Inflows into equity mutual funds plummet in November; MFs reduce assets in ICICI Bank, HCL Tech, Kotak Mahindra Bank | Jobs Vox

  • Inflows into equity mutual fund schemes fell 76% in November to ₹2,258 crore from ₹9,390 crore in October.
  • Meanwhile, debt mutual fund schemes saw inflows of £3,668m during the month compared to outflows of £2,817m in the previous month.
  • In November, SIP inflows were the highest ever at ₹ 13,306 crore. This compares to an inflow of INR 13,040 crore in October.
  • Meanwhile, the net assets under management (AUM) of the mutual fund industry stood at Rs 40.37 lakh crore as on November 31, 2022.

Inflows into equity mutual funds fell 76% in November as markets remained volatile amid global uncertainty over the pace of rate hikes by central banks across the US and Europe.

According to AMFI, the regulatory body for the mutual fund sector, flows into mutual fund schemes fell to ₹ 2,258 crore in November from ₹ 9,390 crore in October.

Meanwhile, debt mutual fund schemes, which are seen as relatively safer, saw inflows of £3,668m during the month compared to outflows of £2,817m in the previous month.

“The market continues to react to global headwinds.” Rate hikes will continue to affect global markets, but not for long, however, () the mutual fund industry has performed well. There has been an outflow from retail schemes as people are cashing in the profits,” said NS Venkatesh, CEO of AMFI in a statement. He cited the holiday season as a reason why people are taking profits.

The net assets under management (AUM) of the mutual fund industry stood at Rs 40.37 lakh crore as on 31 November 2022.

On the other hand, SIP (systematic investment plan) inflows in November were at an all-time high of INR 13,306 crore. In October, the inflow was 13,040 million pounds.

In November, mutual funds floated ₹1,700 crore, while foreign institutional investors (FIIs) bought ₹34,900 crore in India’s secondary market, according to a report by Nuvama Institutional Equities (formerly Edelweiss Institutional Equities).

Key stocks bought by mutual funds in November include HDFC Bank and Akis Bank. Meanwhile, mutual funds reduced their holdings in ICICI Bank, HCL Technologies and Kotak Mahindra Bank, according to Nuvama.

Key additions of the MoF Key deductions of the Ministry of Finance
Akis Bank HCL Technologies
Archean Chemicals Kotak Mahindra Bank

(Source: Nuvama Institutional Equities)

$AKSISBANK.NSE Breaking from the previous swing high and retesting it and moving up. The next tgt level to look for in the short term is 972 (61.8% of previous fibo extensions to the upside)

— (@DhvaniTA) December 13, 2022

Although the market remains volatile, the primary market has been recovering since November – the month that saw the highest number of IPO launches for 2022 at nine.

Among the nine IPOs, the largest investment by mutual funds was in specialty chemicals company Archean Chemical Industries which listed at a premium of 10% to its issue price of INR 407 crore.

Key additions in Midcap by MF Key Midcap Cuts by MoF Key additions in Smallcap by MF Key Smallcap Cuts by MF
Delhivery BHEL Archean Chemical Praj Industries
Max Financial Ramco Cements Fusion Micro Finance GE Shipping Co
Bikaji Foods International Gujarat Gas Kaines Technology UTI AMC
PB Fintech PVR Fine Payments

(Source: Nuvama Institutional Equities)

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