Equity AUM Scales A New High Of Rs27 Tn; Fund Folio Report by Motilal Oswal Financial Services
FinTech BizNews Service
Mumbai, May 14, 2024: The Nifty ended 1.2% higher MoM at 22,605 in Apr’24 after making new highs of 22,783. The index has closed higher for the third straight month now. Notably, the index was extremely volatile and swung around 1,006 points before closing 278 points higher, as per the latest Fund Folio Report by Motilal Oswal Financial Services.
DIIs recorded the ninth consecutive month of inflows in Apr’24 at USD5.3b. FIIs recorded outflows of USD1.1b in Apr’24. Investors continued to park their money in mutual funds, with inflows and contributions in systematic investment plans (SIPs) reaching a new peak of INR203.7b in Apr’24 (up 5.7% MoM and 48.4% YoY). Equity AUM for domestic MFs (including ELSS and index funds) increased 5.3% MoM to INR27t in Apr’24, led by a rise in market indices (Nifty up 1.2% MoM) and an increase in sales of equity schemes (up 10.6% MoM to INR654b). The pace of redemptions increased to INR400b (up 15.1% MoM). Consequently, net inflows increased to INR254b in Apr’24 from INR244b in Mar’24. Total AUM of the MF industry rose 7.2% MoM to INR57.3t in Apr’24, driven by a MoM increase in AUM for liquid (INR1,406b), equities (INR1,349b), income (INR520b), balanced (INR217b), and other ETF (INR180b) funds.
Some interesting facts
§ The month saw notable changes in the sector and stock allocation of funds. On a MoM basis, the weights of Private Banks, Metals, Utilities, Telecom, Consumer Durables, and Real Estate increased, while those of Technology, Healthcare, Oil & Gas, Consumer, Retail, Cement, Insurance, and Textiles moderated.
§ Private Banks’ weights increased for the second consecutive month to 17.2% in Apr’24 (+30bp MoM; -180bp YoY).
§ Metals’ weight rose to a 31-month high of 2.7% (+30bp MoM, +70bp YoY) in Apr’24.
§ Technology‘s slipped to third place from the second spot in MF allocation, with weights declining for the second consecutive month to touch a 50-month low of 8% (-70bp MoM, -120bp YoY) in Apr’24. § Healthcare’s weight, after touching a 31-month high of 7.4% in Mar'24, moderated 30bp MoM in Apr'24 to reach 7.1%. § In terms of value increase MoM, five of the top-10 stocks were from the Banking space: HDFC Bank (+INR119.9b), Axis Bank (+INR106.8b), ICICI Bank (+INR88b), SBI (+INR54.1b), and Kotak Mahindra Bank (+INR38.4b).
Private Banks and Metals gain; Technology slips
AUM: Up 7.2% MoM to INR57.3t; equity inflows stable n Top 20 funds: Value of equity MFs rises 5.2% MoM and 53.7% YoY n Sector wise weightage: MoM increase seen in Private Banks, Metals, and Utilities n Sectoral allocation of funds: Consumer, Oil & Gas, and Private Banks under-owned n Nifty-50 snapshot: MFs net buyers in 62% of the stocks n Nifty Midcap-100 snapshot: MFs net buyers in 55% of the stocks n Nifty Smallcap-100 snapshot: MFs net buyers in 69% of the stocks n Top schemes and NAV change: All top 25 schemes close higher MoM n Value surprise: Maximum MoM increase seen in Banking stocks
AUM: Up 7.2% MoM to INR57.3t; equity inflows stable
Trend in total AUM § Total AUM of the MF industry rose 7.2% MoM to INR57.3t in Apr’24, driven by a MoM increase in AUM for liquid (INR1,406b), equities (INR1,349b), income (INR520b), balanced (INR217b), and other ETF (INR180b) funds. § Equity AUM for domestic MFs (including ELSS and index funds) increased 5.3% MoM to INR27t in Apr’24, led by a rise in market indices (Nifty up 1.2% MoM) and an increase in sales of equity schemes (up 10.6% MoM to INR654b). The pace of redemptions increased to INR400b (up 15.1% MoM). Consequently, net inflows increased to INR254b in Apr’24 from INR244b in Mar’24.
