Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | AMFI Registered MF Distributor | ARN-0158
Equity Mutual Fund AUM Declines 1.06% in October Amid Mid- and Small-Cap Corrections, While Industry AUM Rises 0.90%: Equity mutual funds’ net AUM declined 1.06% MoM to ₹37.15 lakh crore in October, from ₹37.54 lakh crore in September, a reduction of nearly ₹40,000 crore. In contrast, overall MF industry AUM rose 0.90% to ₹83.39 lakh crore, from ₹82.64 lakh crore. Despite gains in large-cap indices, broader markets corrected, with the Nifty Midcap 150 falling 3.75% and Nifty Smallcap 250 declining 5.81%. The decline in equity AUM reflects valuation pressure in mid- and small-cap stocks, outweighing fresh inflows and highlighting divergent trends in industry and equity fund AUM.
Flexi Cap Funds Retain Top Spot with ₹5.91 Lakh Crore AUM, While Mid and Small Cap Funds Witness Declines. Flexi Cap Funds remained the largest equity mutual fund category, with net AUM increasing to ₹5.91 lakh crore in October, from ₹5.88 lakh crore in September. Mid Cap Funds followed at ₹5.03 lakh crore, declining from ₹5.14 lakh crore, making Flexi Cap and Mid Cap Funds the only two equity categories with AUM above ₹5 lakh crore each. Meanwhile, Small Cap Fund AUM declined to ₹4.41 lakh crore from ₹4.62 lakh crore, reflecting the impact of sharp corrections in broader markets. The divergence highlights relative resilience in diversified equity strategies, while mid- and small-cap categories faced valuation pressure despite continued investor inflows.
Mutual Funds Show Strong Appetite for IPOs, with Jio Platforms, Zetwerk and Bonfiglioli Leading Fresh Additions. Equity mutual funds demonstrated strong participation in new offerings, with 95 schemes adding Jio Platforms and collectively acquiring 0.46% of the company. Other notable IPO additions included Zetwerk Manufacturing Businesses (59 schemes; 8.72% stake acquired), Bonfiglioli Transmissions (46; 9.30%), Tonbo Imaging India (25; 10.81%), HD Fire Protect (19; 5.55%) and Paras Healthcare (18; 7.16%). The relatively higher stakes acquired in Tonbo Imaging, Bonfiglioli Transmissions, Zetwerk and Paras Healthcare indicate significant mutual fund participation in these companies.
Mutual Funds Add Fresh Positions Across Technology, Banking, Capital Markets and Industrials. Beyond new offerings, mutual fund schemes initiated exposure to Persistent Systems, Kotak Mahindra Bank, BSE, Ather Energy, One97 Communications, TD Power Systems, Cemindia Projects, Zydus Lifesciences and PTC Industries. These additions reflect diversified investment interest across IT, banking, capital-market infrastructure, electric vehicles, fintech, pharmaceuticals and industrial manufacturing, highlighting selective accumulation in established businesses alongside emerging growth opportunities.
MF Schemes Record Full Exits Across Fintech, IT, Banking, Metals and Automobiles. On the exit side, 20 schemes fully exited PB Fintech, followed by 16 schemes each exiting Swiggy and Tata Steel, and 15 schemes exiting Infosys. Other notable exits included Muthoot Finance, Hindalco Industries, Bajaj Auto, Tata Consultancy Services, Oracle Financial Services Software and Bharat Forge. Additionally, 11 schemes exited IndusInd Bank, while 10 schemes each exited Maruti Suzuki India, National Aluminium Company, Axis Bank and Dixon Technologies, indicating selective portfolio rebalancing across financial services, technology, metals, automobiles and electronics manufacturing. Overall, these exits suggest sectoral rotation and profit booking as mutual funds reassessed individual stock exposures.
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