and Chemicals sectors witnessed the maximum increase in value MoM.

Sectoral allocation of funds: Oil & Gas, Consumer, and Private Banks under-owned

The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% lower: Oil & Gas (18 funds under-owned), Consumer (18 funds underowned), Private Banks (14 funds under-owned), Utilities (13 funds under-owned), and Technology (11 funds under-owned). The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% higher: Capital Goods (14 funds over-owned), Healthcare (14 funds overowned), Consumer Durables (12 funds over-owned), Automobiles (9 funds over-owned), and NBFCs (8 funds over-owned).

Nifty-50 snapshot: MFs net buyers in 56% of the stocks

The highest MoM net buying in Jun’24 was observed in Dr Reddy’s (+10.3%), Bajaj Finserv (+9.9%), HDFC Life Ins. (+9%), Eicher Motors (+8.8%), Adani Ent. (+8%).

Nifty Midcap-100 snapshot: MFs net buyers in 57% of the stocks

The highest MoM net buying in Jun’24 was seen in Indus Towers, L&T Finance, Mphasis, Aditya Birla Capital, and Piramal Enterprises

Nifty Smallcap-100 snapshot: MFs net buyers in 58% of the stocks

The highest MoM net buying in Jun’24 was witnessed in PNB Housing Finance, Manappuram Finance, Intellect Design Arena, Olectra Greentech, and JBM Auto.

Top schemes and NAV change: All top 25 schemes close higher MoM

Among the top 25 schemes by AUM, the following reported the highest MoM increase: Kotak Emerging Equity Fund (+9.5% MoM change in NAV), Axis Midcap Fund (+8.8% MoM), UTI-Flexi Cap Fund (+8.8% MoM), Nippon India Small Cap Fund (+8.6% MoM), and Nippon India Growth Fund (+8.6% MoM).

Value surprise: Maximum MoM increase seen in Private Banks and Technology stocks

In Jun’24, the stocks that saw the maximum MoM increase in value were HDFC Bank, Reliance Industries, Infosys, ICICI Bank, Indus Towers, Axis Bank, M&M, TCS, Kotak Mahindra Bank, and Mphasis. Stocks that witnessed the maximum MoM decline in value were PFC, L&T, Hindalco Industries, Zee Entertainment, Coal India, HPCL, REC, PNB, SAIL, and Adani Power.