Indices rose over 1 percent to hit a fresh record high in November but flows into equity funds are showing signs of tapering. That could be a reason to worry.
Net inflows into equity mutual funds, including closed-ended schemes, fell drastically in November compared to Rs 6,000 crore in the previous month.
“Support from domestic inflows has been key for Indian markets since FY16 in sustaining rich multiples on the backdrop of sustained earnings disappointments. Net inflows into equity mutual funds for November were at $180 million, the lowest in 41 months,” UBS said in a report.
“Lower returns, or even negative in some cases, are potentially leading to retail redemptions. Systemic Investment Plan (or SIP) inflows at $ 1.2 billion remained at a peak, though this too has broadly stagnated over the past 12 months,” it said.
The overall assets under management (AUM) though grew in November, hitting Rs 27 lakh crore as of November-end from Rs 23.59 lakh crore a year ago, Association of Mutual Funds in India (AMFI) data showed.
Here is a list of top ten stocks from ICICIDirect Research report that fund managers bought and sold in November:
Large-caps
Adani Ports, Shree Cement, NMDC, Bajaj Finance and United Breweries witnessed the highest buying during November 2019. Bajaj Finance saw addition primarily due to its QIP issue.
Large-cap stocks that were sold by AMCs were HDFC AMC, DLF, Berger Paints, L&T Finance Holdings and Siemens.
Midcaps
Small-caps
In smallcaps, Jyothy Labs, Rites, Tata Elxsi, Narayana Hrudalaya, and FDC witnessed the highest buying during November 2019.
And Greaves Cotton, HCC, Aavas Financiers, Jamna Auto and NCC saw heavy selling.
Note: The above tables are for reference only and not buy or sell ideas.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
