In the last month also, investors continue to pour money into mutual funds. However, its speed has slowed down a bit. On a month-on-month basis in June, the total asset management of mutual funds has seen a growth of 1.9 per cent to Rs 33.7 trillion.
Equity, arbitrage and balance funds have seen growth during this period. With the stock market touching new highs, there has been investment in equity funds but its pace has slowed down a bit. The reason, say veterans, was profit-booking and portfolio rebalancing.
On a month-on-month basis, the weightage of technology, capital goods, healthcare and automobile and insurance increased in July. On the other hand, the weightage of private banks, oil and gas, public sector banks and telecom has seen a decline.
Looking at the largecaps, in July, mutual funds increased their stake in Indus Towers, Havells India, SBI Cards & Payment Services, JSW Steel and Muthoot Finance while selling in Hindustan Zinc, Adani Enterprises, NMDC, Dabur India and Titan Company .
Looking at the mid-cap space, mutual funds have increased stake in Sona BLW Precision Forgings, Shriram Transport Finance, Indian Bank, TVS Motor Company and Zee Entertainment Enterprises during this period.
In smallcaps, mutual funds have increased their stake in the recently listed Dodla Dairy and Krishna Institute of Medical Sciences. Apart from this, mutual funds have also bought in Orchid Pharma, Shyam Metalics & Energy and Zensar Technologies.
In June, the number of SIPs in various schemes of mutual funds has increased from 3.88 crores in May to 4.02 crores. The SIP contribution in the month of June has increased to Rs 9,155 crore from Rs 8818 crore in May. Market players say that with the stock market touching new highs and interest rates falling, investment in mutual funds will continue to increase further.
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