June 15, 2023
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AUM scale new heights in May ’23.
Breach the INR43t+ level
According to Motilal Oswal Financial Services, Equity AUM for domestic MFs (including ELSS and index funds) increased 4.3% MoM to INR18.4t in May’23, fueled by a rise in market indices (Nifty up 2.6% MoM) and an increase in equity scheme sales (up 21% MoM to INR341b). At the same time, redemptions spiked 36.6% MoM to INR311b. Consequently, net inflows dipped to a two-year low of INR30b in May’23. Total AUM for the MF industry rose (3.8% MoM) to INR43.2t in May’23, led by a MoM increase in AUM for equities (INR751b), liquid (INR547b), and other ETF (INR174b) funds. AUM for income funds declined INR49b during the month. Investors continued to park their money in mutual funds, with inflows/contributions in systematic investment plans (SIPs) reaching a new high of INR147.5b in May’23 (up 7.4% MoM and 20% YoY).
AUM scale new heights in May ’23, Up 3.8% MoM to INR43.2t; equity MF inflows remain weak
Total AUM for the MF industry rose (3.8% MoM) to INR43.2t in May’23, led by a MoM increase in AUM for equities (INR751b), liquid (INR547b), and other ETF (INR174b) funds. AUM for income funds declined INR49b during the month. Equity AUM for domestic MFs (including ELSS and index funds) increased 4.3% MoM to INR18.4t in May’23, fueled by a rise in market indices (Nifty up 2.6% MoM) and an increase in equity scheme sales (up 21% MoM to INR341b). At the same time, redemptions spiked 36.6% MoM to INR311b. Consequently, net inflows dipped to a two-year low of INR30b in May’23.
Top 20 funds: Value of equity MFs increases 4.1% MoM and 20.8% YoY
The total equity value for the top 20 AMCs increased 4.1% MoM (+20.8% YoY) in May’23 v/s a 2.6% MoM rise (+11.8% YoY) for the Nifty. Among the Top 10 funds, the highest MoM rise was seen in Nippon India Mutual Fund (+4.6%) followed by Kotak Mahindra Mutual Fund (+4.4%), Axis Mutual Fund (+4.3%), UTI Mutual Fund (+4.1%) and ICICI Prudential Mutual Fund (+4%).
Sector wise weightage: MoM increase seen in NBFC, Technology, and Automobiles
In May’23, MFs showed an interest in NBFCs, Technology, Automobiles, Consumer, Retail, and Insurance leading to a MoM rise in their weights. Conversely, Private Banks, PSU Banks, Utilities, Oil & Gas, Metals, and Media saw a MoM moderation in weights. Private Banks (18.1%) was the top sector holding for MFs in May’23, followed by Technology (9.6%), NBFCs (8.4%), Autos (8%), and Consumer (7.1%). PSU Banks, Metals, Textiles, Private Banks, and Utilities were the only sectors to witness a decrease in value MoM.
AUM scale new heights in May ’23.. check Sectoral allocation of funds:
Capital Goods, Chemicals, and Healthcare over-owned
The top sectors where MF ownership vis-à-vis the BSE 200 are at least 1% higher: Capital Goods (17 funds over-owned), Chemicals (15 funds overowned), Healthcare (15 funds over-owned), Automobiles (13 funds over-owned), and PSU Banks (7 funds over-owned).
The top sectors where MF ownership vis-à-vis the BSE 200 are at least 1% lower: Consumer (19 funds under-owned), Oil & Gas (19 funds underowned), Private Banks (14 funds under-owned), Technology (12 funds under-owned), and Utilities (12 funds under-owned).
Nifty-50 snapshot: MFs net buyers in 50% of the stocks
The highest MoM net buying in May’23 was seen in HDFC Life Insurance (+24.8%), JSW Steel (+14%), UPL (+12.8%), HDFC (+7.2%), and Dr Reddy’s Labs (+5.9%).
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