July 17, 2024
admin
Equity AUM scales a new high of INR30t in June 2024
Key observations of June 24 Equity AUM
# The Nifty, after consolidating in May’24, touched a fresh high of 24,174 before ending +6.6% MoM at 24,011 in Jun’24. Notably, the index was extremely volatile and swung around 2,893 points before closing 1,480 points higher. FIIs turned buyers of USD3.1b in Jun’24, after remaining net sellers for two months. DIIs recorded inflows of USD3.4b in Jun’24 after clocking USD6.7b in May’24.
# Equity AUM for domestic MFs (including ELSS and index funds) increased 8.7% MoM to INR30.2t in Jun’24, fueled by a rise in market indices (Nifty up 6.6% MoM) as well as a jump in equity scheme sales (up 15% MoM to INR905b) supported by higher NFOs launched by mutual fund houses vs. the previous month. At the same time, redemptions increased 13.4% MoM to INR449b. Consequently, net inflows increased 16.6% to INR456b in Jun’24 from INR392b in May’24.
# The total AUM of the MF industry rose 3.8% MoM to INR61.2t in Jun’24, driven by a MoM increase in AUM for equities (INR2,423b), other ETFs (INR473b), and balanced (INR280b) funds.
# Investors continued to park their money in mutual funds, with inflows and contributions in systematic
investment plans (SIPs) reaching a new peak of INR212.6b in Jun’24 (up 1.7% MoM and 44.3% YoY).
Some interesting facts of June 24 Equity AUM
# The month saw notable changes in the sector and stock allocation of funds. On a MoM basis, the weights of Technology, Telecom, Private Banks, Automobiles, Consumer Durables, Chemicals, and Insurance increased, while those of Capital Goods, PSU Banks, Utilities, Metals, Healthcare, Consumer, and Real Estate moderated.
# Technology’s weight, after dipping to a 51-month low in May’24, climbed in Jun’24 to 8.3% (+60bp MoM; 100bp YoY), regaining the third spot in MF allocation.
# Telecom’s weight rose to a 46-month high of 3.2% (+20bp MoM, +70bp YoY) in Jun’24.
# Capital Goods’ weight, after touching an eight and a half-year high in May’24, moderated in Jun’24 to 8.1% (40bp MoM; +110bp YoY).
# PSU Banks’ weight moderated to a seven-month low of 3% (-30bp MoM, -30bp YoY) in Jun’24.
# In terms of value increase MoM, four of the top-10 stocks were from the Private Banks space: HDFC Bank (+INR285.5b), ICICI Bank (+INR100b), Axis Bank (+INR61.1b), and Kotak Mah Bank (+INR46.8b).
Quicklinks