Fundmanagersrushtoacquir metals, dump oil & gas, banks
The weightage of the oil and gas sector plunged to a 48-month low in July
Fund managers in India continued their penchant for metal shares in July while paring their holdings of oil and gas stocks.
This at a time when inflows into equity schemes hit a new high underscoring investor bets on sustained demand for commodities with the global economy gradually emerging from the pandemic.
In July, mutual funds scaled their weightage in metals to a 33-month high of 3.4%, an increase of 1.3 percentage points from a year earlier and 50 basis points (bps) sequentially, showed data from the Association of Mutual Funds in India (AMFI) and NAV India analysed by Motilal Oswal Financial Services Ltd.
The review includes data for India’s top 20 domestic mutual fund houses which together command nearly 97% of the industry in terms of assets under management (AUM).
“On a month-on-month basis, the weights of metals, cement, real estate, chemicals, telecom, textiles and retail increased, while the weights of oil & gas, private banks, automobiles, utilities, consumer, and technology moderated. Private banks (16.8%) was the top sector holding for mutual funds in July, followed by technology (11.7%), healthcare (7.7%) and NBFCS (7.4%)” said Deven Mistry, analyst, Motilal Oswal Financial Services.
The weightage of the oil and gas sector plunged to a 48-month low of 6.4% in July, falling 50 bps sequentially and 340 bps from a year earlier. Similarly, fund managers also dumped shares of private banks, reducing weightage of the sector for the sec straight month to 16.8%, d 30 bps sequentially but u bps from a year earlier.
The Nifty Metal in jumped nearly 11% in July, pacing a meagre 0.3% rise in benchmark index Nifty. N Private bank index was d 1.74% while Nifty Oil&gas in shed 3.50% during the mon
As stock markets contin to score record highs, def talks of elevated valuations inflows into equity mutual f schemes galloped to a new in July, rising almost six ti in a month.
According to data release the Association of Mu Funds in India (Amfi), July a net inflow of ₹20,742.77 c into equity schemes, a 3 jump from ₹4,608.75 cror June. New fund offers (NFO mutual fund houses during month also contributed to high net inflow into ove equity schemes.
The contribution of mon systematic investment p (SIP) hit a record ₹9,60 crore in July from ₹9,15 crore in the previous mont
According to Edelweiss S rities, mutual funds deploy record ₹5,900 crore in in public offerings (IPO).