As on August 2023, basis AMFI data, 49% of Tata Mutual Fund investors park money in equity schemes in the state
Karnataka| September 28, 2023: The equity mutual funds have witnessed a net inflow of Rs.20,245.26 crore in August 2023, according to the Association of Mutual Funds in India (AMFI) data. The same AMFI data suggests within the equity mutual fund category, the small-cap category saw inflows of Rs 4,264.82 crore while sectoral/thematic funds saw inflows of Rs 4,805.81 crore and multi-cap category witnessed Rs 3,422.14 crore inflows. Overall, the mutual fund industry in India reported total assets under management (AUM) of Rs 46.63 lakh crore i.e. including the close-ended schemes as per the August AMFI data.
As the size of mutual funds (MF) assets grows in India, we find a pattern where a few states continue to prefer equity MF schemes over non- equity schemes. Investors in Karnataka for example have shown an inclination for equity mutual funds over non-equity. As of August 2023, 54% of the investments from the state of Karnataka are parked in equity schemes while 38% is parked in debt & liquid schemes and 5% in balanced funds. Investors in Karnataka have parked almost Rs. 3,21,540.16 crore in mutual funds.
For Tata Mutual Fund, 49% of AUM comes from equity schemes, 38% from debt & liquid schemes and 14% from balanced schemes in Karnataka according to August AMFI data.
Within the equity category, there is inclination amongst the investors towards thematic funds such as Tata Housing Opportunities Fund which is an open-ended equity scheme following housing theme. It may be noted here that the Tata Housing Opportunities Fund falls under very high-risk category.
According to Tejas Gutka, Fund Manager, Tata Asset Management, “At Tata Asset Management, our focus is on the investment process and disciplined approach to investing. We adopt the Growth at Reasonable Price (GARP) approach to investing across our MF schemes including Tata Housing Opportunities Fund. The GARP approach allows us to bet on high quality shares and at the same time ensures that the quality shares are bought at reasonable price. We believe there are multiple opportunities at this point of time in the broad markets which can see strong growth as well as re-rating and we are trying to capture them in our Tata Housing Opportunities Fund. As the demand for housing increases, so does the demand for products that go into building a house.
For Tata Housing Opportunities Fund the aim is to build a portfolio by identifying entities within the list of basic industries (as per AMFI classification from time to time) under Housing theme that may have potential for meaningful growth, and which may have a sustainable competitive advantage.”