Indian equity mutual funds represent a diverse and dynamic segment of the financial market, offering a range of investment opportunities across various sectors and company sizes. Our analysis reveals a dynamic interplay of strategic investments and market shifts in 2023, offering key insights into the evolving landscape of financial opportunities.
Emerging Investment Patterns in Equity Mutual Fund Scheme Categories
Unprecedented Growth: Net AUM of Equity Mutual Funds hit ₹21.79 Lakh Crore.
Consistent Inflows: 34th straight month of net inflows, up 9.40% to ₹16,997 Crore in December.
Top Choices: Small Cap, Sectoral/Thematic and Mid Cap Funds dominated 2023, attracting 66% of total inflows; Large-cap and Focused Funds saw negative flows.
Sectoral Shifts: Sectoral/Thematic Funds led December inflows, followed by Small Cap and Large & Mid Cap Funds.
Breaking Down Equity Inflows of December 2023
AMC Dominance: Five AMCs - HDFC, Quant, Nippon Life India, ICICI Pru and PPFAS collected over 50% of equity inflows in December.
Leading New Funds: Axis India Manufacturing Fund alone attracted over ₹3,400 Crore; Motilal Oswal Small Cap Fund, WOC Large & Mid Cap Fund, and DSP Banking & Financial Services Fund collectively brought in more than ₹2,300 Crore.
Active Fund Winners: Parag Parikh Flexi Cap Fund, Quant Small Cap Fund, and Nippon India Large Cap Fund were the top recipients in active fund categories.
Redemption Pressure: Notable redemptions faced by Axis Bluechip Fund, Tata Small Cap Fund, and Axis Focussed 25 Fund.
Passive Fund Trends: ICICI Pru Nifty 50 ETF, ICICI Pru S&P BSE Sensex ETF, and Nippon India ETF Nifty 50 BeES led the passive fund inflows, while SBI Nifty 50 ETF experienced outflows.
Peaks in Inflows and Redemptions: Approximately 25 equity funds each secured over ₹300 Crore in inflows, whereas around 10 schemes saw redemptions exceeding ₹200 Crore.
Exploring Equity Scheme Portfolio Trends in December 2023
New Investments: Preference for investing in Indian Bank, Bank of India, Kaynes Technology India, Mankind Pharma, CAMS, Dr. Reddy’s Laboratories and select IPOs like Indian Shelter Finance Corporation, Inox India, DOMS Industries, Happy Forging.
Complete Exits: Withdrawal from Balrampur Chini Mills, Syngene International, Ashok Leyland, Hindustan Unilever, Maruti Suzuki, PI Industries, Cholamandalam Investment & Finance, Bank of Baroda, Aditya Birla Capital, Cummins India, IDFC First Bank.
Broad Buying Trends: Purchases in Indian Bank, Bank of India, Mankind Pharma, HDFC Bank, ICICI Bank, Reliance Industries, Kotak Mahindra Bank, Axis Bank, SBI Life Insurance Company.
Top Traded Stocks: Sell-off in Power Finance Corporation, Bharat Electronics, Hindustan Unilever, Shriram Finance, Infosys, NTPC.
Mid Cap Stocks Activity: Active trading in mid-cap stocks, with sales in Coforge, HPCL, PI Industries and investments in Apollo Tyres, Mphasis, Voltas.
Investment in Small Caps: Fresh investments in over 200 small-cap stocks.
Active Small Cap Trading: Investments in Bharat Dynamics, National Aluminium Company, PVR Inox, Apar Industries, and exits from TVS Holdings.
Preferred Sectors: Investment inclination towards FMCG, Mining, Power, IT, Iron & Steel, Realty.
Sector Exits: Divestment from Hospitality, Plastic Products, Consumer Durables, Insurance, Aviation, Agriculture sectors.
For a comprehensive understanding and more insights, please go through our detailed report.