Redemptions from top 20 MFs up 38% to Rs 18,300 crore: Motilal Oswal Fund Report
Redemptions from top 20 fund houses have risen to the second highest level in FY18, despite the industry's AUM touching record highs
With markets hitting a new high many retail investors are taking some money off the table. A report from brokerage Motilal Oswal’s mutual fund tracker shows that the redemptions from top 20 fund houses have risen to the second highest level in FY18, despite the industry's AUM touching record highs.
In June, redemptions from equity schemes rose to a whopping 38 percent to Rs 18,300 crore. In comparison leading to a 24 percent sequential fall in net inflows to Rs 8,200 crore, according to brokerage Motilal Oswal’s mutual fund tracker report.
Source: Motilal Oswal
In June, Nifty 50 fell 1 percent .
The domestic mutual fund industry’s average assets under management went up for the 15th consecutive quarter to a new high of Rs 19.6 lakh crore. Compared to the same quarter last year, AUM rose 35 percent in the April-June quarter, mainly on account of inflows in equity, income and liquid funds, the report said.
The equity value of top 20 mutual funds in June rose 2 percent over the previous month, and 50.1 percent over the same month last year.
Birla Sun Life Mutual Fund recorded the highest increase in value followed by Axis Mutual Fund, SBI Mutual Fund, HDFC Mutual Fund and ICICI Prudential Mutual Fund.Other facts mentioned in the report
- June witnessed a notable change in sector and stock allocation of funds. Defensives’ weight increased from 23.7 percent in May to 24.2 percent in June, as the weights of healthcare, consumer, telecom and utilities increased, while Technology saw a decrease on MoM basis.
- Domestic cyclicals’ weight fell by 40 bps to 66.5 percent, as the weights of auto and capital goods declined, while those of financials saw an increase. Global cyclicals’ weight too declined by 20 bps to 9.3 percent, as weight of oil & gas fell, while metals saw an increase.
- The weight of oil & gas declined for second consecutive month in June to 6 percent. Consumer maintained its positive momentum for the second consecutive month to attain a high of 6.8 percent. Metals too maintained an upward trajectory, with a sustained MoM increase in weight.
- NBFCs’ sector weight reached a new high of 7.2 percent. As a result, the sector has risen to the fourth position in sector allocation of mutual funds – it was at the eighth position 12 months ago.
- Of the top 10 stocks in terms of value increase MoM, four were from financials and two from metals.
- Kotak Mahindra Bank, which entered the Sensex-30, was one of the preferred stocks among MFs in June, with net buying by 11 funds.
- Vedanta, one of the preferred stocks among MFs in June, saw net buying by 12 funds.
- Value shocks were significant in Oil & Gas stocks. They invested Reliance Industries, IOC, BPCL, and HPCL.