Total AUM of domestic MFs increased 1.2 percent MoM to Rs 24,50,000 crore in July after declining 6.5 percent in June, led by inflows in income and debt-oriented, equity and ETF schemes
An escalating US-China trade war, India's deteriorating macro health and the Budget proposal of a tax surcharge on super-rich have triggered an incessant outflow of foreign funds from the equity market in July.
The Nifty retreated almost six percent in July. Despite the volatility and sell-off in equities, mutual funds (MFs) saw steady inflows.
“Despite the elevated volatility and a sharp correction in mid- and smallcaps, investor faith in mutual funds remained firm with steady inflows. In fact, the contribution to systematic investment plans (SIPs) touched a record high of Rs 8,320 crore in July,” brokerage Motilal Oswal Financial Services said.
Total assets under management (AUM) of domestic MFs increased 1.2 percent month-on-month (MoM) to Rs 24,50,000 crore in July after declining 6.5 percent in June, led by inflows in income and debt-oriented, equity and exchange-traded fund (ETF) schemes, the brokerage added.
Equity schemes, including equity-linked saving schemes and arbitrage funds, saw net inflows increase to Rs 14,000 crore in July against Rs 10,700 crore in June, led by higher gross inflows at Rs 30,200 crore in July (up 21 percent MoM). Redemptions were up 13 percent MoM at Rs 16,100 crore.
Even though the total equity value of the top-20 asset management companies (AMCs) decreased 4.7 percent MoM, it was still 9.1 percent up year-on-year (YoY) in July, Motilal Oswal said.
July saw a conspicuous change in sectoral and stock allocation of funds. On a MoM basis, the weight of technology, consumer, utilities, healthcare, private banks and oil & gas increased, while that of non-banking financial companies (NBFCs), automobiles, state-run banks, capital goods, metals, infrastructure and retail moderated.
Based on a report from Motilal Oswal Financial Services here is a breakdown of the key trends in equity AUM of top five mutual funds by equity value:SBI Mutual Fund:
Among the top fund houses in terms of equity value, SBI Mutual Fund’s equity AUM for July stood at Rs 1,57,800 crore, down 3.2 percent MoM, but up 24.4 percent YoY.
It increased its holdings in technology, private banks and consumer segment by 0.9 percentage points (pp), 0.7 pp and 0.6 pp, respectively. And, trimmed its holdings in auto, NBFCs and capital goods by 0.5 pp, 0.5 pp and o.3 pp, respectively.
In terms of net asset value (NAV), SBI Large & Midcap Fund (G) and SBI Magnum Global Fund (G) saw a 5.1 percent decline each in July. SBI Magnum Multicap Fund (G), SBI Focused Equity Fund (G) and SBI Healthcare Opportunities Fund (G) declined 4.8 percent, 4.2 percent and 0.5 percent MoM, respectively.
HDFC Mutual Fund:
HDFC MF’s equity AUM stood at Rs 1,43,400 crore in July, down 5.4 percent MoM, but six percent higher YoY.
Technology, consumer and oil & gas were the top three sectors that witnessed top allocation from the fund house at 1.2 pp, 0.7 pp and 0.3 pp, respectively.
The fund house trimmed allocation to state-run banks, NBFCs and capital goods by 0.6 pp, 0.5 pp and 0.4 pp, respectively, in July.
In terms of NAV, HDFC Housing Opportunities Fund - Sr. 1 (G) and HDFC Top 100 Fund (G) declined 7.2 percent and 7.1 percent, respectively. HDFC Growth Opportunities Fund (G), HDFC Index Fund-Nifty 50 Plan and HDFC Long Term Advantage Fund (G) fell 6.7 percent, 5.5 percent and 5.4 percent, respectively.
ICICI Prudential Mutual Fund:
ICICI Pru MF’s equity AUM stood at 1,25,400 crore in July. Sector-wise, private banks, consumer and healthcare saw higher sectoral allocation at 0.6 pp, 0.6 pp and 0.4 pp, respectively. The fund house cut its monthly allocation to utilities, oil & gas and auto by 0.5 pp, 0.4 pp and 0.3 pp, respectively.
In terms of NAV, ICICI Pru Long Term Equity Fund - (G), ICICI Pru Multicap Fund - (G) and ICICI Pru Bluechip Fund (G) saw a MoM decline of 6.2 percent, 5.9 percent and 5.5 percent, respectively.
Reliance Mutual Fund:
Reliance MF’s equity AUM stood at Rs 1,04,500 crore in July. Oil & gas (3.1 pp), utilities (2.7 pp) and technology (0.4 pp) saw higher monthly allocation. The fund house pared its monthly allocation to PSU banks, NBFCs and capital goods by 1.3 pp, 0.9 pp and 0.9 pp, respectively.
In terms of NAV, Reliance Growth Fund - (G), Reliance Large Cap Fund (G) and Reliance Retirement Fund-Wealth Creation (G) saw a MoM decline of over seven percent each.
Aditya Birla Sun Life Mutual Fund:
Aditya Birla Sun Life MF’s equity AUM stood at 79,000 crore in July. Healthcare (0.7 pp), private banks (0.6 pp) and oil & gas (0.4 pp) were the top three sectors that saw a MoM increase in allocation by the fund house.
The firm cut its monthly allocation to NBFC and auto sector by 0.8 pp and 0.7 pp in July.
In terms of NAV, Aditya Birla SL Equity Fund (G), Aditya Birla SL Manufacturing Equity Fund (G) and Aditya Birla SL Focused Equity Fund (G) declined 5.4 percent, 5.3 percent and 5.3 percent, respectively, in July.
Aditya Birla SL Frontline Equity Fund (G) and Aditya Birla SL India GenNext Fund (G) also fell by 4.9 percent and 4.4 percent, respectively.
(Note: All images & data have been taken from Motilal Oswal Financial Services)Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.