According to Fund Folio report from Motilal Oswal Financial Services, In Sep'21, total mutual fund industry assets under management increased marginally (0.4% MoM) to Rs 36.7 trillion, led by a MoM increase in the Assets Under Management of equity funds (Rs 476 billion), other ETF funds (Rs 186 billion), and balanced funds (Rs 143 billion). Notably, liquid funds declined Rs 555 billion MoM. FII inflows were robust at $1.1 billion. DIIs saw inflows for the seventh consecutive month at USD0.8b.
The month saw notable changes in the sector and stock allocation of funds. On a MoM basis, the weights of Utilities, Oil & Gas, Automobiles, Real Estate, PSU Banks, Consumer Durables, Retail, and Media increased, while those of Telecom, Metals, Private Banks, Healthcare, Technology, Cement, Insurance, and Chemicals moderated.
Investors continued to park money in mutual funds, with inflows and contributions in systematic investment plans (SIPs) crossing INR100b to reach new highs of INR103.5b in Sep'21 (up 4.3% MoM and 32.9% YoY). Equity AUM (including ELSS and index funds) of domestic MFs increased 3.7% MoM to INR13.3t in Sep'21. This was on account of a rise in market indices (Nifty up 2.8% MoM) and an increase in equity scheme sales (up 11.5% MoM to INR409b). At the same time, redemptions increased 17.5% MoM to INR314b. Consequently, net inflows moderated to INR96b in Sep'21 from INR100b in Aug'21.