Chennai, While the total assets under management (AUM) of the Indian mutual fund industry declined by 4.2 per cent last month, it also saw changes in the sector and stock allocation of the funds, said broking company Motilal Oswal Financial Services Ltd.

In its report, Motilal Oswal said, the total AUM for the mutual fund industry declined for the second consecutive month to Rs 35.6 trillion last month - the lowest level since August 2021.

The decline was led by AUM for income (Rs 711 billion), equities (Rs 405 billion), liquid (Rs 219 billion), other exchange traded funds (Rs 115 billion).

The equity AUM for domestic mutual funds (including ELSS and index funds) decreased 2.9 per cent month-on-month (MoM) to Rs 13.8 trillion in June'22.

This was due to a decline in equity scheme sales. Further, market indices closed lower.

According to Motilal Oswal, the redemptions dipped 15.4 per cent MoM to Rs 127 billion - at a 25-month low. Consequently, net inflows declined marginally to Rs 228 billion last month from Rs 234 billion in May'22.

Be that as it may, the month saw notable changes in the sector and stock allocation of funds, Motilal Oswal said.

On a MoM basis, the weights of automobiles, oil & gas, consumer, healthcare, telecom, and government banks increased, while the weights of private banks, metals, non-banking finance companies (NBFC), cement, retail, utilities, textiles, insurance, and chemicals moderated, the report said.