Mutual Fund Update: Tech and consumer sector increase their share in equity AUM

Domestic equity mutual fund AUM declined by 0.3 per cent on a MoM basis in May 2018 to Rs. 7.98 lakh crore. The fall in the equity AUM is primarily led by the flattish performance of the equity market. BSE Sensex was down by 0.5 per cent for the month of May 2018.  Moreover, net inflows to equity scheme declined from Rs. 12,400 crore in the month of April 2018 to Rs. 12,100 crore in the month of May 2018.

Net inflows received by MF industry year till date (January to May 2018) is Rs. 1,50,000 crore, out of which 41 per cent is contributed by the equity funds. Such inflows helped equity AUM to reach an all-time high of 5.4 per cent of India’s market capitalisation. It is up by 80 bps on a YoY basis, while on MoM basis it is up by 20 basis points.

In terms of sector allocation, Technology, Financials and Consumer saw their overall weightage increase among equity mutual funds. Technology’s weightage spiked for the fifth straight month after bottoming out in December 2017. It is now at 8 per cent of the total AUM.

The sectors that saw their weightage decline in the month of May are Capital Goods, Healthcare, Autos, Metals, Infrastructure, Cement, Utilities, Telecom, Real Estate and Chemicals. Capital Goods’ weightage is down by 40 basis points on MoM basis to 7.7 per cent is now at the fifth position in MFs’ equity allocation.