MOSL: FUND FOLIO (November 2017)-Indian Mutual Fund Tracker — Equity AUM witnesses quickest INR1t jump-up 7.4% MoM to INR7.1t in October

​FUND FOLIO (November 2017): Indian Mutual Fund Tracker — Equity AUM witnesses quickest INR1t jump; up 7.4% MoM to INR7.1t in October

Equity AUM witnesses quickest INR1t jump

• Domestic MFs maintained their positive momentum in October, with equity AUM touching a new high of INR7.1t (+7.4% MoM) in the month – also marking the quickest INR1t jump.
  
• The increase in equity AUM was led by a rise in market indices (Nifty up 5.6% MoM). While gross inflows declined 13% MoM to INR299b, redemptions fell 10% MoM to INR139b. Consequently, net inflows decreased from INR189b in September to INR160b in October.
  
• Total AUM of the MF industry rose 5% MoM in October to touch a new high of INR21.4t. This rise was primarily led by an increase in AUM of equity funds (INR488b), income funds (INR458b) and balanced funds (INR126b).
  
• Equity AUM, as a percentage of total AUM, rose 80bp MoM to 33.1% in October. Equity AUM accounts for 4.9% of India’s market capitalization.
  

Some interesting facts

• The month saw a notable change in sector and stock allocation of funds. On an MoM basis, the weight of PSU Banks, Oil & Gas, Telecom, Consumer, Infrastructure and Real Estate increased, while that of Private Financials, Technology and Metals showed signs of moderation.
  
• Global Cyclicals’ weight rose 20bp MoM to 10.6%, as the weight of Oil & Gas increased from 6.7% in September to 7% in October, while that of Metals moderated for the second consecutive month in October. Defensives’ weight remained stable at 23.9%.
  
• In the last 12 months, the weight of Technology has decreased sharply by 120bp to 6.3% in October. As a result, Technology has fallen to the ninth position in sector allocation of mutual funds – it was at the fifth position 12 months ago.