The equity mutual inflows touched a fresh seven-month high in June despite heightened volatility in the stock market.
The equity mutual inflows touched a fresh seven-month high in June despite heightened volatility in the stock market. Notably, the Indian mutual fund investors pumped in a whopping Rs 7,675.36 crore into equity schemes in June, up 54.5% from the previous month, the Association of Mutual Funds in India (Amfi) said. The amount was still 20% lower than June 2018’s inflows of Rs 9,660 crore. The flows came in higher even as June was a month of wild swings for the market. “After the Nifty surpassed the 12,000 mark to hit a record high at the beginning of the month, the election outcome-driven euphoria fizzled out with investors waking up to the ground realities – slowdown in the economy, concerns around liquidity woes for NBFCs, and a moderation in consumption on the domestic front, among others,” brokerage firm Motilal Oswal noted adding that throughout the month thereafter, the benchmark consolidated in the 11,500-12,000 range, in keeping with the volatile trend of the last two months.
Taking stock of the higher inflows into equity mutual funds in the month, Motilal Oswal said that investors continued to park money in mutual funds, with inflows remaining steady and the contribution of systematic investment plans (SIPs) remaining stable at Rs 8,122.13 crore in Jun’19, even as the markets continued to seesaw. Amid incresed volatility, the month saw a notable change in sector and stock allocation of funds, said Motilal Oswal.
Notably, the weight of Private Banks, Consumer, Utilities, Technology, NBFCs, Retail, Metals and PSU Banks increased, while that of Oil & Gas, Chemicals, Autos and Cement moderated, according to an analysis by the research firm. Interestingly, private Banks – the top sector holding of MFs – saw its weightage AUM touches new high – surging by a whopping 2.6x in past five years. The space registered an increase for the ninth successive month to a new high of 19.9% (+20bp MoM, +370bp YoY). For the top 20 funds, the NAV came down by 0.4% MoM but was up 20.6% on-year. Among the Nifty stocks, mutual funds were net buyers in 62% of the stocks, revlealed the analysis.