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MOSL: FUND FOLIO (May 2017)-Indian Mutual Fund Tracker — Quickest INR2t jump in AUM-Inflows to equity schemes (INR88b)

​FUND FOLIO (May 2017): Indian Mutual Fund Tracker — Quickest INR2t jump in AUM; Inflows to equity schemes (INR88b) second-highest since June 2015

Good start to FY18; AUM witnesses the quickest INR2t jump

• Domestic mutual funds (MF) started the financial year on a positive note, with total AUM touching a new high of INR19.3t (+9.8% MoM) in April, also marking the quickest INR2t jump.
  
• The MoM rise was primarily due to rise in AUM of liquid, income and equity funds. All categories saw a rise, except FOF, Gold ETF and Gilt funds.
  
• Equity AUM rose for the fifth straight month in April to touch a new high of INR5t (+4.7% MoM). The rise was led by market indices (Nifty up 1.4% MoM), while equity scheme sales declined 26% MoM to INR192b. Redemptions fell 50% MoM to INR103b. Consequently, net inflows increased from INR53b in March to INR88b in April.
  
• Domestic MFs received the highest total net inflows (INR1,507b) since April 2016; equity schemes witnessed the second-highest inflows (INR88b) since June 2015.
  

Some interesting facts

• The month saw a notable change in sector and stock allocation of funds. On an MoM basis, the weights of NBFCs, Capital Goods, Cement, Private Banks, Autos, Metals, Infra and Retail increased, while those of Technology, Healthcare, Consumer and Utilities showed signs of moderation.
  
• After declining for two consecutive months, the weights of Cement and Private Banks increased in April. Oil & Gas maintained its positive momentum, with a sustained MoM increase in its weight since October 2016.
  
• In the last 12 months, weights of the Technology and Healthcare sectors decreased by 310bp and 160bp, respectively to 6.6% in April. As a result, Technology has fallen to the seventh position in sector allocation of mutual funds – it was at the third position 12 months ago.