Data for equity flows into a mutual funds for March came as a breather after a weak February. Increase in net inflows in equity and income category led to the overall rise.
Pure equity schemes received strong inflows of Rs 9,014 crore — highest since October 2018 — as against Rs 3,950 crore in February 2019 which came in at a 2-year low, Edelweiss Securities said in a report.
Interestingly, Equity AUMs saw a staggering growth of 10 percent on a month-on-month basis and stood at Rs 9,76,000 crore, its highest ever growth was supported by a surge in equity markets when Nifty climbed 7.7 percent in March.
The Assets Under Management (AUM) of the Indian mutual fund industry came in at Rs. 23.80 lakh crore in March 2019, up 2.73 percent against Rs. 23.16 lakh crore in February 2019, according to the Association of Mutual Funds in India (AMFI)
Even after receiving strong inflows in the equity segment, MFs were net sellers of Rs 7,665 crore in the secondary market in March 2019, highlighted a report. If we analyse the trend of fund managers ahead of elections, it suggests that they have booked profits in the outperforming stocks in March.
Top 30 stocks which witnessed strong buying according to change in value include names like NTPC, ICICI Prudential Life, L&T, SBI Life Insurance, State Bank of India, Jubilant Foodworks, Maruti Suzuki, Bank of Baroda, Relaxo, and Aarti Industries among others.
Fund managers increased allocation towards sectors such as financial services, textiles, construction, healthcare services, energy, cement, and chemicals which saw a double-digit month-on-month change.
Fund managers dumped IT and auto stocks in March which saw a negative change in value for the month of March, IDBI Capital said in a report.
Top 30 stocks in which fund managers booked profits based on net change in the value of holding include big-ticket names like RIL, HDFC, Bajaj Finance, Eicher Motors, BPCL, JSW Steel, Titan Company among others.
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