As India's benchmark indices soar to new highs, investors are betting on companies with smaller market capitalisations as reflected in the investment flow in India's equity mutual funds.
While equity mutual funds received a total inflow of Rs 8,637.49 crore in June 2023, the small cap category received the highest inflows of Rs 5,471.75 crore compared to Rs 3,282.50 crore in May. The small cap mutual funds also reported an addition of 6. 9 lakh folios, the highest monthly addition for an equity fund segment.
Most equity fund categories witnessed inflows in June, except for large cap, focused funds, ELSS, and flexi cap funds. The latest data from the Association of Mutual Funds in India (AMFI) reveals that the large cap funds witnessed a second consecutive month of net outflows.
The outflows in the Large Cap Mutual Fund category stood at Rs 2,050 crore in June 2023 and Rs 1,362 crore in May 2023. So far in the current calendar year, the inflows in the large cap space have been among the lowest in diversified equity mutual funds.
" Small-cap funds continue to garner flows, followed by Multicap, Midcap and Large and Mid-caps. Within the hybrid space, Multi-Asset Funds continue to build on momentum of the last two months as debt yield provided attractive investment opportunity along with long term appeal of equity and gold. Overall, investors continue to maintain faith in India’s growth potential and tap the current opportunity in markets to add to positions. On the debt side, medium-term funds, long-duration funds and gilt funds saw inflows, a welcome break from consistent outflows," said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.
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Among large cap stocks, Adani Green, Adani Transmission, Adani Energy, Coal India, JSW Steel, Bajaj Auto, LIC were among the top ten purchases, while Hindustan Zinc, Hindustan Aeronautics, Adani Ports, Wipro, HDFC Life Insurance Company, Dr Reddy's were among the most sold stocks.
In the mid-cap space, IIFL Finance, Bank of Maharashtra, Indus Towers, Star Health and Allied Insurance Company, HDFC Asset Management Company, Timken India, Shriram Finance, Oil India, NMDC, Colgate Palmolive India were the most bought.
In the mid-cap space, IIFL Finance, Bank of Maharashtra, Indus Towers, Star Health and Allied Insurance Company, HDFC Asset Management Company, Timken India, Shriram Finance, Oil India, NMDC, Colgate Palmolive India were the most bought.
L&T Finance, Aditya Birla Capital, Godrej Properties, Max Healthcare Institute, Gujarat Gas, Dixon Technologies, Bandhan Bank, Tata Chemicals were among the ten stocks that were most dumped by mutual funds in the mid-cap space.
Source: ACE MF, ICICI Direct Research. Note: Largecaps/Midcaps/Smallcaps as defined by AMFI. Socks above | 50 crore holding were considered
Source: ACE MF, ICICI Direct Research. Note: Largecaps/Midcaps/Smallcaps as defined by AMFI. Socks above | 50 crore holding were considered
Among small caps, Ikio Lighting, Mangalore Refinery and Petrochemicals, Orchid Pharma, the Karnataka Bank, Suzlon Energy, TD Power Systems, Kalyan Jewellers India, Piramal Pharma and Aether Industries Ltd were the most bought.
Rain Industries, Pricol, Railtel Corporation Of India, Heidelberg, Cement India, Hindustan Construction Company, Aarti Pharmalabs, Global Health, Anupam Rasayan India Ltd, Aditya Birla Sun Life AMC, Elin Electronics were the most sold.