Portfolios

Equity Mutual Funds 2024: A Year of Resilience and Record-Breaking Growth

Equity Mutual Funds Soar in 2024 with 40% Net AUM Surge to ₹30.58 Lakh Cr – In 2024, equity mutual funds witnessed a phenomenal surge, with Net Assets Under Management (AUM) climbing 40.30% to ₹30.58 Lakh Cr.

Equity Mutual Funds Hit Record Inflows of ₹3.94 Lakh Cr in 2024 – Equity mutual fund inflows for 2024 reached an all-time high of ₹3.94 Lakh Cr, with October and December standing out as the months with the highest contributions.

Parag Parikh Flexi Cap Leads 2024 Equity Inflows as Top 10 Equity Schemes Capture 30% Share – In 2024, Parag Parikh Flexi Cap Fund emerged as the most popular equity scheme, attracting the highest inflows, followed by SBI Contra Fund and Motilal Oswal Midcap Fund. Despite nearly 500 equity schemes in the market, the top 10 funds captured over 30% of total inflows, exceeding ₹1.20 Lakh Cr. The top 15 funds secured more than 40%, amounting over ₹1.6 Lakh Cr, highlighting a strong investor preference for select, high-performing schemes.

Mid-Cap Moves – Among the top-traded mid-cap stocks, many schemes invested in companies such as OFSS, HPCL, Godrej Properties, Torrent Power and Bharat Forge. Meanwhile, several equity schemes chose to sell holdings in Coforge, Persistent Systems and Dixon Technologies.

Small-Cap Shifts – Among the most actively traded small-cap stocks, various equity schemes directed their investments towards companies such as Apollo Tyres, Nuvama Wealth Management, TBO Tek, Radico Khaitan and Kalpataru Projects International, while notable disinvestment occurred in MCX.

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

The Mutual Fund industry’s average AUM reached a record ₹69.33 Lakh Cr in December, rising by 1.88% despite net outflows of ₹80,355 Cr, closing CY 2024 with a robust 35.70% AUM growth.

Equity-oriented schemes garnered ₹41,156 Cr in December, marking the second-highest monthly inflow ever and extending the streak of positive inflows to 46 months, the longest on record.

Sector/Thematic funds more than doubled their inflows to ₹15,332 Cr from ₹7,658 Cr, with all equity categories reporting positive net inflows for the third consecutive month in CY 2024.

SIP inflows reached an all-time high, surpassing ₹26,000 Cr for the first time and touching ₹26,459 Cr in December, up from ₹25,320 Cr in November.

Debt mutual funds witnessed a significant outflow of ₹1.27 Lakh Cr in December, reversing November’s inflows of ₹12,916 Cr, with liquid funds leading the outflows at ₹66,532 Cr.

CY 2024 ended on a positive note for debt funds, with a 22% rise in average AUM, reaching ₹16.98 Lakh Cr compared to ₹13.92 Lakh Cr in the previous year.

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

FPIs Bet on IT, Realty, Healthcare and More – In December, FPIs invested in Information Technology, Realty, Healthcare, Consumer Services, Capital Goods, Financial Services, Services and Construction sectors, signaling a cautious yet targeted approach amid broader market uncertainties.

FPI Record Selloff Hits Key Sectors: Oil & Gas, Auto and FMCG – In November, FPIs significantly reduced holdings across crucial sectors like Oil & Gas, Automobile & Auto Components, FMCG, Power, Consumer Durables, Construction Materials and Diversified. This widespread selloff underscores rising global uncertainties and intensifying market pressures.

DIIs Provide Market Cushion with ₹34,195 Cr Investment in December – Domestic Institutional Investors (DIIs) set a record in 2024 with net purchases exceeding ₹5.26 trillion, breaking the ₹2.8 trillion annual investment record from 2022.

Mutual Funds’ Record-Breaking ₹4.34 Trillion Investment in 2024 – Mutual Funds led the charge in record-breaking DII investment, contributing ₹4.34 trillion out of the ₹5.26 trillion total in 2024. In December, they bolstered the Indian equity markets with an investment of ₹28,138 Crs, cementing their role as a market stabilizer.

FPIs Spark Record-Breaking Debt Market Investment in 2024 – FPIs poured ₹12,512 Cr into the Indian debt market in December. Cumulative FPI debt investment surged to ₹1,52,775 Cr, marking an all-time high for Indian debt markets. This milestone surpasses the previous record of ₹1,48,808 Cr set in 2017.

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

Mutual Fund Average AUM Rises 3.6% in Oct-Dec 2024, Ends 2024 with a Spectacular 39% Growth!

Quant Mutual Fund Sees AAUM Decline: Quant Mutual Fund stands out as the only fund to report a decline in Average AUM during the last quarter.

Mutual Funds on the Rise: Despite market corrections in the October-December quarter, the average AUM rose by 3.6% to ₹68.62 Lakh Cr. The mutual fund industry posted an impressive 39.39% growth in 2024, powered by record SIP inflows and a surge in New Fund Offers(NFOs).

