Equity fund inflows dip; Mutual Fund AUM at record high in August 2021

At Rs36.59 lakh crore, the Net AUMs for the Indian Mutual Fund Industry breached Rs36 lakh crore landmark for the first time ever.

Sep 09, 2021 04:09 IST India Infoline News Service

According to the AMFI data released on Wednesday, investors poured in a net Rs8,666.68cr for August 2021 in equity mutual fund schemes as against the previous month’s deposit of Rs22,583.52cr.

Equity mutual funds saw a total inflow of Rs33,668.76cr and an outflow of Rs25,002.08cr. At Rs36.59 lakh crore, the Net AUMs for the Indian Mutual Fund Industry breached the Rs36 lakh crore landmark for the first time ever.

At 10.85 crore folios, the MF industry has added a whopping over 80 lakh folios for the first time ever, within a short period of the last 5 months in FY22. To put into perspective, this meteoric rise in the first 5 months of FY22, the MF industry added just 74 lakh folios in FY21, between April 2020 to March 2021.

Folios under retail schemes at 8.95 crores is also at an all-time high, with massive 78 lakh retail folios being added in the first five months of FY22 versus 18 lakh Folios in FY21.

Monthly SIP Contribution at Rs9,923.15cr is at an all-time high and SIP AUMs at Rs5.26 lakh crores, is now almost a third of Total Retail AUMs of Rs17.15 lakh crore.

New SIPs registered during August 2021 at 24.92 lakhs is the highest ever registration and has led to MF Industry reporting a record high 4.32 crore SIP Accounts. In August 2020, SIP Accounts stood at 3.30 crores. So in the past one-year SIP accounts have risen by over 1.02 crores.

Since April 2021 alone, 53 lakh SIP accounts have been added, taking the SIP Accounts to 4.32 crores as at August 2021 at an all-time high.

Retail AUMs at an all-time high at Rs17.15 lakh crores, now forms 46.87% of Total Industry AUMs at Rs36.59 lakh cr.

Commenting on the August 2021 mutual fund data, Mr. N S Venkatesh, Chief Executive, AMFI said: “Overall positive flows in the open-ended MF schemes and market indices touching an all-time high, helped the Indian MF Industry Net AUMs to breach record INR 36 lakh crore milestone in August 2021.

Retail AUM at INR 17.15 lakh crores, almost half of Total Industry AUMs, SIP AUMs at record high INR 5.26 lakh crores, which now forms a third of Retail AUM, healthy rise in SIP Accounts at record 4.32 crores and monthly SIP contribution at an all-time high at INR 9,923.15 crores is reflective of established and rising retail preference towards mutual funds as a long-term wealth creation avenue.  

Continued robust month on month fund mobilization in Arbitrage and dynamic asset allocation schemes and affinity towards Thematic / Sectoral and diversified Flexicap schemes since the start of the new fiscal, FY22, including through SIPs has over-shadowed profit-booking during the last few months.”, Mr. Venkatesh said.

Mr. Kailash Kulkarni, Chief Executive, L&T Mutual Fund said, "Two important statistics (that often get missed out given the focus on AUM) are key to gauging the way forward for the mutual fund industry. The number of unique investors added in the last 5-6 months is almost similar to the unique investors added in the last two years, thus proving that the sector is deepening its penetration and reaching out actively to first-time investors. Secondly, the growth of SIPs, driven by digital platforms, reflect the rising participation and confidence of the retail investor."

Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Company said “August month saw continued flows in floating rate category in fixed income with net sales of nearly Rs. 10,000 crore. Anticipation of tighter liquidity conditions due to RBI announcement of additional VRRR could have prompted this move. Categories like medium to long term, gilt etc. also saw positive net sales as the steep yield curve offers cushion to any potential abrupt rise in rates.”

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