Page 14 - Banking Finance December 2022

MUTUAL FUND

Mutual Fund

News

Axis, SBI and HDFC Bank AMFI showed. It has expanded for funds holding in the total MF AUM to
eight months in a row and stays above a record 38%, a gain of 10% in the past
top buys of Mutual Funds
the long-term average share of 11.7%. two years.
Axis Bank, SBI and HDFC Bank were
The AUM of the SIP funds and that of
among the top buys of some money
the total MF industry was at a record ICICI Prudential MF
managers; ICICI Bank was a sell at fund
high of Rs 6.8 lakh crore and Rs 40.4
houses including SBI, ICICI Prudential launches ICICI Prudential
lakh crore in November respectively.
and Kotak. Nifty Commodities ETF
The SIP flow has grown at a faster clip
These mutual funds mostly sold insur-
over the past few quarters. As a result, ICICI Prudential Mutual Fund has
ance companies, including SBI Life and
the SIP AUM grew by 35% annually in launched ICICI Prudential Nifty Com-
ICICI Prudential Life. The trend was modities ETF, an open-ended ETF rep-
the past two years compared with
mixed when it came to complete exits licating the Nifty Commodities Index.
16% growth in the total MF AUM.
or fresh purchases. While HDFC Mu-
The Index is designed to reflect the
The net inflow in equity funds dropped
tual, UTI, Kotak and Mirae mostly re-
behaviour and performance of a diver-
to a 21-month low of Rs 2,258 crore in
frained from fresh purchases during
sified portfolio of companies repre-
the month amid concerns over rich November amid rising concerns over senting the commodities segment, in-
valuations, the complete exits were far rich valuations. A sustained momen- cluding sectors like oil, petroleum prod-
more in number at these fund houses. tum in the SIP inflow suggests an el-
ucts, cement, power, chemical, sugar,
In the large-cap space, some fund evated level of redemption pressure
metals and mining.
managers bought select names like Si- from lump sum investors, particularly
"The commodity market has always
emens, HCL Tech and HUL. from high networth individuals (HNIs)
been one of the most attractive invest-
who booked profits as benchmark in-
ment asset classes. The demand for
dices traded near record high levels.
Robust inflows take SIP commodity inputs, categorized as hard
SIP-linked funds recorded an inflow of
share of MF assets to and soft commodities, generally re-
Rs 2.6 lakh crore over the past two
mains high as they fuel the economic
record in November years. The monthly SIP book reached
growth of the country. Investors look-
The share of mutual funds (MF) linked a new high of Rs 13,306 crore in No- ing for commodity exposure in their
to systematic investment plan (SIP) vember. According to industry esti- portfolio can consider ICICI Prudential
category in the total MF assets under mates, about 90% of the SIP linked Nifty Commodities ETF," said Chintan
management (AUM) reached a record funds are deployed in equity funds. A Haria, Head Product Development &
17% in November 2022, the data from sustained inflow catapulted equity Strategy, ICICI Prudential AMC.

14 | 2023 | JANUARY | BANKING FINANCE