MOSL: FUND FOLIO (December 2017)-Indian Mutual Fund Tracker — MF net inflows at a record high of INR4.1t; Equity AUM up 56%

​FUND FOLIO (December 2017): Indian Mutual Fund Tracker — MF net inflows at a record high of INR4.1t; Equity AUM up 56% in CY17YTD

Equity AUM rose for the 11th successive month in CY17

• Bucking the weak market trend in November, equity AUM rose for the 11th consecutive month in CY17 to scale a new high of INR7.3t (+3.6% MoM and +56% CY17YTD).
  
• The increase in equity AUM can primarily be ascribed to a rise in equity scheme sales to INR393b (+32% MoM). Redemptions rose 37% MoM to INR190b (as market indices were down; Nifty -1.1% MoM), leading to a rise in net inflows (INR203b, +27% MoM).
  
• Total net inflows for the MF industry in CY17YTD stand at INR4.1t, one third of which are contributed by equity funds. All categories of funds – except GILT, gold ETFs and FOF – witnessed positive inflows.
  
• Total AUM of the MF industry rose 6.4% MoM in November to touch a new high of INR22.8t, primarily led by an increase in the AUM of liquid funds (INR846b), equity funds (INR252b) and income funds (INR120b).
  

Some interesting facts

• The month saw a notable change in sector and stock allocation of funds. On an MoM basis, the weight of Capital Goods, Telecom, NBFCs, Utilities, PSU Bank, Technology and Consumer increased, while that of Private Banks, Metals, Cement, Healthcare, Auto and Oil showed signs of moderation.
  
• Defensives’ weight rose 50bp MoM to 24.4%, as the weight of Telecom/Utilities/Technology/Consumer increased 40/20/10/10bp, while that of Healthcare moderated in November. Global and Domestic Cyclicals’ weight declined 40bp and 20bp MoM to 10.2% and 65.4%, respectively.
  
• Over the last 12 months, the weight of Healthcare decreased sharply by 220bp to 6.3% in November. As a result, Healthcare has fallen to the 9th position in sector allocation of mutual funds – it was at the 4th position 12 months ago.