Mutual Funds Investment Strategy: Nifty ended the first month of financial year 2025, April, with gains. In April, on monthly basis, Nifty rose by 1.2 percent or 278 points and closed at the level of 22605. During this period the index made a record high of 22,783. The index closed stronger for the third consecutive month. However, there were huge fluctuations in the index in April and the difference between peak and low level was more than 1000 points. The first phase of general elections started on 19th April and since then the market is sometimes going up and sometimes going down. At present, in the election environment, mutual funds have made changes in their stock strategy, about which brokerage house Motilal Oswal has released a report.
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Investment continues in mutual funds
Investors continued to invest their money in mutual funds in April. Inflow through SIP reached a new high of Rs 20370 crore in April 2024. There has been a growth of 5.7 percent on monthly basis and 48.4 percent growth on annual basis. Equity assets under management of domestic mutual funds increased by 5.3 percent on monthly basis in April to Rs 27 lakh crore. Sales of equity schemes increased by 10.6 percent on monthly basis during this period to Rs 65400 crore. The speed of redemption also increased to Rs 40000 crore. April 2024 saw an inflow of $530 crore from DIIs. Whereas FIIs made an outflow of 110 crore dollars during this period.
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In which sector investment increased or decreased
In April 2024, mutual funds increased allocation in some sectors and reduced it in others. Sectors where allocation increased on a monthly basis include private banks, metal, telecom, utilities, consumer durables, and real estate. Whereas the weightage in Technology, Healthcare, Oil and Gas, Consumer, Retail, Cement, Insurance and Textile decreased slightly.
In April 2024, the weightage of mutual funds in private banks increased by 30 bp on monthly basis and decreased by 180 bp on annual basis to 17.2%. In metals, it has increased to 31 month high of 2.7% (+30bp MoM, +70bp YoY). Weightage in technology has come down to 50 month low of 8% (-70bp MoM, -120bp YoY). Whereas the weightage in healthcare has fallen by 30 bp on monthly basis to 7.1%.
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Top 10 Buy (mutual funds shopping list)
HDFC Bank
Axis Bank
ICICI Bank
SBI
Bharti Airtel
NTPC
Kotak Bank
Bharat Electronics
Hindalco
power grid
Top 10 Sell
L&T
HCL Tech
Bajaj Finance
Infosys
Sun Pharma
Persistent Systems
Cipla
Sona BLW
TCS
Titan Company
