New Delhi, Oct 14 | Investor confidence into equity schemes of companies seem to be on the rise as India unlocks to revive economic activity post the pandemic induced lockdown.
According to the Fund Folio report from Motilal Oswal Financial Services, in September sales of Equity schemes increased 17.5 per cent MoM to Rs 17,900 crore. Additionally, redemptions also cooled off marginally and stood at Rs 18,500 crore (down 2.7 per cent MoM), leading to a slowdown in net outflows to Rs 600 crore in September (v/s outflows of Rs 3,800 crore recorded in August).
As per the brokerage report, during the month Mutual Fund (MF) industry’s asset under management (AUM) decreased 2.3 per cent MoM (Rs 60,000 crore) to Rs 26.9 lakh crore, primarily led by Liquid funds (Rs 69,700), Balanced funds (Rs 7,800) and Equity funds (Rs 5,200). After rising 17.9 per cent over the last three months, Equity AUM (including ELSS and Index funds) of domestic MFs declined a marginal 0.6 per cent MoM to Rs 8.1 lakh crores in September, led by the fall in market indices (Nifty -1.2 per cent MoM).
The Motilal Oswal Financial Services’ Fund Folio is a handbook on the holdings of the top-20 domestic mutual funds in India. The monthly report provides details on trend in AUMs and flows, sector allocation by funds, stock-wise holding change, top schemes and NAV change and fund-wise snapshot on top holdings.
According to the report, in September, compared to other categories, Multi-cap schemes’ proportion to overall outflows were higher at Rs 1,140 crore. Large-cap and Mid-cap schemes saw outflows of Rs 580 crore and Rs 70 crore respectively, while Small-cap funds received inflows of Rs 130 crore.
Technology’s weight increased 140bp MoM to 11.6 per cent to climb a new high and healthcare’s weight hit 55-month high to 8.7 per cent (+70bp MoM, +340bp YoY). Whereas, Private Bank’s weight hit a 29-month low to 15.8 per cent (-150bp MoM, – 500bp YoY).
The brokerage said that the total equity value of top-20 AMCs decreased 1.5 per cent MoM (+3.9 per cent YoY) in September, as against the Nifty’s fall of 1.2 per cent MoM (-2 per cent YoY).
Among the top-20 funds, the highest MoM increase was seen in Canara Robeco Mutual Fund (4.4 per cent), Mirae Asset Mutual Fund (1.8 per cent), Invesco Mutual Fund (0.8 per cent), Tata Mutual Fund (0.7 per cent) and L&T Mutual Fund (0.3 per cent).
Among the top-25 schemes by AUM, those registering the highest increase were Nippon India Small Cap Fund (+3.9 per cent MoM change in NAV), DSP Midcap Fund (+3.3 per cent MoM), UTI-Equity Fund (+2.3 per cent MoM), HDFC Small Cap Fund (+2 per cent MoM) and HDFC Mid-Cap Opportunities Fund (+1 per cent MoM).
In September, five of the 10 stocks that saw maximum increase in value were from Technology.
Reliance Industries (RIL), Infosys, TCS, HCL Tech, Dr. Reddy’s Labs, Tech Mahindra, Wipro, Cipla, Ipca Labs and Maruti Suzuki saw maximum increase in the value MoM.
Stocks that saw maximum decline in value MoM were ICICI Bank, Axis Bank, SBI, Bharti Airtel, Kotak Mahindra Bank, HDFC Bank, NTPC, ITC, L&T and HUL.