Mutual Fund investment: The latest data from the Association of Mutual Funds in India (AMFI) released last week showed that the net inflows into equity mutual fund schemes grew by 17 per cent month-on-month and was an all-time high of Rs 40,608.19 crore in June, from Rs 34,697 crore in May 2024. Higher inflows into equity mutual funds driven by a surge in benchmark equity indices. Sensex and Nifty rose around 7% in June as Lok Sabha election uncertainty settled. The Q1 net inflows into equity mutual funds stood at Rs 94,222.28 crore.
The net assets under management (AUM) of the mutual fund industry, as reported on June 30, 2024, surpassed Rs 60 lakh crore, reaching a historic high of Rs 61.16 lakh crore. This significant milestone highlights the industry’s continued growth and investor participation. Notably, the contribution from systematic investment plans (SIP) peaked at 21,262 crore in June, showcasing a notable increase from Rs 20,904 crore in May and Rs 20,371.47 crore in April.
Mutual funds regularly adjust their portfolios by adding or removing specific stocks to enhance returns for investors. According to the Mutual Fund Insights report published by Nuvama Alternative & Quantitative Research, mutual funds invested a total of Rs 282 billion in stocks on the Indian secondary market in June.
According to the report, mutual fund houses in the large-cap segment made significant investments in stocks of companies such as Reliance Industries, HDFC Bank, Infosys, Life Insurance Corporation, and Hindustan Unilever.
On the contrary, notable reductions were observed in holdings of Hindustan Aeronautics, Avenue Supermarts, Bharat Electronics, ABB, and LTI Mindtree within the same segment.
The assets under management (AUM) of equity schemes, which encompass both active and passive funds, exceeded Rs 30 lakh crore for the inaugural time in June, as cited in the Motilal Oswal Financial Services report. The report highlighted that the AUM surged by 8.7 per cent on a month-on-month basis, driven by the upsurge in market indices and a substantial increase in fresh inflows.
The prominent benchmark index Nifty 50 experienced a notable 6.6 per cent increase in June. At the conclusion of June, the equity AUM accounted for nearly half of the entire AUM of the industry, standing at Rs 61.2 lakh crore.
In the midcap segment, the top key additions over the last three consecutive months included KEI Industries, AIA Engineering, Jubilant Foodworks, M&M Finance, and Lloyds Metals. The notable reductions during the same period were observed in GE T&D India, Coforge, SKF India, Carborundum Universal, and CRISIL.
Within the smallcap space, significant buying activities were noted in Aster DM Health, Sharda Motors, and Craftsman Auto. On the other hand, the highest selling was seen in Crompton Greaves, Bharat Dynamics, and Heritage Foods.
As per an analysis by YES Securities, these are the top 10 stocks where MFs reportedly bought and sold their holdings:
Top 10 stocks that MF houses bought
> HDFC Bank
> Indus Tower
> BPCL
> Mphasis
> HindPetro
> Infosys
> Reliance Industries
> HDFC Life
> Motilal OFS
Top 10 stocks that MG houses sold
> Hindustan Aeronautics Limited
> Bharat Electronics
> Bharti Airtel
> State Bank of India
> Power Finance Corporation Ltd
> ICICI Bank
> REC Limited
> Sun Pharmaceutical Industries
> ABB
> Bharat Dynamics Ltd
“Indian Equity Benchmark performance has surpassed global indices over the past year. While mid-cap and small-cap stocks have struggled worldwide compared to large-cap stocks, Indian markets have stood out as an exception. This has led to increased valuation multiples across various sectors of Indian equities. In contrast, Brazil and China have faced significant difficulties, affecting multiple sectors,” said Hitesh Jain, lead analyst at YES Securities.