November 29, 2022
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Mutual Fund Review – November 2022
Industry Synopsis
· The AUM of the mutual fund industry rose to all time high levels in October 2022 to | 39.5 lakh crore from | 38.4 lakh crore in September 2022. The rise in AUM was predominantly due to mark to market gains in equity oriented funds
· The AUM of equity oriented funds by the end of October 2022 was at | 15.2 lakh crore compared to | 14.6 lakh crore in September 2022. Inflows (ex-NFOs) during October 2022 fell to | 6340 crore from | 8264 crore in September 2022. Overall inflows have been lower in the last four months, ever since markets recovered in July 2022. NFOs during October garnered | 3050 crore against | 5800 crore in September. SIP inflows continued to rise and came in at | 13040 crore in October compared to | 12976 crore in September 2022
· Flows in Dynamic Asset Allocation/Balanced Advantage turned negative for the first time in almost two years in October 2022 at (-)| 450 crore
· Higher number of NFOs in index funds category led to higher inflows at | 5100 crore in the category during October
· Debt funds continue to witness outflows across categories
Performance Highlights
After the sharp fall in September, equity markets across the globe stage a comeback rally with US markets leading the recovery as investors took in stride the US Federal Reserve rate hike concerns
October and November 2022 witnessed a broad based market recovery with almost all categories of funds recovering from lows
Overall large caps recovered sharply from the September lows while midcap and small cap funds underperformed as selective large cap stocks led to rally in the markets
Global funds outperformed in last one month after having underperformed significantly since many months. Technology stocks led the recovery in US markets as sharp fall induced bargain buying by investors. Tracking global cues, IT sector in India also outperformed
Banking funds continue to outperform as most banks delivered superior performance in their recent quarterly results showcasing improved loan growth and asset quality
Nifty 50 ETF outperformed other category of ETFs. Smart beta ETFs like Quality 30, Low Vol 30, Alpha Low Vol 30, Alpha 50 etc. continue to underperform the benchmark Nifty 50 ETF underscoring the importance of keeping it simple (unless otherwise confident) with just the benchmark Nifty 50 ETF
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