November MF review: 8 of top 10 stocks financials; private banks' weightage rises again

Meanwhile, NBFCs' weight also hit a nine-month high of 8.9 percent, up for the second straight month in November. The sector now ranks third in the allocation of mutual funds – it was in the sixth position a month back, the MOSL report stated.

This trend was well witnessed in stock value changes as well. Eight of the top-10 stocks with the most MoM increase in value were from the financial space. These included HDFC Bank, ICICI Bank, SBI, Bajaj Finance, HDFC, Axis Bank, Kotak Mahindra Bank, and Cholamandalam Investment. L&T and ITC were the other 2 stocks with a maximum increase in value in November.

Meanwhile, stocks that saw a maximum decline in value MoM were Reliance Industries, PI Industries, IPCA Labs, Nestle India, Muthoot Finance, Cipla, Ambuja Cements, ACC, Colgate-Palmolive, and Tata Consumer.

Among other sectors, Oil & Gas weight reached nine-month lows of 7.6 percent, noted the report, down 90 bps MoM. As a result, the sector slipped to the sixth position in the allocation of mutual funds, it added.

Overall, on an MoM basis, the weights of private banks, NBFCs, PSU banks, capital goods, metals, and automobiles increased, while that of oil & gas, technology, consumer, healthcare, chemicals, telecom, cement, utilities, and retail spaces moderated.

The report also pointed out that in November 2020, all categories of equity schemes saw outflows. Large-cap schemes saw the highest outflows, followed by multi-cap schemes, mid-cap schemes, and small-cap schemes.

Despite the outflows, the MF industry’s AUM scaled new highs to reach Rs 30 lakh crore in November 2020, primarily led by an increase in AUM of equity funds, income funds and other ETF funds. However, the contribution from systematic investment plans (SIPs) slipped to Rs 7,300 crore – the lowest in 30 months.