Fund managers added as many as 9 stocks to their portfolio for the first time which include names like Orient Electric, followed by Amber Enterprises India, Galaxy Surfactants Ltd, Newgen Software, Emami Paper, Nath Bio-Genes, Apollo Micro, HOEC, and Pilani Investment.
Indian equity markets rose to fresh record highs in the month of January which was reflected in the rise in the asset base of Mutual Funds (MFs). The Assets Under Management (AUM) of the Indian mutual fund industry came in at Rs. 22.41 lakh crore in January 2018, up from Rs. 21.38 lakh crore in December 2017.
The calendar year started on a high note and AUM of the Equity category crossed the milestone of Rs 7 lakh crore. Notably, AUM of Equity (including Equity Linked Savings Schemes or ELSS), Balanced funds, other ETFs for January 2018 touched an all-time high of approximately Rs 10.36 lakh crore.
Sequentially, the AUM of Equity Fund increased by 2 percent (by Rs 13,777 crore) to Rs 7.03 Lakh crore in Jan 2018. On an annual basis, however, AUM of Equity Fund increased by 59 percent, IDBI Capital said in a note.
Fund managers added as many as 9 stocks to their portfolio for the first time which include names like Orient Electric, followed by Amber Enterprises India, Galaxy Surfactants Ltd, Newgen Software, Emami Paper, Nath Bio-Genes, Apollo Micro, HOEC, and Pilani Investment, said the note.
CK Birla group firm Orient Electric saw maximum buying interest from fund managers as MFs poured in over Rs 300 crore last month, followed by Amber Enterprises in which the market value stood at Rs 159 crore, and Galaxy Surfactants saw a market value of Rs 115 crore.
In terms of sectors, fund managers were busy accumulating stocks in IT sectors which saw a month-on-month (MoM) rise of 10.6 percent, followed by Consumer Goods which rose by 4.5 percent, and financial services were up by 4.1 percent.
However, fund managers reduced their stake in sectors like telecom (down 6.7 percent MoM), Fertilisers & Pesticide (down 5.4 percent MoM), and Textiles (down 3.8 percent MoM).
In January 2018, Equity funds (including ELSS) witnessed monthly net inflows of Rs 15,390 crore, down 4 percent MoM. “The fall in number could be because of investors turning cautious ahead of the Union Budget 2018-19,” rating agency ICRA said in a report.
Cumulative inflows into these funds have surged 166 percent to Rs 148,144 crore so far in the financial year 2017-18 compared with Rs 55,689 crore in the Apr-Jan period of the financial year 2016-17.
“The surge in Equity inflows and higher retail participation can be attributed to investor awareness campaigns by Asset Management Companies (AMCs) and industry body AMFI,” said the ICRA report.
Folio count comes in at 6.83 crore in Jan, up 2.7 percent MoM:
The total folio count at the end of January 2018 stood at 6.83 crore, 2.7 percent higher compared with December 2017, according to data from the Securities and Exchange Board of India (SEBI). The increase comes amid a strong rally in the domestic equity market.
B15 towns witness AUM growth of 46.2 percent YoY in Jan:
The country’s smaller towns or B15 (beyond top 15 cities) locations accounted for 18.9 percent of the total industry AUM at the end of January 2018.
“In the last 12 months, B15 towns have witnessed AUM growth of 46.2 percent or Rs 1.37 lakh crore to reach Rs 4.34 lakh crore at the end of January 2018 compared with Rs 2.97 lakh crore in the year-ago period, said the ICRA report.In January 2018, the share of direct plans in B15 towns stood at 20.6 percent against 45.1 percent in T15 cities, it said.