As per AMFI’s data, inflows in equity-oriented schemes came in at ₹9,390.35 crore in October 2022, although lower than the previous month’s level where the inflow was around ₹14,099.73 crore. Thematic funds, midcap, and smallcap funds witnessed massive inflows. Notably, equities continue to be the top picks of mutual funds.
On the other hand, there was a slowdown in the outflow under debt-oriented schemes to ₹2,817.79 crore in October — compared to an outflow of a whopping ₹65,372.40 crore in September. In the latest month, huge buying in liquid funds minimised the outflow in the overall debt-oriented schemes.
Furthermore, in October, the contribution to SIPs rose to ₹13,041 crore compared to ₹12,976 crore in the previous month. The inflows in SIPs have stayed above ₹12,000 crore from May till September this year.
According to IDFC Capital research note, NMDC Steel, Electronics Mart India, Global Health, Aarti Pharmalabs, Tracxn Technologies, Punjab Alkalies & Chemicals, DCX Systems, JTL Infra, and Spandana Sphoorty Financial — are nine new stocks added by the mutual funds in October 2022.
The research note highlighted that NMDC Steel had a market value of ₹307.44 crore, Electronics Mart at ₹226.63 crore, Global Health at ₹160.62 crore, Aarti Pharmalabs at ₹138.85 crore, Tracxn Technologies at ₹122.88 crore, DCX Systems at ₹75 crore, Punjab Alkalies at ₹38.01 crore, JTL Infra at ₹12.36 crore, and Spandana Sphoorty at ₹7.35 crore.
Tracxn Technologies was listed on exchanges on October 20, while DCX Systems debuted on November 11. Notably, Global Health is set to list on November 16 on exchanges after its initial public offering.
Among the stocks that mutual funds offloaded in October 2022 were — Muthoot Capital Services with a market cap of ₹11.32 crore, and Meghmani Finechem at the market value of ₹0.05 crore, as per the data.
Further, as per Prime Database, in terms of mutual funds — SBI MF held leadership with a market share of 20.56% with its holdings valuing over ₹4.57 lakh crore as of October 31, 2022. ICICI Prudential MF and HDFC MF followed with a market share of 10.73% and 9.51% by end of October month. Nippon India MF and UTI MF were among the top 5 mutual funds with a market share of 7.42% each.
Gopal Kavalireddi, Head of Research at FYERS said, “During the current earning season, owing to lower volume growth, high-cost inventory, and subdued demand, the operating and net profit margins of most companies were on the lower end. This could result in earnings downgrade by analysts across many sectors. Based on the second quarter results announced to date, the banking and financial sector is seen to be the one bright spot, with almost all public and private sector banks showing excellent growth.”
Kavalireddi added, “While the volatility in markets continues, as the benchmark indices are currently placed at a throwing distance from their lifetime highs, investors have reposed faith in Indian stock markets and continue to opt for equity investments through direct equity, as well as systematic investment plans of mutual funds. SIP inflows hit an all-time high of Rs.13,040 crore, after 5 consecutive months of inflows above the Rs.12,000 crore mark.”
As of October 31, 2022, the net asset under management (AUM) stood around ₹39,50,323.28 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.