Total Assets Under Management (AUM) of the Mutual Fund industry rose 41% YOY, scaling new highs to reach Rs 31.4 trillion in FY21. This was primarily led by an increase in AUM of Equity funds (INR4,092b), Income funds (INR2,392b) and other ETFs (INR1,295b), revealed a Fund Folio report from Motilal Oswal Financial Services.
Equity AUM (including ELSS and index funds) of domestic MFs reached new highs of INR10.2t (+67% YoY) in FY21, led by a rise in market indices (Nifty +71% YoY). The year saw a decline in sales of equity schemes (down 7% YoY to INR2,306b). The pace of redemptions picked up to INR2,653b (up 64% YoY), leading to the first ever net outflows in seven years at INR347b in FY21.
The year saw a notable change in the sector and stock allocation of funds. The weightage of domestic Cyclicals increased by 160bp to 58%, led by an increase in the weightage of Automobiles, NBFCs, Cement, Real Estate, Chemicals, and Infrastructure. Technology saw a massive rise in weightage in FY21 to 11.9% (+300bp YoY). The sector is now the second in terms of sectoral allocation by MFs. It was in the third position 12 months ago. Weightage of Defensives decreases 100bp to 32.5%, led by Consumer, Utilities, and Telecom. Global Cyclicals' weightage, too, fell 60bp to 9.5%.
Motilal Oswal Financial Services' Fund Folio is a handbook on the holdings of the top-20 domestic mutual funds in India. The monthly report provides details on trend in AUMs and flows, sector allocation by funds, stock-wise holding change, top schemes and NAV change and fund-wise snapshot on top holdings.