AUM at a new peak; equity inflows moderate: Motilal Oswal Fund Folio Report
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According to Motilal Oswal Fund Folio Report,Equity AUM for domestic MFs (including ELSS and index funds) increased 7.8% MoM to INR22.3t in Nov’23, fueled by a rise in market indices (Nifty up 5.5% MoM). Notably, the month saw a decline in sales of equity schemes (down 10.5% MoM to INR430b). The pace of redemptions was unchanged at INR261b (up 0.4% MoM). Consequently, net inflows moderated to INR169b in Nov’23 from INR220b in Oct’23. The MF industry’s AUM scaled new highs to reach INR49t in Nov’23 (+5% MoM), primarily led by a MoM increase in AUM for equities (INR1,614b), other ETFs (INR282b), balanced (INR246b), arbitrage (INR114b), and liquid (INR36b) funds. Notably, AUM was up MoM across categories.
AUM: Up 5% MoM to INR49t; equity inflows moderate
Total AUM of the MF industry scaled new highs to reach INR49t in Nov’23 (+5% MoM), primarily led by a MoM increase in AUM for equities (INR1,614b), other ETFs (INR282b), balanced (INR246b), arbitrage (INR114b), and liquid (INR36b) funds. Equity AUM for domestic MFs (including ELSS and index funds) increased 7.8% MoM to INR22.3t in Nov’23, led by a rise in market indices (Nifty up 5.5% MoM). Notably, the month saw a decline in sales of equity schemes (down 10.5% MoM to INR430b). The pace of redemptions was unchanged at INR261b (up 0.4% MoM). Consequently, net inflows moderated to INR169b in Nov’23 from INR220b in Oct’23
Top 20 funds: Value of equity MFs rises 7.6% MoM and 25.3% YoY
Total equity value for the top 20 AMCs increased 7.6% MoM (+25.3% YoY) in Nov’23 vs. a 5.5% MoM rise (+7.3% YoY) for the Nifty-50. Among the Top 10 funds, the maximum MoM increase was seen in Nippon India Mutual Fund (+9.3%) followed by Kotak Mahindra Mutual Fund (+9.2%), DSP Mutual Fund (+8.8%), HDFC Mutual Fund (+8.3%), and Axis Mutual Fund (+8.0%).
Sector wise weightage: MoM increase seen in Healthcare, Real Estate, and Technology
In Nov’23, MFs showed an interest in Healthcare, Real Estate, Technology, Utilities, Retail, and Metals, leading to a MoM rise in their weights. Conversely, Banks (Private & PSU), Consumer, Chemicals, and Consumer Durables saw a MoM moderation in weights. Private Banks (18.2%) was the top sector holding for MFs in Nov’23, followed by Technology (9.5%), Autos (8.4%), Capital Goods (7.2%), and Healthcare (7.0%). Real Estate, Metals, Healthcare, Retail, and Utilities were the sectors to witness maximum increase in value MoM
Sectoral allocation of funds: Healthcare, Capital Goods, and Autos over-owned
The top sectors where MF ownership vis-à-vis the BSE 200 are at least 1% higher: Healthcare (15 funds over-owned), Capital Goods (15 funds overowned), Automobiles (11 funds over-owned), NBFCs (11 funds over-owned), and Chemicals (11 funds over-owned).
The top sectors where MF ownership vis-à-vis the BSE 200 are at least 1% lower: Consumer (20 funds under-owned), Oil & Gas (19 funds underowned), Private Banks (15 funds under-owned), Utilities (14 funds under-owned), and Technology (12 funds under-owned).
Nifty-50 snapshot: MFs net buyers in 50% of the stocks
The highest MoM net buying in Nov’23 was observed in Bajaj Finance (+12.6%), Adani Ent. (+11.1%), Kotak Mahindra Bank (+6.6%), Tata Consumer (+5.9%), and JSW Steel (+5.4%).
Nifty Midcap-100 snapshot: MFs net buyers in 64% of the stocks
The highest MoM net buying in Nov’23 was seen in Petronet LNG, JSW Energy, Sun TV Network, Aditya Birla Capital, and Vodafone Idea.
Top schemes and NAV change: All top 25 schemes close higher MoM
Among the top 25 schemes by AUM, the following reported the highest MoM increase: Nippon India Growth Fund (+10% MoM change in NAV), Nippon India Small Cap Fund (+8.4% MoM), HDFC Mid-Cap Opportunities Fund (+8% MoM), HDFC Small Cap Fund (+7.9% MoM), and HDFC Flexi Cap Fund (+7.4% MoM).
Value surprise: Divergent interests visible within sectors
In Nov’23, divergent interests were seen within sectors. Top 10 stocks that saw the maximum MoM increase in value were HDFC Bank, Infosys, Bharti Airtel, Reliance Industries, ICICI Bank, Axis Bank, L&T, NTPC, Sun Pharma, and PFC. Stocks that witnessed the maximum MoM decline in value were SBI, BOB, Tata Communications, Cholamandalam Financial Holdings, Polycab India, SBI Cards, IndusInd Bank, Persistent Systems, Thermax, and SKF India
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