Knowledge Base

The Mutual Fund industry‘s Avg. AUM surged by 2.78%, reaching ₹58.59 Lakh crore in May.

The average AUM of Equity Oriented Schemes increased by 3.5% to ₹25.07 lakh crore.

Net inflows in equity mutual funds in May are the highest on record since April 2019, when AMFI started reporting monthly mutual fund flows in the current format.

Sectoral/Thematic fund inflows hit a record ₹19.21K crore, driven by NFOs like the HDFC Manufacturing Fund, which garnered ₹9.56K crore.

Hybrid schemes experienced a dip of 9% in net inflows to ₹17.99K crore.

The average AUM of Debt Funds rose by 1.41% to ₹15.03 lakh crore in May.

Funds have flowed into categories with a duration profile of less than a year amid potential volatility due to the ongoing general elections and uncertainty surrounding the interest rate cycle.

Investment via SIPs reached an all-time high of ₹20,904 crore in May!

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

As we approach the exit poll results in the evening and eagerly await the final verdict of the election results on Tuesday, the Indian markets are experiencing significant volatility due to the uncertain outcome. This pivotal moment raises several key questions for investors:

• What should we anticipate in the Indian market?
• How will the Nifty index react?
• What returns can we expect on the Nifty index on election result day or in the near term following the results?

We have analyzed data from 1999 onwards, encompassing five election cycles. In these cycles, the UPA triumphed in two elections, while the NDA secured victory in three.

This report examines Nifty index returns before, on, and after election result dates for the past five elections.

Summary of Key Findings

On Election Result Date: Returns are typically modest and show no significant spikes, indicating that the market had already priced in the anticipated election results or waiting for analysis of the final verdict.

Trend Continuity: The trend of returns 1 month before and 1 month after the election remains the same.

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

In 2024, investment momentum is strongly geared towards Sectoral/Thematic Funds, Large & Mid Cap Funds, Multi Cap Funds and Flexi Cap Funds, making them top choices for investors seeking strategic portfolio diversification.

Several equity mutual fund schemes showed a pronounced preference for new investments in IPOs and FPOs such as Bharti Hexacom, JNK India and Vodafone Idea. They also favored fresh investments in established companies including Kotak Mahindra Bank, Axis Bank, Indus Towers, Angel One, Vedanta, Eicher Motors and National Aluminium Company.

Several equity schemes strategically divested their investments in companies such as Infosys, LTIMindtree, Mphasis, HPCL, BPCL, Biocon, Tata Chemicals, and Tata Steel.

Overall, equity mutual fund schemes were actively purchasing shares in prominent companies including Kotak Mahindra Bank, Axis Bank, Bharti Hexacom, Reliance Industries, HDFC Bank, Sun Pharma, ONGC, Vodafone Idea, Voltas, TCS and HDFC Life Insurance.

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

The Mutual Fund industry’s average AUM increased by 3.65% to ₹57 lakh crs. in April.

The AUM of Equity Oriented Schemes rose by 4.4% to ₹24.20 lakh crs., marking a 38-month streak of net inflows, despite a 16.4% drop in monthly inflows.

Hybrid schemes experienced a 255% surge in net inflows.

Passive funds saw a 10% month-on-month decline in net inflows, with the most significant contributions in Index Funds.

Debt Funds’ AUM increased by 3.21% to ₹14.82 lakh crs.

SIP inflows reached a new milestone, surpassing the ₹20,000 crore mark.

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

Mutual Fund industry’s Avg. AUM increased by 0.88% to ₹55 Lakh Crs in March, despite a net outflow of ₹1.59 Lakh Crs.

Equity Oriented Schemes’ AUM rose by 1.2% to ₹23.20 Lakh Crs, continuing a 37-month streak of net inflows, despite a 16% drop in monthly inflows.

Hybrid scheme inflows declined by 69%, with Arbitrage funds being the exception.

Passive funds saw a 31% month-on-month increase in net inflows, with ETFs leading the way.

Debt Funds’ AUM decreased by 1.30% to ₹14.36 Lakh Crs, facing a net outflow of ₹1.98 Lakh Crs.

SIP inflows continue to hit an all time high, ₹19,271 Crs in March.

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

The landscape of Equity Mutual Funds underwent a dramatic transformation, with Net Assets Under Management (AUM) soaring to a historic ₹23.48 lakh crores in March.

Many equity mutual fund schemes demonstrated a strong inclination for new investments in prominent companies, including Maruti Suzuki, TCS, ITC, HDFC Life Insurance, Tata Chemicals, Samvardhana Motherson International, Jindal Steel & Power and Godrej Consumer.

Several equity schemes strategically exited investments in Jio Financial Services, LTIMindtree, IIFL Finance, HPCL, IREDA, NHPC, Tata Technologies, BPCL and Tata Steel.

Overall, equity mutual fund schemes were actively buying shares in leading companies such as ITC, HDFC Bank, TCS, Kotak Mahindra Bank, Shriram Finance, Maruti Suzuki, Axis Bank, Samvardhana Motherson International and REC.