SBI MF AAUM Crosses ₹11 Lakh Cr : SBI Mutual Fund’s Average Assets Under Management (AAUM) reached a new milestone, crossing ₹11 lakh crore in the last quarter. Strengthening its industry leadership, the fund house has retained its top position for the 20th consecutive quarter, reflecting unwavering investor trust and sustained excellence.

Mutual Fund Rankings Remain Unshaken: The mutual fund landscape showcases remarkable stability, with the top eight and top three firms holding their ranks for 14 consecutive quarters. Notably, the top 10 Asset Management Companies (AMCs) have retained their positions, underscoring a period of consistent dominance within the industry.

ICICI Mutual Fund Leads Absolute Growth: In the latest quarter, ICICI Mutual Fund emerged as the top gainer in absolute average AUM growth, followed by HDFC and Nippon India Mutual Fund. This surge highlights the fierce competition and dynamic growth fueling the mutual fund industry.

Rising Stars in Mutual Funds: Invesco, Groww, Old Bridge, Helios, JM Financial and Navi Mutual Fund have climbed the mutual fund rankings, showcasing significant progress over previous quarters.

Top 10 AMCs Drive Industry Growth: The top 10 Asset Management Companies (AMCs) have been instrumental in the mutual fund industry’s stellar performance, accounting for a remarkable 77% of the Average AUM growth this past quarter.

Top Percentage Growth Performer: In the last quarter, Motilal Oswal, Old Bridge, Groww, Zerodha and Helios Mutual Funds recorded impressive percentage growth in Average AUM, marking remarkable progress compared to previous quarters.

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

Market Cap Cutoffs Rise in Latest Stock Categorization :- In the recent stock categorization, the Large Cap cutoff for average market cap over last 6 months has risen to ₹1 lakh Cr from ₹67,000 Cr. Similarly, the Mid Cap cutoff for average market Cap has increased to ₹33K Cr from ₹22K crore.

AMFI’s Latest: 11 Stocks Elevated to Large Cap :- In the latest AMFI stock categorization, eleven notable stocks have been elevated from the Mid Cap to the Large Cap category including recent IPO giants Hyundai, Swiggy, Bajaj Housing Finance, and NTPC Green as direct entries. Other notable upgrades include CG Power, Cummins India, Polycab, Indus Towers, Rail Vikas Nigam, ICICI Pru Life and Info Edge.

Key Downgrades: 11 Stocks Move from Large Cap to Mid Cap :- In the recent reclassification, Adani Total Gas, Apollo Hospitals, BHEL, Canara Bank, IDBI Bank, IndusInd Bank, Jindal Steel, Union Bank, NHPC, Shree Cements and Mankind Pharma have moved from the Large Cap to the Mid Cap category.

Stock Upgrades and Downgrades: Small Cap to Mid Cap Shifts :- In the latest reclassification, 9 stocks have been upgraded from Small Cap to Mid Cap. Meanwhile, 13 stocks have been downgraded from Mid Cap to Small Cap.

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

As we step into 2025, let’s reflect on the trends and milestones that shaped the markets last year:

10-Year G-Sec Yields: Declined by 42 bps, driven by fiscal deficit control, FPI inflows, and speculation around monetary easing.

Volatile Liquidity: India’s banking system faced fluctuations due to seasonal tax flows, government spending, and global economic factors.

CPI Inflation: Averaged 5% (Jan–Nov), hitting a 59-month low in July before rising towards the year-end.

Forex Reserves: Reached a record $704.89 billion before declining to $644.39 billion by December.

Indian Rupee Hits Record Low: Depreciated by 3%, pressured by a strong US Dollar and widening trade deficits.

Gold’s Rise: Outperformed all major asset classes, reaching ₹79,362/10g, with projections to soar further in 2025.

Global Market Trends: Slowing growth in emerging economies like India and China. Nasdaq surged 28.6%, while the FTSE 100 lagged at 5.69%.

Monetary Policy Expectations for 2025: Central banks globally are expected to adopt a cautious approach, with the RBI and others likely to ease rates in response to evolving economic conditions.

Best Performing Mutual Fund schemes of 2024: Let’s look into top-performing mutual fund schemes across categories in the report attached.

For the full report and detailed insights, click on the link below:

As 2024 draws to a close, investors eagerly await the much-anticipated Santa Claus Rally, a seasonal trend that has consistently brought cheer to markets worldwide.

A Santa Claus rally is a seasonal phenomenon that involves a rise in stock prices during the last 5 trading days in December and the first 2 trading days in the following January. It refers to the jump in stock prices in the week between Christmas and New Year’s Day.

During the Santa Claus Rally of 2023, the Indian benchmark index Nifty recorded a modest but positive return of 0.79%, marking its sixth straight year of gains and reinforcing the rally’s reputation as a dependable year-end phenomenon in the Indian market. Historically, this rally has failed only three times in the past 24 years, underlining its reliability in the Indian equity market.

