Mutual funds have changed strategy. In May, they have increased their confidence in capital goods, retail and NBFCs. Whereas private banks, cement, consumer durables and automobiles have been distanced.
Mutual Fund Strategy: During May 2022, the Nifty fell 3 percent on a monthly basis and closed at 16,585. This was the third major decline on a monthly basis since March 2020. Market was under pressure due to rate hike cycle, inflation, war between Russia and Ukraine, rise in commodity prices, disturbance in supply chain. FII outflow was seen for the 8th consecutive month in May. Foreign investors pulled out $4900 million from the market. Although DII continued to make up for it. However, in this volatile market, mutual fund investors have also continued to invest money in the market. Investment through Systematic Investment Plans (SIPs) in May stood at 12290 crores, which is 3.6 per cent higher on a monthly basis and 39.3 per cent higher on an annual basis. The brokerage house Motilal Oswal has released a report in this regard.
The total AUM of the industry is 37.2 lakh crores
Equity AUM for domestic mutual funds declined 2.2 per cent on a monthly basis to Rs 14.2 lakh crore in May. During this period, the AUM declined due to non-launch of NFOs. Due to this, the sales of equity schemes also declined and it declined by 3.4 percent to 38400 crores on a monthly basis. Redemption declined 16.9 per cent on a monthly basis to a 23-month low. The total AUM of the mutual fund industry in May declined by 2.1 per cent to Rs 37.2 lakh crore on a monthly basis. The AUM of Income/Equities/Liquid Fund on Monthly Basis decreased by 33100 crores, 31900 crores and 11600 crores. While Arbitrage, Gilt Fund’s AUM increased.
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Mutual fund changed the strategy
In May, mutual funds have changed their strategy. In May, he has increased confidence in capital goods, retail and NBFCs. While some distance has been made from private banks, cement, consumer durables and automobiles. On a monthly basis, weightage has been increased in private banks, automobiles, insurance, technology, consumer and capital goods. While the weightage has been reduced in Healthcare, Metals, Cement, Consumer Durables, Oil & Gas, PSU Banks, Telecom, Infrastructure and Chemicals.
The weightage of the private bank has increased for the second consecutive month and is at a 12-month high of 17.9 per cent (+50bp MoM, flat YoY). The weightage of automobiles is at a 39-month high of 7.1 per cent (+50bp MoM and +70bp YoY).
Healthcare has a weightage of 6.6 per cent (-40bp MoM, -100bp YoY) at 27-month low. Whereas metal has a weightage of 2.2 per cent (-30bp MoM; -80bp YoY) at 16-month low.
Increase in value in these shares on a monthly basis
Out of the stocks in which mutual funds have increased their value the most on a monthly basis, 4 are in the BFSI category. These include HDFC Bank (+4410 crore), ICICI Bank (+3530 crore), HDFC (+2690 crore) and SBI Life Insurance (+820 crore). Apart from this, M&M, Infosys, Maruti Suzuki, ITC, TVS Motor and HUL are included in the top buying list.
The value of these shares decreased on a monthly basis
On the other hand, the stocks which have lost the most on a monthly basis include Reliance Inds, Divis Labs, Axis Bank, SBI, JSPL, Bajaj Finance, Tata Steel, Sun Pharma, Bharti Airtel and Voltas in the top 10.
www.financialexpress.com
