Mumbai, Aug 16: After declining for two consecutive months, equity assets under management (AUM) of domestic mutual funds rose 10.3 percent month-on-month to Rs 15.2 lakh crore in July as the market rebounded after three months of decline, according to a Motilal Oswal report. The month saw a decline of sales of equity schemes by 14.3 percent on-month to Rs 304 billion and the pace of redemptions picked up to Rs 148 billion, up 16 percent on the month. Consequently, net inflows slowed to Rs 157 billion in July from Rs 228 billion in the previous month.
The Nifty, after three consecutive months of de- cline, bounced back smartly in July with an 8.7 percent on-month gain, the highest since December 2020. The Nifty Midcap 100 outperformed the markets during the month. FIIs registered inflows of $0.8 billion in July after nine months of outflows totaling $33.3 billion; YTD’CY22 outflows stood at $25.4 billion.
Meanwhile, the total AUM for the mutual fund industry increased to Rs 37.7 trillion, up 5.9 percent on- month in July. This was because of a rise in AUM for equities worth Rs 1,412 billion, other ETFs worth Rs 380 billion, balanced worth Rs 210 billion, and income worth Rs 179 billion funds. Contributions to systematic investment plans (SIPs) remained strong at Rs 121.4 billion in July, an eleventh consecutive month of Rs 100 billion-plus investment in the category. The month saw notable changes in the sector and stock allocation of funds.
On a month-on-month basis, the weights of NBFCs, Private Banks, consumers, Retail, Automobiles, Capital Goods, PSU Banks, Metals, Cement, and Media increased, while the weights of Oil & Gas, Technology, Telecom, Healthcare, and Utilities moderated.
