According to the Association of Mutual Funds in India (AMFI), Assets Under Management (AUM) of the Indian mutual fund industry came in at Rs23.16 lakh cr in February 2019 down 0.89% MoM as against Rs23.37 lakh cr in January 2019. The decline reflects outflows in Liquid/Money Market and Income category in the month under review as against inflows in the previous month. However, it grew 4.33% yoy.
AUM under the Equity (including Equity Linked Savings Schemes or ELSS), Balanced, and other ETFs came in at Rs10.59 lakh cr in February 2019, up 0.26% MoM and 3.75% yoy.
Outflows in Liquid/Money Market category led to net outflows in February 2019
The mutual fund industry saw net outflows of Rs20,083cr in February 2019 as against net inflows of Rs65,439cr in January 2019. Net outflows from the Liquid/Money Market category came in at Rs24,509cr as against net inflows of Rs58,637cr in January 2019. The downside reflects political uncertainty and liquidity tightness in the Indian debt market, according to AMFI.
Income category witnessed net outflows of Rs4,214cr in February 2019 (highest since November 2018) as against net inflows of Rs2,080cr in January 2019, likely on worries over downgrades and liquidity issues in the Indian market. The category has seen outflows consistently for the past eight months prior to January 2019. Inflows in Equity funds (including ELSS) fell MoM for the fourth consecutive month by 16.82% to Rs5,122cr. This marked the lowest inflows since January 2017. Meanwhile, net outflows in the Balanced category came in at Rs1,077cr as against net outflows of Rs952cr in January 2019. This marked the second consecutive month of net outflows for the category amid volatile capital markets due to uncertainty over the upcoming elections and geopolitical tensions.
Net inflows in the Other ETF category came in at Rs5,234cr in February 2019 as against net inflows of Rs721cr in January 2019. The increase reflects launch of third tranche of Bharat 22 ETF by the government in February, as per AMFI.
8.23 lakh new folios added in February 2019, Equity category bags 5.33 lakh
According to data from the Securities and Exchange Board of India (SEBI), the total folio count in February 2019 grew 1.02% MoM and 17.01% yoy to 8.18cr. A total of 8.23 lakh new folios were added during the month under review. While 5.33 lakh new folios were added in the Equity (including ELSS) category, 1.45 lakh new folios were added in Others ETFs category. Income category and Liquid/Money market category added 0.90 lakh and 0.45 lakh folios, respectively.
-With inputs from ICRA