Industry AAUM steady at Rs25.81 lakh cr in July 2019

The mutual fund industry has added about 9.54 lakh SIP accounts each month on an average in FY20.

Aug 21, 2019 05:08 IST India Infoline News Service

Mutual Funds Analysis
According to the Association of Mutual Funds in India (AMFI), the mutual fund industry’s total Average Assets Under Management (AAUM) came in steady at Rs25.81 lakh cr in July 2019 as against June 2019.

The country’s smaller towns or B30 (beyond top 30 cities) accounted for 15.49% of the total industry AAUM in July 2019, marginally down from 15.50% in June 2019 and up from 14.23% in July 2018. Non-Associate Distributors contributed 61.36% and 47.63% of the AAUM in B30 and T30 cities, respectively. Direct contributed 19.58% and 46.32% in B30 and T30 cities, respectively. Associate Distributors contributed 19.06% and 6.04% in B30 and T30 cities, respectively.

State-wise, AAUM from Maharashtra and New Delhi came in at approximately Rs10.73 lakh cr and Rs2.28 lakh cr, respectively, in the month under review. Despite marginal fall on an MoM basis in AAUM contribution, Maharashtra continues to be the biggest contributor (41.55%) in July 2019 followed by New Delhi that remains the second-largest contributor (8.83%). With a monthly increase in contribution, third and fourth positions were clinched by Karnataka (7.21%) and Gujarat (7.08%). West Bengal continued to remain at the fifth position with a contribution of 5.10%.

Out of 37 states and Union territories, Maharashtra, New Delhi, Karnataka and Gujarat contributed 26.11%, 36.43%, 38.66% and 40.62%, respectively, to Equity schemes in July 2019. Meanwhile, contribution to Liquid schemes from Maharashtra, New Delhi, Karnataka and Gujarat came in at 31.46%, 25.07%, 22.77% and 17.94%, respectively.

Equity-oriented schemes account for 41.76% of AAUM in July
Out of total AAUM, the proportionate share of Equity-oriented schemes came in at 41.76% of the industry assets in the month under review as against 42.31% in the previous month. Meanwhile, for Liquid and Debt oriented schemes put together, it came in at 52.38% in July as against 51.91% in the previous month. Exchange-Traded Funds (ETFs) and Fund of Funds (FoFs) share stood at 5.86% in the month under review.

Contribution from Individual and Institutional investors at 53.71% and 46.29% on July 2019
According to AMFI, Individual investors (including high net worth individuals) held 53.71% of the industry AAUM in July 2019 as against 54.34% in June 2019. Institutional investors held the balance 46.29%, out of which 89.74% is held by corporates and rest by banks and FIIs.

SIP contribution up 2.49% MoM and 10.19% yoy
After witnessing monthly declines over the past two months, the total contribution of Systematic Investment Plans (SIPs) to mutual funds grew 2.49% MoM to Rs8,324cr in July 2019, according to AMFI. Also, it grew 10.19% YoY and nearly 68% in the 2-year period. It has remained above the Rs8,000cr mark for the eighth consecutive month. The mutual fund industry has added about 9.54 lakh SIP accounts each month on an average in FY20.

-Inputs from ICRA

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