Author: Abhijit Powar

The Mutual Fund industry’s average AUM grew by 2.06%, reaching an impressive ₹65.04 lakh crore in August.

SIP investments hit a record high of ₹23,547 crore, marking 14 consecutive months of all-time high inflows.

Large Cap Funds witnessed a nearly 300% surge in inflows.

In contrast, Hybrid schemes saw a 43% decline in inflows.

Passive funds maintained their steady momentum, despite a slight decrease in inflows.

The average AUM of Debt Funds increased by 1.67%, despite a 62% decline in inflows, with Overnight Funds receiving the highest inflows.

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

FII Strategy Shift: Buying in Equity Markets – After a strategic shift in the second half of August, FIIs turned buyers in the domestic equity market, recording net purchases of ₹7,322 Crs. Notably, ₹12,872 Crs was channeled into primary markets, such as IPOs, signaling their confidence in new opportunities.

FIIs Boost Indian Debt Market in 2024’s Best Year Yet – FIIs have demonstrated strong confidence in the Indian debt market, making a significant investment of ₹17,953 Crs in August alone. With total debt inflows reaching ₹108,907 Crs in 2024 so far, this year is shaping up to be a record-breaking one for FII debt investments.

Mutual Funds Extend Equity Buying Streak – Mutual Funds continued their buying streak in August, injecting ₹31,685 Crs into the domestic equity markets.

FIIs Offload Heavily in Financial Services and Key Sectors – Despite being net buyers in August, FIIs executed substantial selloffs in the Financial Services sector, unloading a hefty ₹12,008 Crs from Financial Services. Other sectors facing significant FII exits included Metals & Mining, Construction Materials, Automobiles & Auto Components, Realty and Power.

FIIs Maintain Investment in Defensive and Growth Sectors – FIIs showed a strong preference for investments in the Healthcare, Information Technology, Consumer Durables, Consumer Services, FMCG,  Oil & Gas and Telecommunication  sectors in August.

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

For the first time, the Sector/Thematic Fund category has emerged as the leading category in terms of Net AUM within the Equity Mutual Fund segment, achieving an all-time high Net AUM of ₹4,21,112 Crs, surpassing all other categories of Equity MF schemes.

Many equity mutual fund schemes have demonstrated a significant inclination towards fresh investments in well-established companies such as ITC, Vedanta, ONGC, Pitti Engineering, Techno Electric & Engineering Company, PNB Housing Finance, Crompton Greaves Consumer Electricals, Indus Towers, MCX, HDFC Life Insurance, ICICI Pru Life Insurance and Hindustan Unilever.

Several equity schemes have completely exited their holdings in companies such as Tata Steel, IndusInd Bank, Kotak Mahindra Bank, HDFC Bank, Bank of Baroda, TCS, The Ramco Cements, Vodafone Idea, BSE, Angel One and Container Corporation of India.

Among the most actively traded small-cap stocks, various equity schemes directed their investments towards companies such as Crompton Greaves Consumer Electricals, PNB Housing Finance, MCX, Sobha, Birlasoft, Whirlpool of India and Sun TV Network. Concurrently, there was notable disinvestment from Aditya Birla Fashion & Retail, Cholamandalam Financial Holdings and Laurus Labs.

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

The Mutual Fund industry’s Avg. Assets Under Management soared by 5.50%, reaching an impressive ₹64.71 Lakh Crs in July.

The Avg. AUM of Equity Oriented Schemes saw a robust increase of 6.2%, reaching ₹28.50 Lakh Crs.

The Sectoral/Thematic funds attracted inflows of ₹18.39K Crs in July, slightly down from the ₹22.35K Crs  received in June.

Hybrid schemes witnessed a remarkable doubling in net inflows, reaching ₹17.44K Crs with major inflows in Arbitrage fund category.

The Avg. AUM of Debt Funds climbed by 5.05%, reaching ₹15.95 Lakh Crs in July, fueled by a net inflow of ₹1.19 Lakh Crs.

Investment through SIPs hit a new all-time high of ₹23,332 Crs in July, surpassing the previous record of ₹21,262 Crs set in June.

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

Mutual Funds Boost Equity Investments Post-Budget – Mutual Funds ramped up their equity investments after the budget. Of the total ₹20,601 Crs invested in equities, a substantial ₹19,436 Crs was directed into the domestic equity market during the last seven trading sessions of July.

FIIs Shift to Selling Post-Budget Yet Invest ₹32,365 Crs in July – FIIs continued their robust investments in Indian equity markets until the budget. However, following the budget, FIIs shifted gears and began selling in the equity market. Despite this change in strategy, they still managed to invest a notable ₹32,365 crore in July.