Among the most actively traded small-cap stocks, various equity schemes directed their investments towards Aster DM Healthcare, NLC India, Aavas Financiers, Aditya Birla Sun Life AMC, GR Infraprojects, CIE Automotive, Hitachi Energy, Crompton Greaves, Apar Industries and Metropolis Healthcare.

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

In an impressive display of resilience and investor confidence, the Mutual Fund industry experienced a remarkable surge, with the Average Assets Under Management (AAUM) increasing by 34% year-on-year to reach ₹54.13 Lakh Crores in the January-March, 2024 quarter.

SBI Mutual Fund solidifies its leadership, holding the top position for a remarkable 17th consecutive quarter.

The mutual fund landscape shows exceptional stability with the top eight and top three firms retaining their ranks for 11 straight quarters. Additionally, the ranking of the top 10 Asset Management Companies (AMCs) remains unchanged, reflecting a period of steady dominance in the industry.

The top 10 Asset Management Companies (AMCs) played a pivotal role in the Mutual Fund industry’s growth, contributing a significant 72% to the increase in Average AUM for the last quarter.

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

The landscape of Indian equity mutual fund schemes transformed dramatically, with Net AUM reaching a historic ₹23.12 Lakh Crs, driven by a wave of investments in Equity NFOs and the consistent allure of SIP contribution.

Uncovering Trends in Equity Scheme Portfolios for February, 2024

• Focus on Oil & Energy: Many equity mutual fund schemes showed a strong preference for new investments in leading companies like BPCL, HPCL, Swan Energy, Oil India, ONGC, Power Grid Corporation, Coal India, Whirlpool of India and LIC. The IPOs of Apeejay Surrendra Park Hotels and Juniper Hotels also emerged as popular investment choices among these funds.
• Exits from Certain Stocks: Several equity schemes made strategic investment exits from Hindalco Industries, Crompton Greaves Consumer Electric, ITC, Ashok Leyland, One97 Communications, Bajaj Finance, HDFC Bank, IREDA, LTIMindtree, Axis Bank, Mphasis, M&M, IndusInd Bank and Kotak Mahindra Bank.

Breaking Down Equity Inflows of February, 2024

• Strong NFOs Collection: SBI MF’s Energy Opportunities Fund collected ₹6,700 Crs from 5 lakh applications, standing out among new launches. Bajaj Finserv Large & Mid Cap Fund and Motilal Oswal Large Cap Fund also saw significant inflows.
• Contra Funds Rising: SBI Contra Fund attracts significant inflows for the second consecutive month in February, underlining its rising popularity among investors.

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

India’s mutual fund industry reached a new high, with Assets Under Management (AUM) crossing ₹54.53 Lakh Crs in February 2024, driven by consistent inflows Equity funds and a remarkable inflows in Debt funds.

Equity mutual funds experienced consecutive inflows for 3 years, registering a 23% increase in February.

Hybrid schemes continued to attract investors with a moderation in net inflow at ₹18,105 Crs and Arbitrage funds remained a popular choice.

Net inflows in of passive funds doubled to ₹9,756 Crs from ₹3,983 Crs.

The average AUM of Debt funds increased by 1.75%, with a net inflow of ₹63,809 Crs.

Corporate bond funds saw an impressive inflow of ₹3,029 Crs from ₹1,301 Crs in the previous month.

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

Emerging Investment Patterns in Equity Mutual Fund Scheme Categories

• Record AUM Achievement: Equity Mutual Fund Schemes’ Net AUM reached an all-time high of ₹22.50 Lakh Crore, propelled by substantial market growth.
• Surging Open-Ended Equity Fund Inflows: Inflows surged by 28% to ₹21,781 Crore in January, marking a continuous positive trend for 35 months.
• Popular Investment Choices: Small Cap, Sectoral/Thematic, and Mid Cap Funds remained the preferred choices at 2024’s outset.
• Impressive Fund Attraction: From April to January 2024, Small Cap Funds drew ₹37,361 Crore with 52% average returns; Sector/Thematic and Mid Cap Funds amassed ₹26,958 Crore and ₹19,401 Crore, with 40% and 47% returns, respectively.

Breaking Down Equity Inflows of January

• Leaders in Active Fund Categories: Parag Parikh Flexi Cap Fund, Quant Small Cap Fund, and Nippon India Large Cap Fund stood out as the leading equity inflow schemes in 2024.

Uncovering Trends in Equity Scheme Portfolios for January

• Preferred Stocks for New Investments: Equity mutual fund schemes showed a preference for investing in ONGC, BHEL, Biocon, Voltas, Sobha, Gujarat Gas, Lupin, IndusInd Bank, Cipla, and Bank of India. Initial Public Offerings (IPOs) like Medi Assist Healthcare Services and Jyoti CNC Automation were also popular investment choices.
• Exits from Certain Stocks: Some equity schemes completely exited investments in Polycab India, Zee Entertainment Enterprises, The Federal Bank, Navin Fluorine International, Bandhan Bank, Bajel Projects, Mahindra & Mahindra Financial Services, and LTIMindtree.

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