Month: March 2025

Market Corrections Shake Equity MFs: Fresh Picks & Strategic Selloffs

Equity Mutual Funds Face Early 2025 Jitters: Equity mutual funds stumbled at the beginning of 2025, witnessing a 10.39% drop in Net AUM to ₹27.40 Lakh Cr in just two months. The downturn was triggered by a sharp correction in Mid Cap and Small Cap stocks, shaking investor confidence.

Equity MFs Go Bold: Hexaware IPO Bet & High-Conviction Picks: Doubling down on fresh opportunities, 42 equity mutual fund schemes grabbed a 6.3% stake in the Hexaware Technologies IPO, signaling strong confidence in new-age investments. MFs are ramping up positions in high-potential stocks, favoring Kotak Mahindra Bank, SBI Cards & Payment Services, Eicher Motors, UPL, Marico, HDFC AMC, Avenue Supermarts, Maruti Suzuki, M&M and IndusInd Bank. Adding to their aggressive stance, they also backed the IPOs of Ajax Engineering and Quality Power Electrical Equipments.

Equity Schemes Exit Key Positions in Major Companies: Equity mutual funds are reworking their portfolios, fully exiting key positions in NTPC Green Energy, Swiggy, Siemens, REC, Trent, Bharat Electronics, HPCL, Voltas, Bharti Hexacom, Titan, HCL Tech, Grasim and Hindustan Unilever. This signals a strategic shift as funds reposition themselves for new opportunities.

Equity Mutual Funds Accumulate in Market Leaders, Trim Positions in Infosys & SBI: Equity mutual funds actively accumulated top-tier stocks, betting big on Coforge, Max Healthcare Institute, Power Grid, Ultratech Cement, Zomato, HDFC Bank, L&T, Kotak Mahindra Bank, M&M, Axis Bank, Maruti Suzuki, TCS and Reliance, showcasing strong confidence in these market giants. Meanwhile, Infosys, InterGlobe Aviation, SBI, ICICI Bank, Bajaj Finance and Trent saw notable selloffs, indicating a strategic shift in fund allocations.

For a comprehensive understanding and more insights, please go through our detailed report.

The Mutual Fund industry’s average AUM dipped by 0.68% to ₹67.58 Lakh Cr in February.

Equity-oriented schemes extended their positive streak, though net inflows dropped 26%.

Sectoral/Thematic funds continued to dominate inflows, attracting the highest investments.

SIP inflows dipped 1.52% to ₹25,999 Cr.

Index Funds and Other ETFs maintained steady inflows, reflecting investors’ preference for passive strategies.

The average AUM of debt funds rose 3.21% in February, despite an outflow of ₹6.56K Cr.

Liquid funds recorded the highest inflows of ₹4.98K Cr.

For an in-depth exploration, read through our comprehensive Mutual Fund Flow Report for February, 2024.

Financial Services: The Biggest Casualty – FPIs aggressively sold ₹6,991 Cr in February, making it the most offloaded sector. The YTD outflows surged to ₹31,940 Cr, reflecting deep concerns over banking and financial stability.

FPI Sell-Off Hits FMCG, Auto, Capital Goods, Construction & Power – Foreign investors continued their selling spree across major sectors. FMCG faced ₹6,904 Cr outflows in February, totaling ₹12,332 Cr YTD, while Capital Goods lost ₹4,464 Cr, with YTD exits at ₹10,161 Cr.

FPIs Bet Big on Telecom & Chemicals – Foreign investors remained bullish on Telecommunication, investing ₹7,998 Cr in February, bringing YTD inflows to ₹8,142 Cr, making it the top sector of choice. Chemicals also attracted steady interest, with ₹429 Cr inflows in February, pushing total YTD investments to ₹784 Cr.

2025 Off to a Rough Start – With February’s outflows, FPIs have now pulled out a staggering ₹1,12,601 Cr from Indian equities in the 2025 calendar year, underscoring their cautious stance amid global uncertainties.

For a comprehensive understanding and more insights, please go through our detailed report.