Mutual funds' AUM soars 41% to Rs 31.4 trn in FY21
This was primarily led by an increase in AUM of equity funds (Rs 4,092 billion), income funds (Rs 2,392 billion) and other ETFs (Rs 1,295 billion), says a study
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The year saw a decline in sales of equity schemes (down 7 per cent YoY to Rs 2,306 billion). The pace of redemptions picked up to Rs 2,653 billion (up 64 per cent YoY), leading to the first ever net outflows in seven years at Rs 347 billion in FY21
Mumbai: Total AUM (asset under management) of the mutual fund industry rose 41 per cent YOY, scaling new highs to reach Rs 31.4 trillion in FY21. This was primarily led by an increase in AUM of equity funds (Rs 4,092 billion), income funds (Rs 2,392 billion) and other ETFs (Rs 1,295 billion), says a study.
Equity AUM (including ELSS and index funds) of domestic MFs reached new highs of Rs 10.2 T (+67 billion YoY) in FY21, led by a rise in market indices (Nifty +71 per cent YoY). The year saw a decline in sales of equity schemes (down 7 per cent YoY to Rs 2,306 billion). The pace of redemptions picked up to Rs 2,653 billion (up 64 per cent YoY), leading to the first ever net outflows in seven years at Rs 347 billion in FY21, says the Fund Folio report from Motilal Oswal Financial Services (MOFS).
The year saw a notable change in the sector and stock allocation of funds. The weightage of domestic Cyclicals increased by 160 bases points (bp) to 58 per cent, led by an increase in the weightage of automobiles, NBFCs, cement, real estate, chemicals, and infrastructure. Technology sector saw a massive rise in weightage in FY21 to 11.9 per cent (+300 bp 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 100 bp to 32.5 per cent, led by consumer, utilities, and telecom. Global Cyclicals' weightage, too, fell 60 bp to 9.5 per cent.
MOFS' 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.
Coming on IT sector, TCS has shown positive results in its recently concluded financial result.
Talking to Bizz Buzz, Sorbhi Gupta, Fund Manager, (Equity) Quantum MF, says, "Demand environment in technology sector is good. As people are expecting better financial results from them, I do see good inflows in the industry to continue as DIIs are constantly been selling due to the redemption pressure they are faced with."
