The equity Mutual Fund schemes have witnessed a continuous net outflow, primarily due to profit-booking, for eight consecutive months in February 2021, even as the equity AUMs have kept on increasing due to the rally in equity markets.

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According to the data released by the Association of Mutual Funds In India (AMFI), investors sold equity mutual funds worth Rs 4,534 crore in February. The number stood at Rs 9,253 crore in the previous month.

The Systematic investments plans or SIPs’ contribution also dipped to Rs 7,528 crore in February as compared to Rs 8,023 crore in January.

However, the Mutual Fund industry’s total Assets under Management (AUMs) increased 3.7 percent month-on-month (MoM) and reached an all-time high of over Rs 31.6 lakh crore at the end of February 2021.

February saw a notable change in the sector and stock allocation of funds. On a MoM basis, the weights of PSU Banks, Metals, Oil & Gas, Private Banks, Utilities, Cement, NBFC, Capital Goods, Real Estate, Retail, and Infrastructure increased, while weights of Technology, Healthcare, Consumer, Telecom, and Automobiles moderated, a Motilal Oswal report said.

Consumer’s weight has continued to moderate for the last months to a 34-month low of 7.1 percent. As a result, the sector slipped to the fifth position in MF allocation, making way for the Oil & Gas sector in the fourth position.

PSU Banks’ weight – after hitting an all-time low in September 2020 to 2 percent – saw positive interest among MFs, with an increase in weight for four consecutive months to 3.3 percent (+70 bps MoM, -40bp YoY).

IndusInd Bank, Tata Motors, DLF and United Spirits were among the top 10 buys in largecaps by the mutual funds.

Source: ICICI Direct

Top 10 sells in largecaps included Punjab National Bank, IDBI Bank, Adani Enterprises, Hindustan Zinc and Bandhan Bank.

Source: ICICI Direct

Here are the top 10 buys in Midcaps

Source: ICICI Direct

Here are the top 10 sells in Midcaps

Source: ICICI Direct

Among Smallcaps, MFs bought Poly Medicure, Esab India, Mayur Uniquoters, Indiabulls Housing Finance, among others the most.

Source: ICICI Direct

MFs sold Allcargo Logistics, Engineers India, Igarashi Motors India, KRBL and Route Mobile the most among Smallcaps.

Source: ICICI Direct

In terms of value increase MoM, five of the top 10 stocks were from Financials: SBI (Rs 119.4 billion), ICICI Bank (Rs 81.4 billion), HDFC Bank (Rs 70.4 billion), Axis Bank (Rs 31.9 billion), and Bajaj Finance (Rs 19.6 billion).

Source: Motilal Oswal

Stocks exhibited a maximum decline in value MoM: Bharti Airtel (Rs 24.8 billion), TCS (Rs 16.4 billion), HUL (Rs 10.1 billion), Dr Reddy’s Laboratories (Rs 9.3 billion), and Britannia Industries (Rs 7.3 billion).

Source: Motilal Oswal