Mutual fund equity assets up 4 per cent in April, even as inflows dip

Although there is a volatile market, the top 20 companies investment funds It recorded a 4 per cent month-on-month increase in equity investments, including hybrid plans and others, to reach Rs.22.14 lakh crore in April.

SBI Mutual Fund and Axis MF led the table with 5 per cent each in equity assets to Rs 4.78 crore and Rs 1.34 crore, reports Motilal Oswal’ Fund Folio.

The equity assets of Nippon MF and HDFC MF rose by 4.9 per cent and 4.5 per cent to Rs 1.71 crore and Rs 2.29 crore. ICICI MF, the second largest fund of funds, recorded a 2 per cent jump in equity assets of Rs 2.52 crore, buoyed by a sharp rally in the markets.

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Stylish valuation is growing 4 percent month over month

The increase in the equity assets of the largest finance houses came on the back of a 4.1 percent month-on-month rise elegant The valuation rose to Rs 18.06 lakh crore in April.

The report said that after a poor performance in the past four months, Nifty recovered by 4.1 percent on a monthly basis in April, although the index was volatile and fluctuated by 776 points, before closing at a height of 705 points.

Nifty underperformed both emerging market and global indices in the last four months of this year, amid global headwinds such as inflation, interest rates and currency. It added that fisheries companies remained net buyers for the second consecutive month at $1.9 billion in April, after recording inflows of $1.8 billion in March.

Retail investors scaled back their equity investments in April as inflows into mutual fund share plans fell 68 per cent to Rs 6,480 crore, from Rs 20,534 crore, according to the latest data from the Mutual Funds Association of India.

Himanshu Srivastava, Associate Principal – Director of Research at Morningstar India, said that despite concerns about growth in developed markets, mutual funds continued to garner net inflows for the 26th consecutive month.

He added that although inflows across equity classes have declined since the beginning of the year, none of the classes witnessed net outflows, except for the focused equity class, which saw a fundamental erosion of Rs 131 from its coffers.