Top 20 funds: Value of equity MFs rises 5.2% MoM and 53.7% YoY
§ Total equity value for the top 20 AMCs increased 5.2% MoM (+53.7% YoY) in Apr’24 vs. a 1.2% MoM rise (+25.1% YoY) for the Nifty-50. § Among the Top 10 funds, the maximum MoM increase was seen in DSP Mutual Fund (+8.3%) followed by Nippon India Mutual Fund (+7.7%), Kotak Mahindra Mutual Fund (+7.5%), HDFC Mutual Fund (+5.5%), and ICICI Prudential Mutual Fund (+4.8%).
Sector wise weightage:
MoM increase seen in Private Banks, Metals, and Utilities
§ In Apr’24, MFs showed an interest in Private Banks, Metals, Utilities, Telecom, Consumer Durables, and Real Estate, leading to a MoM rise in their weights. Conversely, Technology, Healthcare, Oil & Gas, Consumer, Retail, Cement, Insurance, and Textiles saw a MoM moderation in weights. § Private Banks (17.2%) was the top sector holding for MFs in Apr’24, followed by Automobiles (8.3%), Technology (8%), Capital Goods (7.9%), and Healthcare (7.1%). § Consumer Durables, Metals, Telecom, Utilities, and Real Estate were the sectors that witnessed the maximum increase in value MoM.
Consumer, Oil & Gas, and Private Banks under-owned
§ The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% lower: Consumer (20 funds under-owned), Oil & Gas (18 funds underowned), Private Banks (14 funds under-owned), Technology (13 funds under-owned), and Utilities (13 funds under-owned). § The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% higher: Healthcare (17 funds over-owned), Capital Goods (15 funds overowned), NBFCs (10 funds over-owned), Chemicals (10 funds over-owned), and Consumer Durables (10 funds over-owned).
MFs net buyers in 62% of the stocks
The highest MoM net buying in Apr’24 was observed in Kotak Mahindra Bank (+19.5%), HDFC Life Ins. (+12.8%), HUL (+7.8%), Adani Ports (+6%), and Hindalco (+5.5%)
Nifty Midcap-100 snapshot:
The highest MoM net buying in Apr’24 was seen in Vodafone Idea, Mazagon Dock, Tata Technologies, JSW Energy, and Suzlon Energy.
Nifty Smallcap-100 snapshot:
§ The highest MoM net buying in Apr’24 was witnessed in Angel One, HUDCO, Mahanagar Gas, Amara Raja Energy, and City Union Bank.
Top schemes and NAV change:
Among the top 25 schemes by AUM, the following reported the highest MoM increase: Nippon India Small Cap Fund (+9.2% MoM change in NAV), SBI Small Cap Fund (+8% MoM), Nippon India Multi Cap Fund (+7.7% MoM), Kotak Emerging Equity Fund (+7.3% MoM), and HDFC Small Cap Fund (+7.1% MoM).
Maximum MoM increase seen in the Banking stocks
In Apr’24, five of the Top 10 stocks that saw a maximum increase in value were from the Banking domain. HDFC Bank, Axis Bank, ICICI Bank, SBI, Bharti Airtel, NTPC, Kotak Mahindra Bank, Bharat Electronics, Hindalco Industries, and Power Grid Corp. increased the most in value MoM. § In Apr’24, the top 10 stocks that saw a maximum drop in value MoM were L&T, HCL Technologies, Bajaj Finance, Infosys, Sun Pharma, Persistent Systems, Cipla, Sona BLW Precision, TCS, and Titan Company.
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The information is obtained from publicly available media or other sources believed to be reliable. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. MOFSL will not treat recipients as customers by virtue of their receiving this report.
