According to Fund Folio (September 2021) report from Motilal Oswal Financial Services, the MF industry's total AUM climbed by 3.6% MoM (Rs 1.3 trillion) to Rs 36.6 trillion in August 21, led by a MoM increase in the AUM of equity funds (Rs 661 billion), other ETF funds (Rs 302 billion), and balanced funds (Rs 302 billion) (Rs 261 billion). Domestic MFs' equity AUM (including ELSS and index funds) climbed by 5.4% MoM to Rs 12.8 trillion in August, owing to a surge in market indices (Nifty up 8.7% MoM). Notably, sales of equity schemes fell during the month (down 16.8% MoM to Rs 367 billion). The pace of redemptions increased to Rs 267 billion (up 20.1% MoM).
As a result, net inflows decreased to Rs 100 billion in August 21 from Rs 219 billion in July 21.Motilal Oswal Financial Services' Fund Folio is a handbook on the holdings of the top-20 domestic mutual funds in India.
The monthly report provides details on trend in AUMs and flows, sector allocation by funds, stock-wise holding change, top schemes and NAV change and fund-wise snapshot on top holdings.
Top 20 funds: Equity value up 6.3% MoM and 53.2% YoY
Total equity value for the top 20 AMCs increased by 6.3% MoM (+53.2% YoY) in Aug’21 v/s an increase of 8.7% MoM (+50.4% YoY) in the Nifty. Among the top 10 funds, the highest MoM increase was seen in Axis Mutual Fund (11%), SBI Mutual Fund (10.1%), UTI Mutual Fund (8.7%), Mirae Asset Mutual Fund (6.7%), and ICICI Prudential Mutual Fund (6.4%).
Sector-wise weightage: MoM increase in Private Financials, Technology, and TelecomMFs showed increased interest in NBFCs, Technology, Private Banks, Telecom, Consumer, Oil & Gas, and Insurance in August 21, resulting in a MoM increase in their weightage. Metals, Automobiles, Healthcare, PSU Banks, Consumer Durables, Utilities, and Cement all had their weightage drop from the previous month. In August 21, the top sector holding for MFs was private banks (17.1%), followed by technology (12.1%), NBFCs (7.9%), and healthcare (7.9%). The most significant increases in value were seen in telecom, NBFCs, technology, insurance, and consumer. The weightage of automobiles fell to a 17-month low of 5.9%. (-30bp MoM; -50bp YoY).
Sectoral allocation of funds: Chemicals, Healthcare, and Autos are over-owned
Top sectors where ownership of MFs vis-à-vis the BSE 200 is at least 1% higher: Chemicals (15 funds over-owned), Healthcare (14 funds overowned), Automobiles (13 funds over-owned), Capital Goods (13 funds over-owned), and Consumer Durables (13 funds over-owned).
Top sectors where ownership of MFs vis-à-vis the BSE 200 is at least 1% lower: Oil and Gas (20 funds under-owned), Consumer (19 funds underowned), NBFC (16 funds under-owned), Technology (15 funds under-owned), and Utilities (12 funds under-owned).
Top schemes and NAV change: 88% of the top 25 schemes underperform the market
Among the top 25 schemes by AUM, the following reported the highest increase: Axis Focused 25 Fund (+9.6% MoM change in NAV), Axis Long Term Equity Fund (+9.4% MoM), Axis Bluechip Fund (+9.1% MoM), Aditya Birla SL Frontline Equity Fund (+7.1% MoM), and SBI Focused Equity Fund (+7.1% MoM).
Value surprise: Maximum MoM change in Financials
In Aug’21, six of the top 10 stocks that saw the maximum increase in value were from Financials. HDFC Bank, TCS, ICICI Bank, Bharti Airtel, HDFC, Reliance Industries, Bajaj Finance, Axis Bank, HCL Technologies, and SBI Life Insurance increased the most in terms of value MoM.
Stocks that exhibited a maximum decline in value MoM
SAIL (-Rs 9 billion), Aurobindo Pharma (-Rs 8.3 billion), NMDC (-Rs 7.3 billion), JSPL (-Rs 6.8 billion), and Balkrishna Industries (-Rs 6.2 billion).
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