Retail investors are not leaving any opportunity to miss out on the big bull market which India is witnessing and this is now started reflecting in the massive flows which pushed asset under management (AUM) to a record high of Rs 20 lakh crore last month.
The total category wise AUM of the mutual fund industry increased by 3.1 percent (Rs 62,384 Cr) to Rs 20.59 lakh crore in August 2017. On a year-on-year (YoY) basis, total AUM of Mutual Fund increased by 31.7 percent, said an IDBI Capital report.
Liquid Fund saw the highest rise on a month-on-month (MoM) basis & fund of funds (FOF) Overseas saw the highest fall in AUM. FOF, Gold ETF witnessed net outflow, while others witnessed net inflows, said the report.
AUM of equity funds increased by 2.6 percent to Rs 5.74 lakh crore in August 2017 over July 2017. On YoY basis, AUM of equity fund increased by 37.7 percent.
Domestic mutual funds turned out to be net buyers in equity markets in the month of August 2017. The report further added that mutual funds were net buyers of equities in 21 trading session worth Rs 17,941 Cr, as against net buying of Rs 11,799 Cr in July 2017.
Massive flows from domestic MFs got pumped in newly listed stocks on the bourses which saw maximum traction. There are about nine stocks which fund managers added in their respective funds for the first time in the month of August.
In August, 9,82,000 new SIP accounts were added, taking the total SIP accounts to 15.9 million. The total amount collected through SIP during the month of August was Rs52.1 billion, up 50 percent on a YoY basis.
Stocks which MFs added for the first time include names like Cochin Shipyard, Apex Frozen Foods, BLS International Services, Centrum Capital, HEG, Gravita India, Avadh Sugar, and Shipping Corporation of India, said the IDBI Capital report.
Cochin Shipyard Ltd (CSL), which comes under the Ministry of Shipping, was listed on the BSE and the National Stock Exchange in the month of August. The company has raised Rs 1,442 crore from the IPO.
Apex Frozen Foods which listed on stock exchanges on September 4 was oversubscribed 6.14 times, receiving bids for 3.8 crore equity shares against the IPO size of 62.1 lakh shares (excluding anchor investors’ portion).
The month also saw a notable change in the sector and stock allocation of funds. In August, MFs showed interest in Oil & Gas, Utilities, Metals, NBFCs, Consumer, and Retail—these sectors saw a MoM increase in weight, Motilal Oswal said in a report.
“Banks (PSU and Private), Autos, Capital Goods, Technology, Healthcare, and Infrastructure saw a MoM decrease in weight. Private Banks (17.4%) had the top sector holding in August, followed by Auto (9.7%), Capital Goods (8.1%) and NBFC (8.1%),” it said.
In August, four of the top-10 stocks that saw maximum change in value was from Oil & Gas. NTPC, HDFC, IOCL, HPCL and Tata Steel saw maximum value change on a MoM basis.
SBI, Tata Motors, BOB, Tube Investments and Tata Motors-DVR saw a maximum decline in value.