Despite benchmark indices remaining volatile in January and closing with mild losses ahead of Budget 2022, fund managers preferred to buy the dip, and retail investors reaffirmed their faith in Systematic Investment Plans (SIPs).

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Equity mutual funds recorded a net sum of Rs 14,888 crore in January, making it the 11th consecutive monthly net inflow.

However, the data from the Association of Mutual Funds in India (AMFI) suggested that this was much lower than the net inflow witnessed in December which was Rs 25,077 crore.

Also Read: Equity mutual funds record inflow of Rs 14,888 cr in January

The equity schemes have been witnessing net inflow since March 2021 and the segment has received a net inflow of over Rs 1 lakh crore during this period highlighting the positive sentiments among investors, said a PTI report.

Before this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021 losing Rs 46,791 crore.

“The Indian equity markets have been witnessing a correction in tandem with the Global markets. Factors like the possibility of a FED rate hike, a slowdown in China and the growing concern between Ukraine and Russia have led to decline in the global equity markets,” Kavitha Krishnan, Senior Analyst - Manager Research, Morningstar India, said.

“Most of the investors continued to find the correction in the market as good entry point, which is evidenced by the quantum of fund mobilised, which stood at INR 33234.21 crores in January 2022 as compared to INR 43,579.50 crores in December,” added Krishnan.

The average under management (AUM) of the industry rose to Rs 38.88 lakh crore at January-end from Rs 37.72 lakh crore at December-end.

Monthly SIP Contribution collected at Rs 11,516.62 crores is at an all-time high. Dec 2021 registered 11,305.34 crores, AMFI data showed.

SIP AUM at the end of January 2022 stood at Rs 5.7 lakh cr, and the number of SIP accounts stood all-time high in January 2022 at 5,04,84,467 compared to 4,90,78,547 in December 2021.

“Fund investor confidence in the India Growth story, as reflected through continued all time higher quantum of monthly SIP flows and with economy expected to rise at projected 9.2 per cent, has overshadowed the uncertainties arising out of external factors like Fed Rate hike or FII outflows,” N S Venkatesh, Chief Executive, AMFI, said.

We have collated a list of stocks from the ICICIdirect report in which fund managers bought and sold the most across large, mid, and smallcap space. Socks above Rs 50 crore holding were considered:

Largecap:

Fund managers across AMC raised stakes in stocks like Havells India, Vedanta, InterGlobe Aviation, Apollo Hospitals, Tech Mahindra, Tata Power, IndusInd Bank, and Dabur India.  

Selling was seen in stocks like Indus Tower, HDFC AMC, SAIL, IRCTC, Zomato, JSW Steel, and Pidilite Industries etc.

Midcap:

Fund managers across AMC raised stakes in stocks like Bandhan Bank, Tata Communications, Aditya Birla Capital, Tata Chemicals, PNB, LIC Housing Finance, etc.

Selling was seen in stocks like GMR Infrastructure, Bank of India, Colgate Palmolive India, Laurus Labs, ICICI Securities, and NMDC, etc. among others.

Smallcap:

Fund managers across AMC raised stakes in stocks like Rain Industries, Hindustan Copper, Indiabulls Housing Finance, IDFC, and NBCC India.

Selling was seen in stocks like CE Info Systems, PTC India, Granules India, Oriental Hotels, Latent View, Hathway Cable etc.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)