Even as the equity market traded near record highs, investors sold equity mutual funds worth Rs 4,534 crore in the month ended February 28, 2021.
However, this was moderate compared to the selling worth Rs 9,253 crore in January.
The Indian market consolidated in January, ahead of Union Budget 2021. After the Budget, the Nifty breached the coveted 15,000-mark but in the latter part of February, the market witnessed some selling and the Nifty ended the month near 14,500.
“Investors have capitalised on the market rally to book profits and rebalance the portfolio as markets continue to achieve new highs, leading to a moderation in domestic mutual fund (MF) flows,” said brokerage firm Motilal Oswal Financial Services.
Equity AUM (including ELSS and index funds) of domestic MFs reached new highs of Rs 10 lakh crore, up 7.9 percent month-on-month (MoM), Motilal Oswal pointed out.
“The MF industry’s total AUM increased 3.7 percent MoM (Rs 1.1 lakh crore) to Rs 31.6 lakh crore in Feb 2021, primarily weighed by equity funds (Rs 73,100 crore), liquid funds (Rs 28,100 crore), other ETFs (Rs 17,100 crore), and balanced funds (Rs 16,200 crore),” said Motilal Oswal.
The total equity value of the top 20 AMCs increased 7.7 percent MoM (up 24.9 percent YoY) in Feb’21 versus a rise of 6.6 percent MoM (up 29.7 percent YoY) in the Nifty, Motilal Oswal said.
Among the top 10 funds, the highest MoM increase was seen in Nippon India Mutual Fund (9.7 percent), Mirae Asset Mutual Fund (9.4 percent), ICICI Prudential Mutual Fund (8.8 percent), HDFC Mutual Fund (8.5
percent), and Kotak Mahindra Mutual Fund (8.4 percent), said the brokerage firm.
Let’s take a look at what top three domestic fund houses bought and sold in February:
SBI Mutual Fund (equity AUM: Rs 2,62,700 crore)
MoM, the fund house increased stake in SBI (0.6 pp), Reliance Industries (0.4 pp), HDFC Bank (0.3 pp), ICICI Bank (0.3 pp), and Axis Bank (0.1 pp). On the flip side, it reduced stake in TCS (-0.5 pp), Infosys (-0.3 pp) and Bharti Airtel (-0.2 pp).
HDFC Mutual Fund (equity AUM Rs 1,57,700 crore)
This fund house increased stake in SBI (0.8 pp), NTPC (0.4 pp), Coal India (0.3 pp) and Reliance Industries (0.1 pp). On the flip side, it reduced stake in ICICI Bank (-0.6 pp), Infosys (-0.4 pp), L&T (-0.2 pp) and ITC (-0.2 pp).
ICICI Prudential Mutual Fund (equity AUM Rs 1,57,600 crroe)
This fund house increased stake in SBI (0.7 pp), NTPC (0.5 pp), ICICI Bank (0.4 pp), HDFC Bank (0.2 pp), Axis Bank (0.2 pp) and Reliance Industries (0.2 pp). It reduced stake in Bharti Airtel (-0.7 pp), Infosys (-0.4 pp), ITC (-0.3 pp) and Sun Pharma (-0.2 pp).
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The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.