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Thanks to relentless rally in equity markets, the assets under management of top-20 equity funds has increased 4.6 per cent month-on-month to ₹25.24 lakh crore in July despite sharp increase in profit-booking.
Among the Top 10 funds, the highest rise m-on-m rise was registered by Nippon India MF and ICICI Prudential Mutual Fund by 6.5 per cent and 6.4 per cent at ₹2.02 lakh crore and 2.90 lakh crore while market leader SBI MF logged a rise of 4.1 per cent at ₹5.42 lakh crore, according to the Motilal Oswal’s Funds Folio report.
HDFC MF and DSP MF recorded 6.3 per cent and 5.1 per cent at ₹2.68 crore and ₹76,000 crore while growth in Kotak Mahindra Mutual Fund was up 4.7 per cent at ₹1.65 lakh crore, it added. Invesco MF registered the highest growth of seven per cent on lower base of ₹36,100 crore.
In last one year, top-20 equity MF assets have increased by 26 per cent or by ₹5.14 lakh crore in July.
DP Singh, Deputy Managing Director, SBI Funds Management said inflows into equity funds were through two avenues in the form of SIPs and lump sums. The major flow for SBI MF was through SIP which has been growing steadily while lump sum investment was also flowing-in, but there were certain set of investors who preferred to book profit in this category.
Going ahead, he said SBI MF believes that equity inflows will remain buoyant as almost all sections of investors are now convinced that they have to be part of equity investment for generating wealth in long term and most of them prefer the mutual fund route. SIP inflow will continue to grow for the next three-four years given the low penetration, he added.
The benchmark Sensex had rallied by 1,809 points or 2.79 per cent and made a new high of 67,619 points in July while on back of increased inflows from foreign portfolio investors. The Nifty 50 rose 2.94 per cent in July.
FPI bought shares worth ₹46,618 crore on a net basis in July though it was slightly less than inflow of ₹47,150 crore in June, the highest monthly FPI inflow since last August.
Between March and July, FPIs have been net buyers of equities in each of the last five months, purchasing shares worth ₹155,308 crore and triggering a 14 per cent rise in Nifty 50 index.
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