FII’s Debt Market Investments Surge – FIIs have demonstrated robust confidence in the Indian debt market, making their second-largest investment of the year at ₹22,363 Crs in July. With overall debt investments reaching ₹90,988 crore so far this calendar year, 2024 is shaping up to be the best year yet for FII debt investment.

FII Buying in Key Sectors – FIIs showed a strong preference for investments in the Information Technology, Metals & Mining, Automobile & Auto Components, Healthcare, Capital Goods, Consumer Services and Telecommunication sectors in July.

FII Selling in Key Sectors – FIIs sold off their holdings in the Financial Services, Power, Construction, Chemicals, Consumer Durables and Utilities  sectors in July.

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

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In the first half of 2024, Equity Mutual Funds attracted massive inflows totaling ₹1,65,502 Crs, with a significant 42% of these investments channeled into Sector/Thematic Funds alone. This trend persisted in June, with an impressive ₹22352 Crs or 55% of June inflows being allocated to Sector/Thematic Funds.

Many equity mutual fund schemes have demonstrated a significant inclination towards fresh investments in well-established companies such as Indus Towers, Craftsman Automation, Mphasis,  ZF Commercial Vehicle Control Systems, Transformers & Rectifiers, Kotak Mahindra Bank, The Ramco Cements, HDFC Bank, Interglobe Aviation, Mahindra & Mahindra, Samvardhana Motherson International and Hindustan Unilever.

Several equity schemes have strategically exited their holdings in companies such as ONGC, REC, NHPC, NTPC, BHEL, Max Financial Services, Container Corporation of India, Adani Power, Canara Bank, Punjab National Bank, Bank of Baroda, IndusInd Bank and Coforge.

Among the most actively traded small-cap stocks, various equity schemes directed their investments towards companies such as Craftsman Automation, Kalpataru Projects, The Ramco Cements, Sansera Engineering, Aster DM Healthcare and Sun TV Network. Concurrently, there was notable disinvestment from Whirlpool of India, Cholamandalam Financial Holdings and Crompton Greaves Consumer Electricals.

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

The Mutual Fund industry’s average AUM surged by 4.66% to ₹61.33 lakh crore in June.

The average AUM of Equity Oriented Schemes increased by 7% to ₹26.83 lakh crore.

Net Inflows into open-ended equity funds remained positive for the 40th consecutive month in June, reaching a record high of ₹40.61K crore.

Sectoral/Thematic fund inflows hit another record of ₹22.35K crore, driven by interest in NFOs, with nine new funds including SBI Automotive Opportunities Fund and Mahindra Manulife Manufacturing Fund collecting ₹12.97K crore.

Hybrid schemes experienced a decline of 51% in net inflows to ₹8.86K crore.

The average AUM of Debt Funds rose by 1.08% to ₹15.18 lakh crore in June, despite a net outflow of ₹1.08 lakh crore.

Investment through SIPs reached an all-time high for the 12th consecutive month!

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

In the latest AMFI stock categorization, seven notable stocks have been elevated from the Mid Cap to the Large Cap category. This prestigious upgrade includes industry leaders such as Hero Motocorp, Zydus Lifesciences, JSW Energy, NHPC, BHEL, Samvardhana Motherson International and Bosch.

In the recent upgrade from Small Cap to Mid Cap category, a total of 19 stocks have been promoted to the Mid Cap category. Among these, two recent IPO stocks, Bharti Hexacom and Go Digit Insurance, have made their debut in the Mid Cap segment.

Tata Chemicals, Vedant Fashions, The Ramco Cements, and Piramal Enterprises have been
downgraded to the Small Cap category.

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

Indian Markets Reach All-Time High with Robust FII and DII Investments – Indian markets reached an all-time high, marking a significant turning point driven by FIIs buying into the equity market. FIIs have now become net buyers for the calendar year, purchasing equities worth ₹26,565 Cr in June. Domestic Institutional Investors (DIIs) also supported the market with investments totaling ₹28,633 Cr in June. 

FII Investment Preferences in June – In June, FIIs demonstrated a strong preference for investments in the Financial Services, Telecom, Consumer Services, Healthcare, Realty and Chemicals sectors.

FII Selling in Key Sectors – FIIs sold off their holdings in the Metal & Mining, Construction, Oil & Gas, Power, Information Technology, and FMCG sectors in June.

Mutual Fund’s Investment Pace Slows Down -In this record-breaking market, the pace of mutual fund investments has slowed down in June compared to May. Despite the high market performance, Mutual Funds (MFs) invested ₹20,359 Cr in domestic equities in June.

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