Trend in equity AUM for month of October 2017

Mutual funds have touched yet another milestone in the month of October, with equity asset under management (AUM) touching a new high of Rs. 71,000 crore. It increased by 7.4 per cent on a monthly basis. The rise in equity AUM was primarily led by an increase in the overall market capitalisation of listed companies. Total market capitalisation of BSE listed companies increased by 9.18 per cent in the month of October 2017. Such rise in equity AUM has helped MFs to increase the overall percentage of equity component in their AUM by 80 basis points month on month to 33.1 per cent in October.

If we look at the gross inflows for the month of October 2017, there was a decline of 13 per cent on a monthly basis to Rs. 29,900 crore, while redemption fell by 10 per cent to Rs. 13,900 crore during the same period. Hence, we saw a decline in inflows from Rs. 18,900 crore in the month of September to Rs. 16,900 crore in the month of October.

There were some remarkable changes in the month of October in terms of sector and stocks allocation to funds. The month saw the weight of PSU banks, oil & gas, telecom, consumer, infrastructure and real estate increased, while that of private financials, technology and metals showed signs of moderation.

At the end of October 2017, all sectors witnessed an increase in value on a monthly basis. The highest increase was seen in telecom, real estate and PSU banks. In terms of top sector holding of funds, private sector banks lead the way followed by auto, NBFCs and capital goods.

Most preferred stocks which saw highest net buying in the month of October were Axis Bank, Indiabulls Housing Finance and Bharti Airtel. Among least preferred stocks were IndusInd Bank, Yes Bank and Coal India. Thirteen funds saw net selling of Coal India and its value decreased to Rs. 340 crore, inspite of this, the stock was up by 5.8 per cent in October.