According to a report by brokerage firm Motilal Oswal Financial Services (MOFSL) released on Monday, the equity asset under management (AUM) for domestic mutual funds (MFs), including ELSS and index funds, reached new highs of Rs 13.9 lakh crore, up 46 per cent year-on-year (YoY) in CY21, led by a rise in market indices and an increase in equity scheme sales.
Consequently, net inflows came in at three-year highs of Rs 1,04,800 crore in CY21, up from Rs 6,400 crore in CY20 and Rs 76,800 crore in CY19, the Fund Folio report from the brokerage firm added.
The Nifty recorded impressive gains of 24 per cent YoY despite adverse COVID-related challenges in CY21.
Further, the report noted that the MF industry’s total AUM increased 22 per cent YoY (Rs 6.7 lakh crore) to Rs 37.7 lakh crore in 2021, led by an increase in equity funds, other ETFs, and balanced funds. The total AUM for the MF industry rose (1 per cent MoM) to Rs 37.7 lakh crore in December 21, led by a MoM increase in AUM for equities / other ETFs / balanced funds. AUM for income and liquid funds declined to Rs 32,100 core and Rs 14,300 crore MOM, respectively.
Defying the looming challenges, investors continue to invest in MFs, with inflows and contributions in systematic investment plans (SIPs) reaching fresh highs of Rs 11310 crore in December 2021 (up 2.7 per cent MoM and 34.3 per cent YoY), the report further stated.
Moreover, the year also saw a notable change in the sector and stock allocation of funds. The weight of domestic cyclicals increased 160bps to 58.8 per cent, led by an increase in the weights of Capital Goods, PSU Banks, Retail, Automobiles, Infrastructure, and Cement, the brokerage firm added.
Motilal Oswal Financial Services’ 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.
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