This year, however, the landscape is different. With central banks across the globe adjusting their rate strategies, inflationary pressures persisting and geopolitical tensions casting a shadow, the question arises—will the Santa Claus Rally live up to its legacy?

The Indian markets are feeling the heat this December, with the Nifty index posting negative returns of 2.25% so far. Yet, an impressive 8.5% YTD gain in 2024 keeps the festive optimism alive. Will the Santa Claus Rally bring a festive turnaround? Let’s wait and watch!

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

FPIs Shift to Buying Mode: Focus on Financials, IT, Realty and More – Following significant selloffs in October and November, FPIs have turned buyers in the first half of December, signaling a shift in strategy. Their investments are now focused on sectors like Financial Services, Information Technology and Realty, along with Consumer Services, Capital Goods, Healthcare, Construction and Metal & Mining.

FPIs Divest Aggressively in Oil & Gas Sector – In the first half of December, FPIs executed a significant selloff in the Oil & Gas sector, disinvesting ₹5,337 crore. Other sectors that witnessed selloffs include Automobiles & Auto Components, FMCG, Consumer Durables, Power and Construction Materials, reflecting a strategic reallocation of investments by foreign players.

FPIs Back with a Bang: ₹22,766 Cr Pours into Indian Equities in December’s First Half – FPIs shifted gears in December, becoming net buyers after October and November sell-off. Equity purchases through secondary markets hit ₹14,435 Cr in the first half of December, sparking a recovery from November lows. Total FPI investment, including primary market investments and others, surged to ₹22,766 Cr.

FPIs Spark Record-Breaking Debt Market Investment in 2024 – 2024 is shaping up as a landmark year for FPI investments in Indian debt markets. FPIs poured ₹12,374 Cr into the Indian debt market in the first half of December. Cumulative FPI debt investment surged to ₹1,52,637 Cr, marking an all-time high for Indian debt markets. This milestone surpasses the previous record of ₹1,48,808 Cr set in 2017.

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

Equity MFs Target High-Potential IPOs in November: More than 75 equity mutual fund schemes actively participated in November’s standout IPOs, including Swiggy and NTPC Green Energy. Other notable offerings, such as Sagility India, Acme Solar Holdings and Suraksha Diagnostic Ltd, also attracted significant investments. This trend highlights fund managers’ strategic focus on high-potential market entrants to drive portfolio growth.

Top New Investment Picks by Equity Mutual Funds: Several equity mutual fund schemes have demonstrated a strong preference for fresh investments in companies such as Wockhardt, KEI Industries, Zomato, Varun Beverages, Interglobe Aviation, Affle India, Hindalco Industries and Bharat Electronics.

Equity Schemes Exit Key Positions in Major Companies: Several equity schemes have fully exited their positions in companies such as Cholamandalam Investment & Finance, NTPC, Cummins India, Honasa Consumer, Ola Electric Mobility, Power Grid, Bajaj Auto, Alkem Laboratories, Hero Motocorp, Premier Energies, Brigade Enterprises and Waaree Energies.

Mid-Cap Moves: Among the top-traded mid-cap stocks, many schemes invested in companies such as KEI Industries and Lupin. Meanwhile, several equity schemes chose to sell holdings in Coforge, Voltas, The Indian Hotels Company, FSN E-Commerce(NYKAA), Info Edge, Fortis Healthcare, Oberoi Realty and Mphasis.

Small-Cap Shifts: Among the most actively traded small-cap stocks, various equity schemes directed their investments towards companies such as Wockhardt, Medplus Health Services, Welspun Corp, PNB Housing Finance, Timken India and Aster DM Healthcare, while notable disinvestment occurred in MCX, Radico Khaitan and Aditya Birla Real Estate.

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

The Mutual Fund industry’s average AUM dipped by 0.66% in November, settling at ₹68.05 Lakh Cr, even as net inflows surged to ₹60,295 Cr.

Equity oriented schemes saw ₹35.94K Cr inflows in November, marking an extraordinary 45 month streak of positive contributions. However, a slight market correction led to a dip in the Average AUM at ₹29.79 Lakh Cr.

Sectoral and Thematic funds faced a significant drop, with inflows plunging to ₹7,658 Cr from ₹12.27K Cr in October.

Arbitrage funds saw a sharp reversal with an outflow of ₹1,332 Cr in November, compared to inflow of ₹7.18K Cr in October, leading to a 75% drop in Hybrid fund inflows.

Exchange-Traded Funds (ETFs) saw inflows plummet to ₹1,531.2 Cr in November, a sharp decline from ₹13,441.8 Cr recorded in October.

The average AUM of debt funds increased by 1.89% in November, despite a sharp 92% drop in net inflows to ₹12,916 Cr, compared to ₹1,57,402 Cr in October.

Systematic Investment Plans (SIPs) once again garnered ₹25,320 Cr in November, maintaining near-parity with October’s ₹25,323 Cr, reflecting consistent investor confidence.

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