MOSL: Morning India (15/September/17)- 1. Fund Folio: AUM scales new highs 2. EcoScope 3. Real Estate Day

​MOrning India (15/September/17): 1. Fund Folio: AUM scales new highs; 2. EcoScope; 3. Real Estate Day

Today’s top research theme

Fund Folio: AUM scales new highs; global cyclicals see buying

• Domestic mutual fund industry equity AUM rose for the ninth consecutive month in August to scale a new high of INR6.4t (+2.3% MoM and +37% CY17 YTD).
  
• The increase in equity AUM was led by a rise in equity scheme sales to INR325b (+16% MoM) and a fall in redemptions by 21% MoM to INR121b (as market indices were down; Nifty -1.6% MoM), leading to a rise in net inflows (INR204b, +60% MoM). Notably, net inflows of INR204b in August were the highest-ever in a month.
  
• In August, 982k new SIP accounts were added, taking the total SIP accounts to 15.9m. The total amount collected through SIP during the month of August was INR52.1b, up ~50% YoY.
  
• The month saw a notable change in sector and stock allocation of funds. Weight of Global Cyclicals is now in double-digits (10.5%, +90bp MoM). Defensives' weight too increased by 30bp to 23.7%, led by a rise in the weight of Utilities (+40bp to 3.4%). Domestic cyclicals' weight fell by 120bp to 65.8% due to a decline in the weights of Banks (PVT and PSU), Autos, Capital Goods and Infrastructure, partly offset by a small increase in the weight of NBFCs.