Mutual Fund Review - August, 2022 - ICICI Direct

Industry Synopsis

- The mutual fund industry AUM at the end of July 2022 rose 5.9% to Rs. 37.7 lakh crore compared to Rs. 35.6 lakh crore in June 2022. The rise in AUM was primarily due to mark to market gains in equity oriented funds

- The AUM of pure equity funds in July 2022 was at Rs. 14.2 lakh crore compared to Rs. 12.9 lakh crore in June 2022. Inflows in July were at Rs. 8900 crore against Rs. 15500 crore in June. Inflows declined sharply across categories as investors shied away from putting money at higher levels as markets recover. SIP inflows continue to remain healthy at Rs. 12139 crore in July compared to Rs. 12275 crore in June

- The AUM of Dynamic Asset Allocation/Balanced Advantage is at Rs. 1.87 lakh crore. The balanced advantage funds category has seen lower inflows of Rs. 554 crore in July

- The trend of outflow in other debt funds continues as the outlook remains cautious in the rising interest rate environment

- Index funds, which are largely dominated by retail investors, saw higher inflows in July at Rs. 6779 crore compared to Rs. 7300 crore in June. AUM of Index funds is now at Rs. 94600 crore in July 2022. Equity ETF AUM grew to Rs. 4.4 lakh crore from Rs. 3.9 lakh crore in June

Performance Highlights

- The last two months saw a broad based market recovery with almost all categories of funds recovering from the lows. The returns from lows in the last two months across categories of funds varies between 17% and 20% with small cap funds delivering around 17% return while large cap funds were up around 18%

- Prior to the recent rally, large cap funds have seen a fall of around 18% while category average of midcap and small cap funds has fallen around 20% during a similar period

- Banking funds have seen relative outperformance in the last few months as investors bank on better earnings prospects in a post Covid environment

- Global funds continue to underperform

- IT funds have significantly underperformed in last six months

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

Source : Equity Bulls

Keywords

MutualFundReview ICICIDirect August2022