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MOSL: FUND FOLIO (August 2017)-Indian Mutual Fund Tracker — AUM touched new high of INR6.3t-quickest INR1t jump

FUND FOLIO (August 2017): Indian Mutual Fund Tracker — AUM touched new high of INR6.3t; quickest INR1t jump; Net inflows in July at INR127b – highest since Jan 2008

Equity AUM witnesses quickest INR1t jump
Equity AUM of the MF industry 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.
Notably, net inflows of INR127b in July were the highest since January 2008.
Total AUM of the MF industry rose 5.3% MoM in July to touch a new high of INR19.97t. The rise during the month of July was primarily led by a rise in AUM of income funds (INR672b), equity funds (INR381b) and balanced funds (INR117b).

Some interesting facts
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 – it was at the seventh position 12 months ago.
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.
Metals maintained positive momentum, with a sustained MoM increase in weight since May 2016 to reach a new high of 3.5% (+20bp MoM).