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September saw notable changes in the sector and stock allocation of mutual funds and on a month on month basis, the weights of utilities, NBFCs, PSU banks, automobiles, healthcare, telecom, and cement increased, while that of private banks, technology, consumer, oil and gas, and chemicals moderated, as per a report by Motilal Oswal Financial Services.

Utilities’ weight jumped to a 35-month high of 3.8 per cent in in Sep’23. Healthcare’s weight climbed for the fourth consecutive month to a 17-month high of 6.8 per cent.

Private Banks’ weight moderated for the third consecutive month to 18.9 per cent.

Oil and gas weight declined for the fifth consecutive month in Sep’23 to 5.7 per cent, the lowest since Nov'15.

In terms of value change MoM, divergent interests were seen within sectors: Top 5 stocks that increased in value were NTPC, L&T, Bharti Airtel, Coal India and Axis Bank, the report said.

Equity AUM for domestic MFs (including ELSS and index funds) increased 2.5 per cent MoM to Rs 21t in Sep’23 fueled by a rise in market indices. Notably, the month saw a decline in sales of equity schemes (down 5.2 per cent MoM to Rs 461b). The pace of redemptions picked up to Rs 305b (up 15.4 per cent MoM). Consequently, net inflows reduced to Rs 155b in Sep’23 from Rs 221b in Aug’23, the report said.

Total AUM for the MF industry remained flat MoM at Rs 46.6t in Sep’23, led by a MoM increase in AUM for equities (Rs 513b), balanced (Rs 161b), other ETFs (Rs 143b), and arbitrage (Rs 104b) funds but offset by a MoM decline in AUM for liquid (Rs 799b) and income funds (Rs 156b).

Investors continued to park their money in mutual funds, with inflows/contributions in systematic investment plans (SIPs) reaching a new high of Rs 160.4b in Sep’23 (up 1.4 per cent MoM and 23.6 per cent YoY).