Equity MF flows more than double in September as investors buy the dip – ICICI Bank is the MF darling

Equity MF flows more than double in September as investors buy the dip – ICICI Bank is the MF darling
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  • Equity mutual fund flows more than doubled in September to ₹14,100 crore from ₹6,100 crore in August.
  • Retail investors took advantage of the correction during the month where the benchmark Nifty50 index fell 4%.
  • A similar trend was also observed by analysts between November 2021 and March 2022 when investors took advantage of market corrections, according to a report by ICICI Direct Research.
Indian investors are getting smarter after witnessing an unprecedented post-Covid bull run followed by high volatility in 2022. According to mutual fund flows, Indian investors are buying the dips and displaying investment maturity.

A report by ICICI Direct Research says that retail investors used the buying opportunity in September when the benchmark Nifty50 index fell nearly 4%. Inflows in equity mutual funds more than doubled in September to ₹14,100 crore, from ₹6,100 crore in August.

“Retail investors have consistently shown investment maturity over the last few years, where inflows have been higher at lower levels and lower at higher market levels. During September 2022, equity markets saw a sharp fall, which investors utilised as an opportunity to put in higher amounts,” the ICICI Direct Research report said.

Smarter investors

Between April and October 2021, when the markets were on a bull run and gained nearly 20%, domestic investors ploughed in ₹34,000 crore (ex-NFO). However, when markets witnessed a 3% correction between November 2021 and March 2022, the flows surged to ₹77,000 crore.


Similarly, the more-than-doubling of equity MF inflows to ₹14,100 crore when the Nifty50 corrected 4% in September suggests that investors are embracing the ‘buy the dip’ philosophy.

Apart from this, strong domestic flows have largely countered the sell-off by foreign institutional investors (FII) – while FIIs have pulled out ₹2.95 lakh crore in 2022 so far, domestic investors have invested over ₹2.6 lakh crore.

These were the favourite MF stocks in September

Stocks Holding value (in ₹crore)
ICICI Bank1.44 lakh
HDFC Bank1.16 lakh
Axis Bank52,005
Bharti Airtel47,784

Source: Systematix | Large-cap segment only

While large cap companies like Bharti Airtel, ITC and ICICI Bank were among favourites of mutual fund companies with high exposure, the month of September also saw some profit booking or selling of these stocks.

Mutual funds bought and sold these stocks in September

CompanyShares boughtCompanyShares sold
Bharat Electronics 3.58 croreTata Steel10.8 crore
NTPC2.26 crore Indian Oil3.53 crore
ONGC2.20 croreGAIL (India)3.37 crore
Power Grid2.14 crore Vedanta2.61 crore
Infosys1.45 croreTata Motors1.73 crore
HDFC Life1.14 crore Bharti Airtel1.64 crore
Bandhan Bank1.09 croreITC 1.40 crore
Axis Bank1.09 crore ICICI Bank 1.23 crore
DLF95.89 lakhJSW Steel39.32 lakh
Kotak Mahindra Bank85.18 lakhLIC24.37 lakh

Source: Phillip Capital | Large-cap segment only


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