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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.

India’s mutual fund industry reached a new high, with Assets Under Management (AUM) crossing ₹52.89 Lakh Cr in January 2024, driven by consistent inflows Equity funds and a remarkable inflows in Debt funds.

Equity mutual funds experienced their 35th consecutive month of inflows, registering a 28% increase.

Hybrid schemes continued to attract investors with a net inflow of ₹20.64k Cr, and Arbitrage funds remained a popular choice.

Net inflows in of passive funds increased by 6 times to ₹3.98k Crs from ₹573 Crs.

The average AUM of Debt funds increased by 2.67%, with a net inflow of ₹ 76.47k crores.

Corporate bond funds saw an impressive inflow of ₹1.3k crs, significantly higher than the ₹188 crs inflow recorded in December.

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

• Unprecedented Growth: Net AUM of Equity Mutual Funds hit ₹21.79 Lakh Crore.
• Consistent Inflows: 34th straight month of net inflows, up 9.40% to ₹16,997 Crore in December.
• Top Choices: Small Cap, Sectoral/Thematic and Mid Cap Funds dominated 2023, attracting 66% of total inflows; Large-cap and Focused Funds saw negative flows.
• Sectoral Shifts: Sectoral/Thematic Funds led December inflows, followed by Small Cap and Large & Mid Cap Funds.

Breaking Down Equity Inflows of December

• Leading New Funds: Axis India Manufacturing Fund alone attracted over ₹3,400 Crore; Motilal Oswal Small Cap Fund, WOC Large & Mid Cap Fund, and DSP Banking & Financial Services Fund collectively brought in more than ₹2,300 Crore.
• Active Fund Winners: Parag Parikh Flexi Cap Fund, Quant Small Cap Fund, and Nippon India Large Cap Fund were the top recipients in active fund categories.

Exploring Equity Scheme Portfolio Trends in December 2023

• New Investments: Preference for investing in Indian Bank, Bank of India, Kaynes Technology India, Mankind Pharma, CAMS, Dr. Reddy’s Laboratories and select IPOs like Indian Shelter Finance Corporation, Inox India, DOMS Industries, Happy Forging.
• Broad Buying Trends: Purchases in Indian Bank, Bank of India, Mankind Pharma, HDFC Bank, ICICI Bank, Reliance Industries, Kotak Mahindra Bank, Axis Bank, SBI Life Insurance Company.
• Mid Cap Stocks Activity: Active trading in mid-cap stocks, with sales in Coforge, HPCL, PI Industries and investments in Apollo Tyres, Mphasis, Voltas.

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 ₹51.09 Lakh Cr in December 2023, driven by consistent inflows and a rally in the equity market.

Equity mutual funds experienced their 34th consecutive month of inflows, registering a 9.4% increase. However, Large Cap funds saw an outflow of ₹281 Cr.

Hybrid schemes continued to attract investors with a net inflow of ₹15k Cr, and Arbitrage funds remained a popular choice.

The Avg. AUM of passive funds increased by 6.4%.

The average AUM of Debt funds decreased by 1.28%, with a net outflow of Rs. 75.56k crores. This decline was primarily due to outflows from Liquid, Low Duration, and Money Market funds, largely attributed to quarterly advance tax payments. This indicates a cyclical movement in debt funds influenced by tax-related liquidity needs.

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

The Mutual Fund industry saw a remarkable surge of 22.25% in Average AUM YoY to ₹49.22 Lakh Crores in the Oct-Dec 2023 quarter. This notable increase reflects a robust growth of 4.74% over the previous quarter’s ₹46.99 Lakh Crores, showcasing the industry’s resilience and investor confidence during a standout financial period.

SBI Mutual Fund solidifies its leadership, holding the top position for a remarkable 16th consecutive quarter.

The top 10 Asset Management Companies (AMCs) played a pivotal role in the Mutual Fund industry’s growth, contributing a significant 68% to the increase in Average AUM for the last quarter.

In the December quarter, Bajaj Finserv Mutual Fund, WhiteOak Capital Mutual Fund, Quant Mutual Fund, 360 ONE Mutual Fund, and Mahindra Manulife Mutual Fund demonstrated notable performance in terms of percentage growth in Average AUM, compared to the previous quarter.

Old Bridge Mutual Fund, Helios Mutual Fund, and Zerodha Mutual Fund are the latest entrants in the Mutual Fund industry, marking a new phase of diversity and competition in the sector.

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

As we approach the final trading week of 2023, a palpable excitement is brewing among traders and investors, fueled by the prospect of witnessing an official Santa Claus Rally.

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.

Since 1950, the S&P 500 index has gained an average of 1.3% during Santa Claus rally periods. Now the S&P 500 index teeters on the brink of a record-shattering feat, a mere 1% shy of surpassing its highest close. This air of anticipation is not just confined to Wall Street; it resonates across the globe.

Indian Market Triumph: A Year of Stellar Gains

In the vibrant markets of India, the year has been marked by a remarkable ascent, with a formidable 17% gain in Nifty so far. This impressive rally didn’t just materialize out of thin air; its seeds were sown twelve months ago. Those pivotal seven days at the year’s dawn saw the Indian markets leap by 1.4% in 2022, setting the stage for a year of robust financial growth.

