The landscape of Indian equity mutual fund schemes transformed dramatically, with Net AUM reaching a historic ₹23.12 Lakh Crs, driven by a wave of investments in Equity NFOs and the consistent allure of SIP contribution.
Uncovering Trends in Equity Scheme Portfolios for February, 2024
Focus on Oil & Energy: Many equity mutual fund schemes showed a strong preference for new investments in leading companies like BPCL, HPCL, Swan Energy, Oil India, ONGC, Power Grid Corporation, Coal India, Whirlpool of India and LIC. The IPOs of Apeejay Surrendra Park Hotels and Juniper Hotels also emerged as popular investment choices among these funds.
Exits from Certain Stocks: Several equity schemes made strategic investment exits from Hindalco Industries, Crompton Greaves Consumer Electric, ITC, Ashok Leyland, One97 Communications, Bajaj Finance, HDFC Bank, IREDA, LTIMindtree, Axis Bank, Mphasis, M&M, IndusInd Bank and Kotak Mahindra Bank.
Investment Sector Preferences: Equity Mutual Fund Schemes are favoring sectors such as Hospitality, Textile, Iron & Steel, Insurance, Logistics, and Infrastructure.
Sector Divestments: Some mutual fund schemes have reduced their stakes in sectors like Information Technology, FMCG, Chemicals, Construction Materials, Finance, and Capital Goods, reflecting tactical portfolio adjustments.
Breaking Down Equity Inflows of February, 2024
Strong NFOs Collection: SBI MF's Energy Opportunities Fund collected ₹6,700 Crs from 5 lakh applications, standing out among new launches. Bajaj Finserv Large & Mid Cap Fund and Motilal Oswal Large Cap Fund also saw significant inflows.
Leaders in Active Fund Categories: Parag Parikh Flexi Cap Fund and Quant Small Cap Fund stood out as the leading equity inflow schemes in 2024.
Contra Funds Rising: SBI Contra Fund attracts significant inflows for the second consecutive month in February, underlining its rising popularity among investors.
Trends in Equity Mutual Fund Scheme Investments
Strong Inflows: February witnessed a 23% surge in open-ended equity fund inflows, totaling ₹26,866 Crs.
Sectoral/Thematic Leadership: Till February in CY24, Sectoral/Thematic Funds topped with collections of ₹16,068 Crs.
AMC-wise Inflow Distribution: In February, SBI Mutual Fund captured over 35% of equity inflows, with top AMCs including Quant, HDFC, Nippon Life, PPFAS, and ICICI securing over 80% of the month's inflows.
For a comprehensive understanding and more insights, please go through our detailed report.