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MOSL: Morning India (15/September/21): 1. Fund Folio (Equity inflows see a slowdown;SIP contribution at a new high, INR100b in sight!); 2. EcoScope (CPI inflation cools off more than expected in Aug’21); 3. AGI

MOrning India (15/September/21): 1. Fund Folio (Equity inflows see a slowdown; SIP contribution at a new high, INR100b in sight!); 2. EcoScope (CPI inflation cools off more than expected in Aug’21); 3. AGIC: (Day 2: ‘MANAGEMENT SAYS’ )

 

Today’s top research theme

FUND FOLIO: Equity inflows see a slowdown; SIP contribution at a new high, INR100b in sight!

• Equity AUM (including ELSS and index funds) of domestic MFs rose by 5.4% MoM to INR12.8t in Aug'21, led by a rise in market indices (Nifty up 8.7% MoM). The month saw a decline in sales of equity schemes (down 16.8% MoM to INR367b). The pace of redemptions picked up to INR267b (up 20.1% MoM). Consequently, net inflows slowed to INR100b in Aug'21 from INR219b in Jul'21.
• Total AUM for the MF industry increased by 3.6% MoM (INR1.3t) to INR36.6t in Aug'21, primarily led by a MoM increase in the AUM of equity funds (INR661b), other ETF funds (INR302b), and balanced funds (INR261b).
• The month saw notable changes in the sector and stock allocation of funds. On a MoM basis, the weightage of NBFCs, Technology, Private Banks, Telecom, Consumer, Oil and Gas, and Insurance increased, while that of Metals, Automobiles, Healthcare, PSU Banks, Consumer Durables, Utilities, and Cement moderated.
• NBFCs' weightage increased to an 18-month high of 7.9% (+50bp MoM and +110bp YoY). The sector now ranks third in the allocation of MFs - it was in the sixth and fourth position a year and a month back.
• Automobiles' weightage hit a 17-month low of 5.9% (-30bp MoM; -50bp YoY).

Piping hot news

ZEEL aims to enhance profitability under ZEE 4.0: Punit Goenka

Leading media firm Zee Entertainment Enterprise (ZEEL) is embarking on a new path under 'ZEE 4.0', through which it aims to enhance profitability and continue to grow ahead of the industry, its Managing Director Punit Goenka said. The company has a new organisation design and a clear-cut growth strategy, Goenka said at the 39th annual general meeting (AGM) of the company. The remarks come against the backdrop of the company's two largest shareholders -- Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) and OFI Global China Fund LLC -- seeking Goenka's removal from the board.