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, offering key insights into the evolving landscape of financial opportunities.
Emerging Investment Patterns in Equity Mutual Fund Scheme Categories
Record AUM Achievement: Equity Mutual Fund Schemes' Net AUM reached an all-time high of ₹22.50 Lakh Crore, propelled by substantial market growth.
Surging Open-Ended Equity Fund Inflows: Inflows surged by 28% to ₹21,781 Crore in January, marking a continuous positive trend for 35 months.
Popular Investment Choices: Small Cap, Sectoral/Thematic, and Mid Cap Funds remained the preferred choices at 2024's outset.
Impressive Fund Attraction: From April to January 2024, Small Cap Funds drew ₹37,361 Crore with 52% average returns; Sector/Thematic and Mid Cap Funds amassed ₹26,958 Crore and ₹19,401 Crore, with 40% and 47% returns, respectively.
Highest Inflows: Sectoral/Thematic Funds led January inflows, ahead of Small Cap and Multi Cap Funds.
AMC-wise Inflow Distribution: SBI, Quant, HDFC, Nippon India, ICICI Pru, and PPFAS Mutual Funds collectively represented over 70% of January's total equity inflows.
Breaking Down Equity Inflows of January, 2024
Leaders in Active Fund Categories: Parag Parikh Flexi Cap Fund, Quant Small Cap Fund, and Nippon India Large Cap Fund stood out as the leading equity inflow schemes in 2024.
Rise of Contra Funds: SBI Contra Fund, a leader in the contra fund category, witnessed significant equity inflows in January, indicating growing interest in this investment strategy.
Widespread Attraction: Around 27 equity mutual fund schemes each successfully garnered inflows exceeding ₹300 Cr, indicating broad-based investor interest across various fund categories.
Uncovering Trends in Equity Scheme Portfolios for January, 2024
Preferred Stocks for New Investments: Equity mutual fund schemes showed a preference for investing in ONGC, BHEL, Biocon, Voltas, Sobha, Gujarat Gas, Lupin, IndusInd Bank, Cipla, and Bank of India. Initial Public Offerings (IPOs) like Medi Assist Healthcare Services and Jyoti CNC Automation were also popular investment choices.
Exits from Certain Stocks: Some equity schemes completely exited investments in Polycab India, Zee Entertainment Enterprises, The Federal Bank, Navin Fluorine International, Bandhan Bank, Bajel Projects, Mahindra & Mahindra Financial Services, and LTIMindtree.
Broad Buying Trends: Across all equity mutual fund schemes, there was notable buying in Reliance Industries, Maruti Suzuki, Kotak Mahindra Bank, Axis Bank, Larsen & Toubro, and SBI Life Insurance Company.
Most Traded Stocks with Selloffs: The most traded stocks experiencing a selloff included ICICI Bank, NTPC, Infosys, Bharti Airtel, Bajaj Finance, Avenue Supermarts, SBI, NHPC, Mahindra & Mahindra and Zomato.
Preferred Investment Sectors: Business Services, IT, Insurance, Metals, Crude Oil, and Gas Transmission were favored sectors for equity mutual fund schemes.
For a comprehensive understanding and more insights, please go through our detailed report.