Data for equity flows into mutual funds for March came as a breather after a weak February. An 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 two-year low.
Interestingly, equity AUMs witnessed a staggering growth of 10 percent on a month-on-month basis and stood at Rs 9,76,000 crore, its highest ever growth that 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. If we analyse the trend of fund managers ahead of elections, it suggests that they have booked profits in the outperforming stocks in March.
According to the data analysed by Morningstar, top 10 stocks that witnessed strong buying according to change in value are: NTPC, Oil & Natural Gas Corp, Coal India, ICICI Prudential Life, Indian Oil Corp, SBI Life Insurance, Larsen & Toubro (L&T), Power Finance Corp, REC Ltd, and Maruti Suzuki.
Similarly, top 10 stocks that fund houses sold were Axis Bank, Power Grid Corp Of India, Bharat Petroleum Corp of India, Eicher Motors, Reliance Industries, LIC Housing Finance, ITC, Bharti Airtel, JSW Steel and Titan.
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