Equity mutual funds witnessed outflow for the third consecutive month in September with investors moving out Rs 734 crore compared to an outflow of Rs 4,000 crore in August, the AMFI data showed. Except for equity-linked saving schemes (ELSS), focused fund and sectoral categories, all the other equity categories witnessed net outflow.
The August outflow came on the back of a large pull-out from multi-caps due to the Sebi guidelines which directed Multi-cap funds to keep at least 25 percent of their assets each in large-cap, mid-cap and small-cap stocks.
The month witnessed notable changes in the sector and stock allocation of funds, brokerage house Motilal Oswal noted in a recent report. While IT sector's weight increased 140 bps MoM to hit a new high of 11.6 percent, private banks’ weight hit a 29-month low, down 150 bps MoM, the report stated.
Despite this, private banks remained the top sector holding for MFs in September 2020 at 15.8 percent, however IT sector followed closely.
This trend was well witnessed in stock value changes as well. Five of the top-10 stocks with the most MoM increase in value were from the technology space: Infosys, Wipro, HCL Tech, Tech Mahindra, and Wipro, added MOSL.
Other stocks from the Nifty50 index that saw maximum increase in value were RIL, Dr Reddy's, Cipla, Ipca Labs and Maruti Suzuki.
While, among stocks exhibiting maximum decrease in value MoM, 3 were a private banks. The top 5 decreases among stocks were ICICI Bank, Axis Bank, SBI, Bharti Airtel and Kotak Mahindra Bank, the report further stated.
Among other sectors, healthcare’s weight hit a 55-month high to 8.7 percent, up 70 bps MoM. Weights of auto, oil & gas, chemicals, and cement also increased while utilities, telecom, NBFCs, capital goods, consumer and metals witnessed maximum decrease.
(Edited by : Abhishek Jha)
First Published: IST