Morning India (16/April/20): 1. Fund Folio (Equity AUM plunges after six straight years of rise); 2. Strategy (Accounting impact of COVID-19 situation); 3. Wipro; 4. Grasim; 5. EcoScope; 6. Expert Speak; 7. Ret
Morning India (16/April/20):
Today’s top research theme
Fund Folio (April 2020): Equity AUM plunges after six straight years of rise; net inflows consolidate in FY20
** Domestic MFs witnessed steady flows during the year despite nervousness in the market. Contribution of systematic investment plans (SIPs) hit a new high of INR86.4b in Mar'20. Total amount garnered through SIPs stood at INR1,001b in FY20 against INR927b in FY19.
** Equity AUM of domestic MFs declined to INR6.6t (-25.7% YoY) in FY20 - the lowest level since Oct'17 - led by a decline in market indices (Nifty -26% YoY) and increase in redemptions (up 26% YoY to INR2,467b). However, an increase in sale of equity schemes (+10% YoY to INR3,347b) restricted the decline in net inflows to INR880b in FY20 from INR1,080b in FY19.
** The mutual fund industry's average AUM increased 10.7% YoY (INR2.6t) to INR27.1t in FY20, primarily led by inflows in equities, ETFs and income categories.
** Defensives' weight increased by 600bp to 33.5% while weight of domestic cyclicals' decreased by 520bp to 56.4%.
** Consumer weight increased for the third successive month to reach a new high of 9.8% (+150bp MoM and +200bp YoY). The sector is now at the second position in sector allocation of mutual funds - it was at the fifth position 12 months ago.
Piping hot news
Government to soon clear Rs 10,000 crore 'Fund of Funds' for MSMEs with high credit rating: Nitin Gadkari
A Rs 10,000 crore "Fund of Funds" will soon be approved by the government to buy up to 15 per cent equity in MSMEs with high credit rating that want to list on stock exchanges and raise money from the capital markets, Union Minister Nitin Gadkari said on Wednesday
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.