FREE

Morning India (17/August/17): 1. Fund Folio 2. Telecom 3. Infosys 4. Coal India 5. JK Cements 6. Blue Star 7. Manpasand Beverages

​MOrning India (17/August/17): 1. Fund Folio; 2. Telecom; 3. Infosys; 4. Coal India; 5. JK Cements; 6. Blue Star; 7. Manpasand Beverages

Today’s top research theme

Fund Folio: AUM touched new high of INR6.3t; quickest INR1t jump

• ​Domestic mutual fund industry equity AUM grew 6.4% MoM to INR6.3t in July to a new high, also marking the quickest INR1t jump.
  
• The increase in equity AUM was led by a rise in market indices (Nifty up 5.8% MoM). While gross inflows remained steady (INR280b, up 6% MoM), redemptions fell 16% MoM to INR153b. Consequently, net inflows increased by 56% from INR82b in June to INR127b in July - the highest since January 2008.
  
• The month saw a notable change in sector and stock allocation of funds. On an MoM basis, the weights of Financials, Metals and Oil & Gas increased, while those of Consumer, Healthcare, Autos, Telecom and Media showed signs of moderation.
  
• NBFCs' sector weight reached a new high of 7.9% (+70bp MoM and +170bp YoY). As a result, the sector has risen to the fourth position in sector allocation of mutual funds.
  
• Defensives' weight decreased from 24.2% in June to 23.4% in July, as the weights of Healthcare, Consumer, Telecom and Technology decreased, while Utilities saw an increase on MoM basis.