After a brief lull in January due to nervousness ahead of the Union Budget, the Indian mutual fund industry bounced back in February as net inflows grew 47 percent month-on-month to Rs 5,500 crore.
The equity assets under management (AUM) of domestic mutual funds rose for the third consecutive month, by 4.6 percent, to a new high of Rs 4.6 lakh crore, according to a report by brokerage Motilal Oswal Securities.
The brokerage attributes the growth to the strong market momentum and an increase in sales of equity schemes, up 21 percent since last month to Rs 19,400 crore.
In the last 12 months, the equity AUMs have grown 46 percent.
The report, which covers the top 20 mutual funds, also noted:
- February saw a notable shift in sector and stock allocation of funds. Weight of the technology, healthcare, consumer, non-banking financial corporations, oil and gas, public sector banks and telecom sectors increased month-on-month.
- The weights of automobile, private banks, cement, chemicals, infrastructure and utilities showed signs of moderation.
- The healthcare sector saw its weight rise in February after three months of decline.
- In terms of value, IT major Infosys Ltd. was a favourite for funds, as 9 out of 20 bought the stock, increasing the company's value by Rs 2,250 crore.
- 19 out of 20 funds sold HDFC Bank Ltd.'s stock even though it was up 7.9 percent in February.
Total AUMs of the mutual fund industry rose 3 percent on a month-on-month basis in February to a new high of Rs 17.9 lakh crore. The growth was led by a rise in the assets under management of equity, income and liquid funds.
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