According to the Association of Mutual Funds in India (AMFI), Assets Under Management (AUM) of the Indian mutual fund industry came in at Rs24.25 lakh cr in June 2019 as against Rs25.94 lakh cr in May 2019 and Rs22.86 lakh cr in June 2018.
AUM for the Income/Debt oriented category fell 12.92% MoM to Rs11.55 lakh cr. Meanwhile, AUM under the Equity category, including Equity Linked Savings Schemes or ELSS (including close-ended and interval schemes), came in at Rs7.58 lakh cr in June 2019, down 0.14% MoM but up 3.72% yoy.
Quarterly Average Assets Under Management (QAAUM) at the end of Q1FY20 was Rs25.51 lakh cr, as against Rs24.48 lakh cr at the end of Q4FY19.
Industry net outflows come in at Rs1.60 lakh cr
The mutual fund industry saw net outflows of Rs1.60 lakh cr in June 2019 as against net inflows of Rs76,990 cr in May 2019. The downside came as Income/Debt oriented schemes (including close-ended and interval schemes) saw net outflows of Rs1.74 lakh cr in June 2019 as against net inflows of Rs67,930cr in the previous month. The rise in net outflows likely reflects redemptions at quarter-end as corporates usually tend to redeem their investments to meet the advance tax payment deadline.
Under the Income/Debt oriented schemes, Liquid funds saw the maximum net outflows of Rs1.52 lakh cr in June 2019 as against net inflows of Rs68,583cr in May 2019. Fixed-term plans registered net outflows of Rs2,361cr as against net outflows of Rs1,798cr in May. Net inflows of Rs241.30cr in June 2019 as against net outflows of Rs105.74cr in May 2019 under Gilt funds (including Gilt Fund with 10-year constant duration) reflect Reserve Bank of India’s (RBI) stance to lower interest rates, according to AMFI.
The surge in inflows in Equity funds (including ELSS and close-ended schemes) came as a sigh of relief for the industry. After increasing 17.47% MoM in May 2019, inflows in Equity funds (including ELSS and close-ended schemes) surged 48% MoM to Rs7,367cr in June 2019. As per AMFI, political stability, lower inflation and RBI’s dovish stance have led to the upside.
ELSS continue to take the top position in terms of folios under Growth/Equity oriented schemes
According to AMFI, the number of folios under the Growth/Equity oriented schemes were highest in ELSS (14.44% of total) funds followed by Large-Cap Funds (10.58% of total) and Multi-Cap Fund (10.09% of total) in June 2019. Notably, the top five categories in terms of folios under Growth/Equity oriented schemes (ELSS, Large Cap Fund, Multi-Cap Fund, Sectoral/Thematic Funds and Mid Cap Fund) accounted for 50.10% of the industry folios. Meanwhile, under the Income/Debt oriented schemes, Liquid funds topped the chart in terms of no. of folios followed by Low Duration funds.