Mumbai: In the words of Motilal Oswal Financial Services, Indian mutual-fund markets may have witnessed gross inflows of a 6 month high. Sales of equity schemes soared by 17.5 percent on a month-on-month basis to Rs 179 billion.
In fact, 60 percent of top-25 mutual fund schemes outperformed the markets. In its August report, the MOFS report said 80% of top-25 mutual fund schemes outperformed the markets.
Motilal Oswal Financial Services' Fund Folio is a handbook on the holdings of the top-20 domestic mutual funds in India.
What's interesting to note is a blip in redemptions - it cooled off marginally and stood at Rs 185 billion (down by 2.7 percent MoM) leading to a slowdown in net outflows to Rs 6 billion in September versus outflows of Rs 38 billion recorded in August.
This essentially is a great news for the mutual fund industry. Although the Average assets under management (AuM) decreased 2.3 percent to Rs 26.9 trillion in September. This was primarily led by Liquid funds (Rs 697 billion), Balanced funds (Rs 78 billion) and Equity funds (Rs 52 billion).
In August, the MF industry AUM rose by 1.4 percent.
AuMs have risen 17.9 percent over the last three months - Equity AUM (incl. ELSS and Index funds) of domestic MFs declined a marginal 0.6 percent MoM to Rs 8.1 trillion in September, led by the fall in market indices (Nifty -1.2 percent MoM).
In September, compared to other categories, Multi-cap schemes' proportion to overall outflows were higher at Rs 11.4 billion. Large-cap and Mid-cap schemes saw outflows of Rs 5.8 billion and Rs 0.7 billion, respectively, while Small-cap funds received inflows of Rs 1.3 billion.
For individuals keen on knowing which stocks were trending in September, the top theme was technology. In fact, 5 of the 10 stocks that saw maximum increase in value were in Technology.
Stocks of Reliance Industries (RIL), Infosys, TCS, HCL Tech, Dr. Reddy's Labs, Tech Mahindra, Wipro, Cipla, Ipca Labs and Maruti Suzuki saw maximum increase in value on a MoM basis.
Banking and Financial stocks were hurt in September with maximum decline in MoM value. These stocks included ICICI Bank, Axis Bank, SBI, Bharti Airtel, Kotak Mahindra Bank, HDFC Bank, NTPC, ITC, L&T and HUL.