Total asset under management (AUM) of the Mutual Fund industry rose 41% year-on-year, scaling new highs to reach ₹31.4 trillion in FY21. This was primarily led by an increase in AUM of Equity funds, Income funds and other ETFs, said the Fund Folio report from Motilal Oswal Financial Services.
Motilal Oswal Financial Services’ Fund Folio is a handbook on the holdings of the top-20 domestic mutual funds in India. The monthly report provides details on trend in AUMs and flows, sector allocation by funds, stock-wise holding change, top schemes and NAV change and fund-wise snapshot on top holdings.
Total equity value of the top 20 asset management companies (AMCs) increased 1.3% on a monthly basis in March 2021 as a rise of 1.1% MoM in the Nifty. Among the top 10 funds, the highest MoM increase was seen in Kotak Mahindra Mutual Fund, Mirae Asset Mutual Fund, DSP Mutual Fund, Axis Mutual Fund, and ICICI Prudential Mutual Fund (2.1%).
Mutual funds were net buyers in 50% of Nifty stocks. The highest month-on-month (MoM) net buying in March 21 was seen in BPCL, SBI Life Insurance, Tata Steel, Bajaj Auto, and UPL.
As for allocation of funds – Capital Goods, Chemicals, Healthcare, Cement, and PSU Banks are the top sectors where ownership of mutual funds vis-à-vis BSE-200 is at least 1% higher. Top sectors where ownership of mutual funds vis-à-vis BSE-200 is at least 1% lower are Oil and Gas, NBFCs, Consumer, Technology, and Private Banks.
As per the report, 44% of top 25 schemes outperformed the market. Among the top 25 schemes by AUM, Nippon India Small Cap Fund, UTI-Flexi Cap Fund, Axis Midcap Fund, Kotak Emerging Equity Fund, and DSP Midcap Fund reported the highest increase.
In March 2021, three of the top five stocks that saw the maximum increase in value were from Technology. Infosys, TCS, BPCL, Tata Steel, HCL Technologies, HUL, ITC, SBI Life Insurance, Tata Communications, and Bank of Baroda increased the most in terms of value. Stocks that saw a maximum decline in value MoM were Reliance Industries, SBI, ICICI Bank, HDFC Bank, Axis Bank, Bharti Airtel, Coal India, HDFC, Vedanta, and Info Edge, the report added.
The year FY21 saw a notable change in the sector and stock allocation of funds. The weightage of domestic cyclicals increased by 160 basis points (bps) to 58%, led by an increase in the weightage of Automobiles, NBFCs, Cement, Real Estate, Chemicals, and Infrastructure, the report added. Technology saw a massive rise in weightage in FY21 to 11.9%. The sector is now the second in terms of sectoral allocation by MFs.