Mutual Fund Review - February, 2022 - ICICI Direct

Industry Synopsis

• The mutual fund industry AUM at the end of January 2022 rose marginally to RS. 38 lakh crore from RS. 37.7 lakh crore in December 2021. The year 2021 saw total industry AUM rising by 22%
• The AUM of equity funds in January 2022 was at RS. 13.4 lakh crore, almost similar to last month as markets ended flat for the month after extreme volatility
• The trend of inflows into equity funds continued with the start of the new calendar year as well. January 2022 received highest ever inflows (ex-NFO) at RS. 14900 crore compared to RS. 12600 crore in December 2021. The sharp fall in January attracted higher inflows from investors reflecting increased investment maturity among retail investors
• The trend of increasing amount of SIP continued with January 2022 seeing inflows through SIP at RS. 11500 crore compared to RS. 11300 crore in December 2021
• The debt funds after witnessing higher returns and higher inflows for two to three years, continue to see outflows. Funds except liquid/ultra-short/low duration, witnessed outflows of RS. 8000 crore in January 2022
• The trend of higher inflows into ETFs continued with higher inflows into the index on the back of regular NFOs

Performance Highlights

• Equity markets in the last few months have been extremely volatile on the back of rising global market volatility. Globally, rising inflationary concerns and geo-political tension has led to risk aversion among investors leading to sharp fall in equity markets across the globe. For Indian markets, rising crude oil prices and continuous selling by foreign institutional investors is leading to rising volatility
• Midcap and small cap funds have underperformed in last one month as investors look to book profit in specific stocks in a volatile global equity environment
• Banking funds, after having underperformed, have seen a sharp improvement in performance in the last one month. Similarly, while IT funds remain best performing for a longer duration, they are one of the worst performing categories of funds since the start of 2022

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

MutualFund ReviewReport ICICIDirect February2022