Since 2000, average monthly return of Nifty is 1.09% whereas average return during Santa Claus Rally periods is 2.32%. In last 23 years, Nifty gave negative returns just 3 times during this period.

Looking Ahead: Hopes for a Prosperous 2024

As we stand on the cusp of 2024, there’s a collective hope for a verdant conclusion to this year, laying the groundwork for yet another bullish surge in the markets. This anticipation isn’t just about numbers and percentages; it’s a reflection of the enduring spirit of the market, resilient and ever-evolving, mirroring the hopes and aspirations of its myriad participants.

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

In the dynamic world of Equity Mutual Fund Schemes, November was a month of both triumph and transition. The Net Assets Under Management (AUM) soared to an extraordinary ₹20.33 Lakh Crore, a testament to the resounding success of Indian equity markets. However, it was also a month that saw a 22% dip in inflows, as they descended from ₹19,957 Crore in October to ₹15,536 Crore.

The spotlight has been on Small Cap, Mid Cap and Sectoral/Thematic Funds, which have become the investment products of choice in 2023. The Small Cap Fund category, in particular, has stood out, attracting a substantial ₹37,178 Crore in net inflows since the beginning of the year.

The inflow surge in November was propelled by the debut of six new equity funds, accumulating an impressive ₹1,907 Crore in investments. Within this exciting lineup, the Aditya Birla SL Transportation & Logistics Fund, Helios Flexi Cap Fund, Quant Momentum Fund and Kotak Consumption Fund shone as standout performers, collectively drawing in over ₹1,800 Crore in investments.

For diversifying their portfolios, equity mutual fund schemes have embarked on fresh investments in over 180 small cap stocks.

Several equity mutual fund schemes opted for fresh investments in a diverse range of companies, including Tata Technologies, Indian Renewable Energy Development Agency, Flair Writing, Apar Industries, CG Power, Zomato, Bajaj Finance, Bajaj Auto, Lupin, PFC, Hero MotoCorp and Alkem Laboratories.

In the recent period, certain equity schemes made complete exits from their investments in Suzlon Energy, Bharat Forge, MTAR Technologies, Jio Financial Services, Carborundum Universal, SBI, Maruti Suzuki, Indraprastha Gas, DLF and Ashok Leyland.

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

Overall Mutual Fund Industry Growth: Steady Increment of 1.97% in average AUM to reach an impressive ₹48.74 Lakh Crs with new inflow of ₹25.61K Crs in November.

Equity Fund Inflows: Inflow dipped by 22% to ₹15.54k Crs in November compared to October month with positive inflows across all equity fund categories, including hybrid schemes.

Equity Investment Trends: Small Cap and Mid Cap funds are stealing the spotlight with a whopping ₹3,699 Crs pouring into Small Cap funds and ₹2,666 Crs finding its way into Mid-Cap investments.

SIP Contribution: Record-setting SIP inflows at ₹17,073 Crs for the month of November.

Debt Fund Market Outflows: The Debt segment experienced a significant shift in November as debt mutual funds saw net outflows of ₹4,707 Crs. This marked a notable contrast to the ₹42,634 Crs net inflows witnessed in October.

Corporate Bond and Ultra Short Duration Fund Outflows: Corporate bond funds witnessed net outflows of ₹1,578 Crs, while ultra-short duration funds experienced net selling of ₹1,866 Crs.

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

In the dynamic landscape of equity mutual funds, October 2023 has marked a significant milestone. The month witnessed an impressive surge in inflows, reaching a remarkable ₹19,957 Crore, surpassing September’s ₹14,091 Crore. This influx not only represents the third highest monthly figure for the year but also denotes the fourth consecutive month where all equity fund categories enjoyed positive net inflows.

The spotlight has been on Small Cap, Mid Cap and Sectoral/Thematic Funds, which have become the investment products of choice in 2023. The Small Cap Fund category, in particular, has stood out, attracting a substantial ₹33,479 Crore in net inflows since the beginning of the year.

In terms of AMC-wise distribution of equity inflows, ICICI Prudential AMC, Nippon Life India AMC, HDFC AMC, Quant AMC and Kotak Mahindra AMC collectively accounted for over 65% of the total equity inflows in the month of October.

The active fund category saw Parag Parikh Flexi Cap, Quant Small Cap and ICICI Pru Innovation Funds emerging as significant beneficiaries. Meanwhile, in the passive fund arena, Nippon India ETF Nifty 50 BeES, ICICI Pru Nifty 50 ETF and others have been at the forefront of attracting inflows.

Further diversifying their portfolios, equity mutual fund schemes have embarked on fresh investments in over 500 small cap stocks. Firms like BSE Ltd, One97 Communications and Tata Motors have been popular picks, while others such as Ideaforge Technology and Bank of Baroda saw complete exits by some schemes.

It is very interesting to know which schemes received major inflows, which schemes faced redemption pressure, top traded stocks, investment trends and fresh stock picks by AMCs during October month.

For all these snippets and much more please read through our report.