Equity AUM at new peak: Top 10 stocks that rose the most in November

Assets under management ( AUM) for domestic mutual funds (including ELSS and index funds) increased 7.8 per cent month on month to Rs 22.3 trillion in November 2023, fueled by a rise in market indices (Nifty up 5.5% MoM) but the month saw a decline in sales of equity schemes, down 10.5% month-on-month to Rs 430 billion, shows data analysed by Motilal Oswal Financial Services.

The pace of redemptions remained unchanged at Rs 261 billion, up 0.4 per cent month-on-month.

The MF industry’s AUM scaled new highs to reach  Rs 49 trillion in November 2023, primarily led by a monthly increase in AUM for equities,  other ETFs, balanced and arbitrage funds, as well as liquid funds. Notably, AUM was up MoM across categories.

Key facts:

1. On a monthly basis, the weights of Healthcare, Real Estate, Technology, Utilities, Retail, and Metals increased, while that of Banks (Private & PSU), Consumer, Chemicals, and Consumer Durables moderated.
2. Healthcare’s weight jumped to a 19-month high of 7 per cent 
3. Technology’s weight, after moderating in the last two months, scaled back in November 2023 to 9.5 per cent
4. Private Banks’ weight moderated for the fifth consecutive month to 18.2 per cent
5. Consumer’s weight declined to 6.5 per cent in November 2023 – the lowest since Jun’22.

Top 10 stocks that saw the maximum month-on-month increase in value

HDFC Bank, Infosys, Bharti Airtel, Reliance Industries, ICICI Bank, Axis Bank, L&T, NTPC, Sun Pharma, and PFC. Stocks that witnessed the maximum MoM decline in value were SBI, BOB, Tata Communications, Cholamandalam Financial Holdings, Polycab India, SBI Cards, IndusInd Bank, Persistent Systems, Thermax, and SKF India

Top schemes and NAV change: All top 25 schemes close higher MoM

Among the top 25 schemes by AUM, the following reported the highest MoM increase: Nippon India Growth Fund (+10% MoM change in NAV), Nippon India Small Cap Fund (+8.4% MoM), HDFC Mid-Cap Opportunities Fund (+8% MoM), HDFC Small Cap Fund (+7.9% MoM), and HDFC Flexi Cap Fund (+7.4% MoM).

In Nov’23, MFs showed an interest in Healthcare, Real Estate, Technology, Utilities, Retail, and Metals, leading to a MoM rise in their weights. Conversely, Banks (Private & PSU), Consumer, Chemicals, and Consumer Durables saw a MoM moderation in weights. Private Banks (18.2%) was the top sector holding for MFs in Nov’23, followed by Technology (9.5%), Autos (8.4%), Capital Goods (7.2%), and Healthcare (7.0%).  Real Estate, Metals, Healthcare, Retail, and Utilities were the sectors to witness maximum increase in value MoM.

Sectoral allocation of funds: Healthcare, Capital Goods, and Autos over-owned

The top sectors where MF ownership vis-à-vis the BSE 200 are at least 1% higher: Healthcare (15 funds over-owned), Capital Goods (15 funds overowned), Automobiles (11 funds over-owned), NBFCs (11 funds over-owned), and Chemicals (11 funds over-owned).

The top sectors where MF ownership vis-à-vis the BSE 200 are at least 1% lower: Consumer (20 funds under-owned), Oil & Gas (19 funds underowned), Private Banks (15 funds under-owned), Utilities (14 funds under-owned), and Technology (12 funds under-owned).