April 2024 saw robust activity in the mutual fund (MF) sector, with strong net flows and significant shifts in stock holdings across various sectors. Here is a comprehensive overview of the key trends and changes in MF investments during the month, highlighting the top buys and sells, sector-wise changes in holdings, and the overall cash levels maintained by MF schemes.
Mutual Fund Flows in April 2024
- Equity net flows: Rs 189 billion (down from Rs 226 billion in March 2024).
- Excluding NFOs: Rs 177 billion (down from Rs 195 billion in March 2024).
- Total open-ended equity AUM growth: 5.3% (up from 1.6% in March 2024).
Sector-Wise Changes in Stock Holdings
| Sector wise weight by value (Apr 24) | ||||||||||
| Sector | SBI | HDFC | ICICI Pru | Nippon India | Aditya Birla | UTI | Kotak | Axis | Franklin Templeton | DSP |
| Auto & Ancillary | 9% | 8% | 12% | 8% | 9% | 8% | 14% | 12% | 7% | 10% |
| Financials | 28% | 33% | 26% | 26% | 28% | 28% | 19% | 22% | 24% | 25% |
| Staples | 6% | 3% | 5% | 5% | 4% | 4% | 3% | 3% | 3% | 5% |
| Discretionary | 8% | 5% | 5% | 11% | 9% | 9% | 6% | 9% | 9% | 6% |
| Industrials | 8% | 7% | 6% | 11% | 6% | 3% | 9% | 6% | 8% | 7% |
| Transport | 2% | 1% | 2% | 2% | 2% | 2% | 3% | 1% | 2% | 1% |
| Metals & Mining | 4% | 3% | 3% | 3% | 3% | 4% | 4% | 1% | 2% | 4% |
| Building Material | 4% | 2% | 4% | 2% | 5% | 3% | 6% | 5% | 6% | 4% |
| IT | 4% | 8% | 9% | 6% | 10% | 11% | 6% | 7% | 9% | 6% |
| Healthcare | 7% | 10% | 9% | 6% | 7% | 7% | 6% | 9% | 7% | 11% |
| Agriculture & Chemicals | 2% | 2% | 1% | 3% | 2% | 1% | 5% | 6% | 2% | 6% |
| Oil & gas | 7% | 5% | 8% | 3% | 6% | 5% | 6% | 3% | 5% | 5% |
| Utilities | 3% | 3% | 4% | 4% | 2% | 2% | 1% | 5% | 3% | 1% |
| Telecom & Media | 3% | 4% | 5% | 2% | 4% | 4% | 3% | 3% | 3% | 2% |
| Others | 6% | 7% | 3% | 8% | 5% | 7% | 9% | 8% | 10% | 7% |
Increased Exposure
Financials
- Weight increased by 38 bps to 28.7%.
- Key stocks: Punjab National Bank (PNB), Kotak Mahindra Bank (KMB), Axis Bank, SBFC Finance, City Union Bank.
Metals & Mining
- Weight increased by 27 bps to 3.6%.
- Key stocks: Steel Authority of India Limited (SAIL), NACL, Hindalco, NMDC, Vedanta.
Telecom and Media
- Weight increased by 26 bps to 3.6%.
- Key stocks: Bharti Hexacom, Indus Towers, Zee, HFCL, Sun TV.
Utilities
- Weight increased by 20 bps to 3.8%.
- Key stocks: Suzlon, Power Grid Corporation of India Limited (PGCIL), Tata Power, CESC, NTPC.
Decreased Exposure
Information Technology (IT)
- Weight decreased by 77 bps to 8%.
- Key stocks sold: Firstsource Solutions, LTIMindtree, Route Mobile, TCS, CMS Info Systems.
Healthcare
- Weight decreased by 30 bps to 7.2%.
- Key stocks sold: Marksans Pharma, Aster DM, Biocon, Lupin, Divis Labs.
Oil & Gas
- Weight decreased by 17 bps to 6.7%.
- Key stocks sold: IGL, Gujarat State Petronet, Gujarat Gas, Oil India, IOCL.
Staples
- Weight decreased by 14 bps to 4.7%.
- Key stocks sold: ITC, Nestle, Emami, Heritage Foods, TCPL.
Auto Ancillary
- Weight decreased by 7 bps to 8.7%
Top Buys and Sells Across Sectors
Top Stocks Bought by Mutual Funds
Large Caps
- Punjab National Bank (PNB)
- Kotak Mahindra Bank (KMB)
- Zomato
- Power Grid Corporation of India Limited (PGCIL)
- Axis Bank
Mid Caps
- Suzlon
- Steel Authority of India Limited (SAIL)
- GMR Airports
- Ashok Leyland
- NMDC
Small Caps
- Sterlite Tech
- SBFC Finance
- NACL
- City Union Bank
- Indian Energy Exchange (IEX)
Top Stocks Sold by Mutual Funds
Large Caps
- Jio Financial
- State Bank of India (SBI)
- Bharat Electronics Limited (BEL)
- Tata Steel
- ITC
Mid Caps
- Vodafone
- NHPC
- Federal Bank
- IDFC First Bank
- Exide
Small Caps
- TV18 Broadcast
- IRB Infrastructure
- NMDC Steel
- Marksans Pharma
- Aster DM
Cash Levels Across Schemes
- Overall cash level: Decreased by 17 bps to 4.2% (Rs 894 billion).
Increases in Cash Levels
- Value Fund-Contra Fund: +46 bps.
- Small Cap Fund: +45 bps.
Decreases in Cash Levels
- Focused Fund: -76 bps.
- Large & Mid Cap Fund: -64 bps.
- Sectoral / Thematic Fund: -47 bps.
- Mid Cap Fund: -42 bps.
- Dividend Yield Fund: -35 bps.
- Large Cap Fund: -6 bps.
- Equity Linked Savings Scheme (ELSS): -5 bps.
- Multi Cap Fund: -2 bps.
Conclusion
April 2024 was a dynamic month for mutual funds in India, marked by significant net flows and notable shifts in sectoral holdings. Key takeaways include:
- Increased investments in the financial, metals & mining, telecom & media, and utilities sectors.
- Reduced investments in the IT, healthcare, oil & gas, staples, and auto & ancillary sectors.
- Significant buys and sells across large, mid, and small-cap segments.
- A slight decrease in overall cash levels, with varying changes across different fund categories.