Equity mutual funds attracted investors as usual in July 2021, when Indian stock markets reached new highs. In July, net inflows into equities mutual funds reached a new high of 225.8 billion dollars, up from 59.9 billion dollars in June. The majority of the inflows came from new fund offers (NFOs) announced by MF companies as the Indian stock markets continued to rise to new highs.
SIP flows also increased, reaching a new high of $96.1 billion. Investors are increasing confidence in Indian equities markets, because to consistent inflows over the last five months, strong profits, the RBI's accommodating approach, and abundant liquidity.
Mutual funds are popular among investors because fixed deposit interest rates are lower than inflation.
The overall market remained strong, with gains ranging from 3-6 percent. In August 2021, we are witnessing the reversal of what occurred in July 2021. While the broader market indices are losing ground, large-cap indices are gaining ground.
Large-cap firms are well-established firms with a sizable market share. Market capitalizations of Rs 20,000 crore or greater are classified as large-cap companies. These firms are market leaders and have a long history of success. They are resilient in the face of adversity, such as a recession or other calamity. Furthermore, they will have a long history of operation and an excellent reputation.
The following are the large-cap equities in which MFs boosted their holdings in July 2021:
|Stocks||Sector||Net qty bought||Approx. buy value (in Rs crore)|
|HDFC Bank Ltd||Financials||24719783||3614.42|
|ICICI Bank Ltd||Financials||18901107||1241.24|
|Bajaj Finance Ltd||Financials||1921558||1176.38|
|Axis Bank Ltd||Financials||14425999||1051.08|
|Housing Development Finance Corporation Ltd||Financials||3853021||947.12|
Some of the stocks in this category are also known as blue-chip stocks since the firms that hold them (blue-chip companies) are usually leaders in their respective industries or one of the top three figures in it. They are well-known in the marketplace, have a high level of productivity, and are financially sound. As a result, such equities are among the most sought after in the market.