Market Watch

Shopping List: What your fund manager bought in April

The MF report card
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The MF report card
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Post an impressive finish to FY19 (the Nifty rallied 7.7% in Mar’19) and after a gap of eight months, the market charted a new life-time high of 11,856 in April. However, it ended flattish with marginal gains of 1% in the month. Net inflows moderated in April as nervousness gripped markets owing to credit events, rating downgrades, global trade war tensions and uncertainty over outcome of general elections. The mutual fund industry’s total AUM increased 4.2% MoM (INR1.0t) to INR24.8t in Apr’19, primarily led by inflows in income and debt oriented schemes.


Here are a few interesting facts as compiled by Motilal Oswal

Let's recap
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Let's recap
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Equity inflows (including ELSS and Arbitrage) saw slowdown with net inflows of INR58b in Apr’19 v/s INR78b recorded in Mar’19. However, April flows cannot be compared to the previous month, as reported April data is in the new format prescribed by the SEBI with focus on regrouped and reclassified schemes. Equity mutual funds attracted steady flows, largely due to investor participation through systematic investment plans (SIPs). Total amount garnered through SIPs stood at INR82.4b in Apr’19 (+2.3% MoM and +23.1% YoY)

Who are the sectoral heavyweights
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Who are the sectoral heavyweights
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The month saw notable change in sector and stock allocation of funds. On MoM basis, weight of Technology, Cement, Healthcare, Private Banks and
Capital Goods increased, while that of PSU Banks, Utilities, NBFCs, Oil & Gas, Autos, Chemicals and Infrastructure moderated.

Private Banks scale new highs
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Private Banks scale new highs
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The top sector holding of MFs - saw its weightage increase for seven successive months to climb to a new high of 19.3% (+10bp MoM, +390bp YoY).

Auto sector low on fuel?
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Auto sector low on fuel?
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Auto’s weightage reached a new low of 6.3% (-10bp MoM/-340bp YoY). As a result, the sector is down to the seventh position in terms of mutual fund allocation – it was at the second position 12 months ago.

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