15 September 2017
Equities - India
10 Yrs G-Sec
10 Yrs AAA Corp
Flows (USD b)
Note: YTD is calendar year, *Avg
Today’s top research theme
Fund Folio: AUM scales new highs; global cyclicals see buying
Domestic mutual fund industry equity AUM rose for the ninth consecutive month
in August to scale a new high of INR6.4t (+2.3% MoM and +37% CY17 YTD).
The increase in equity AUM was led by a rise in equity scheme sales to
INR325b (+16% MoM) and a fall in redemptions by 21% MoM to INR121b (as
market indices were down; Nifty -1.6% MoM), leading to a rise in net inflows
(INR204b, +60% MoM). Notably, net inflows of INR204b in August were the
highest-ever in a month.
In August, 982k new SIP accounts were added, taking the total SIP accounts to
15.9m. The total amount collected through SIP during the month of August
was INR52.1b, up ~50% YoY.
The month saw a notable change in sector and stock allocation of funds.
Weight of Global Cyclicals is now in double-digits (10.5%, +90bp MoM).
Defensives’ weight too increased by 30bp to 23.7%, led by a rise in the weight
of Utilities (+40bp to 3.4%). Domestic cyclicals’ weight fell by 120bp to 65.8%
due to a decline in the weights of Banks (PVT and PSU), Autos, Capital Goods
and Infrastructure, partly offset by a small increase in the weight of NBFCs.
Sep-17: Indian Mutual Fund Tracker — AUM scales new highs
August inflation doesn’t dampen case for rate cut
Real Estate Day Turning toward a new paradigm
Piping hot news
SEBI may probe Shree Cement, NBI promoters over allegations of defraud
Promoters of NBI Industrial Finance, a stakeholder in one of North India’s
leading cement company Shree Cement, may be examined by SEBI on
allegations of defrauding minority shareholders.
Chart of the Day: Sector allocation of domestic MFs – weights of Global Cyclicals increased,
while those of Domestic Cyclicals’ saw signs of moderation
Weight of Global Cyclicals is now in double-digits (10.5%,
Domestic cyclicals’ weight fell by 120bp to 65.8%
Research Team (Gautam.Duggad@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.