AUM Accretion January 2025 – Net flows versus Price Spike

14 Feb 2025 , 09:53 AM

AUM ACCRETION – JANUARY 2025 MACRO STORY

What was the quality of the AUM shift between December 2024 and January 2025? In this period; the AUM of open-ended funds went up from ₹66.66 Trillion to ₹66.99 Trillion. That is an actual AUM accretion of ₹32,509 Crore on MOM basis. However, in January 2025, open-ended funds had seen massive net inflows of ₹1,87,606 Crore. This effectively means the negative impact of price depletion on AUM in January 2025 was ₹(1,55,097) Crore. It was a month when debt flows were strong, but equity depletion almost wiped it out.

AUM  ACCRETION OF ACTIVE DEBT FUNDS – JANUARY 2025

In January 2025, debt fund saw strong inflows and price appreciation too.

Active Debt Market Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Gilt Fund with 10-Y duration	-22.77	4,850.62	18.56	41.33	222.72%
Dynamic Bond Fund	-114.97	35,388.06	111.17	226.14	203.42%
Banking and PSU Fund	-113.80	78,680.72	383.98	497.78	129.64%
Corporate Bond Fund	-217.38	1,72,234.60	991.58	1,208.96	121.92%
Low Duration Fund	665.45	1,15,582.09	1,322.31	656.86	49.68%
Ultra Short Duration Fund	1,047.67	1,11,402.71	1,685.31	637.64	37.84%
Long Duration Fund	201.39	20,556.07	314.53	113.14	35.97%
Money Market Fund	21,915.53	2,53,709.46	23,398.49	1,482.96	6.34%
Liquid Fund	91,592.92	5,59,392.70	94,721.17	3,128.25	3.30%
Overnight Fund	18,936.52	93,682.26	19,500.33	563.81	2.89%
Gilt Fund	-1,359.66	41,124.11	-1,109.63	250.03	-22.53%
Floater Fund	-1,129.39	50,584.52	-832.50	296.89	-35.66%
Short Duration Fund	-2,066.19	1,11,948.76	-1,318.01	748.18	-56.77%
Medium to Long Duration Fund	-168.81	11,598.51	-91.71	77.09	-84.06%
Medium Duration Fund	-220.20	24,978.73	-112.44	107.76	-95.84%
Credit Risk Fund	-293.74	20,601.21	-145.29	148.45	-102.18%
Active Debt Funds	1,28,652.58	17,06,315.14	1,38,837.86	10,185.28	7.34%

Data source: AMFI (absolute figures are ₹ in Crore)

The 3 categories at the centre; money market funds, liquid funds, and overnight funds, saw the least price impact, which is understandable as they are treasury products. Overall, net AUM accretion of active debt mutual funds in January 2025 stood at ₹1,38,838 Crore. This was composed of ₹1,28,653 Crore of net inflows, while the price impact made a positive contribution of ₹10,185 Crore. Bulk of the price appreciation effect came long-duration Gilt and Dynamic Bond Funds that had moved up the duration curve expecting RBI rate cut.

AUM  ACCRETION OF ACTIVE EQUITY FUNDS – JANUARY 2025

In January 2025, equity fund saw strong inflows but price depletion was intense.

Active Equity Market Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Sectoral/Thematic Funds	9,016.60	4,60,920.60	-11,777.48	-20,794.07	176.56%
Large Cap Fund	3,063.33	3,54,365.83	-4,306.05	-7,369.38	171.14%
Flexi Cap Fund	5,697.58	4,29,128.22	-9,004.17	-14,701.75	163.28%
Multi Cap Fund	3,567.38	1,73,765.92	-7,032.72	-10,600.11	150.73%
Dividend Yield Fund	214.64	31,049.10	-505.32	-719.96	142.48%
Large & Mid Cap Fund	4,122.95	2,60,828.36	-9,946.13	-14,069.09	141.45%
Value Fund/Contra Fund	1,556.45	1,83,299.91	-4,990.48	-6,546.93	131.19%
Small Cap Fund	5,720.87	3,05,580.17	-23,665.14	-29,386.01	124.17%
Focused Fund	783.07	1,42,450.23	-3,837.32	-4,620.38	120.41%
Mid Cap Fund	5,147.87	3,73,184.22	-26,599.95	-31,747.82	119.35%
ELSS	797.03	2,32,191.65	-9,119.64	-9,916.67	108.74%
Active Equity Funds	39,687.78	29,46,764.20	-1,10,784.39	-1,50,472.17	135.82%

Data source: AMFI (absolute figures are ₹ in Crore)

The low variance in the Price Move Dominance column indicates that the impact of price depletion was uniform across equity funds. Overall, the net AUM depletion of active equity funds in January 2025 stood at ₹(1,10,784) Crore. This was composed of ₹39,688 Crore of net inflows into equity funds, but a negative price impact of ₹(1,50,472) Crore. Bulk of the price depletion effect came from thematic, large cap and flexi-cap funds.

AUM  ACCRETION IN HYBRID FUNDS – JANUARY 2025

In January 2025, hybrid fund saw strong inflows but offset by price depletion.

Hybrid and Solution Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Dynamic Asset Allocation/BAF	1,512.06	2,82,864.09	-2,757.91	-4,269.96	154.83%
Children’s Fund	140.95	22,063.60	-664.48	-805.42	121.21%
Balanced Hybrid Fund	633.00	2,18,007.38	-3,184.91	-3,817.91	119.88%
Retirement Fund	102.12	29,195.89	-932.11	-1,034.23	110.96%
Conservative Hybrid Fund	-194.22	28,172.00	-288.12	-93.90	32.59%
Arbitrage Fund	4,291.74	2,00,304.74	4,241.09	-50.66	-1.19%
Equity Savings Fund	402.09	42,161.42	284.69	-117.41	-41.24%
Multi Asset Allocation Fund	2,122.85	1,03,811.58	490.67	-1,632.18	-332.64%
Hybrid Funds	9,010.59	9,26,580.72	-2,811.08	-11,821.66	420.54%

Data source: AMFI (absolute figures are ₹ in Crore)

The impact of price dominance has been least on Arbitrage funds, which is logical due to its debt-like qualities. Overall, the net AUM depletion of hybrid funds in January 2025 was marginal at ₹(2,811) Crore. This was composed of ₹9,011 Crore of net inflows into hybrid funds (thanks to Arbitrage Funds), and a steep negative price impact of ₹(11,822) Crore. Bulk of price depletion came from Children’s Fund and BAFs, due to high equity allocation.

AUM  ACCRETION IN PASSIVE FUNDS – JANUARY 2025

In January 2025, passive funds also saw strong inflows, with marginal price depletion.

Index and Passive Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Other ETFs	1,171.69	7,62,902.74	-2,472.46	-3,644.15	147.39%
International FOFs	77.53	28,065.07	1,452.29	1,374.76	94.66%
GOLD ETF	3,751.42	51,839.39	7,243.79	3,492.37	48.21%
Index Funds	5,254.66	2,76,120.48	1,043.28	-4,211.37	-403.67%
Passive Funds	10,255.29	11,18,927.68	7,266.90	-2,988.39	-41.12%

Data source: AMFI (absolute figures are ₹ in Crore)

Here is what we read from the AUM shift of passive equity funds in January 2025. Overall, the net AUM accretion of passive funds in January 2025 stood at ₹7,267) Crore. This was composed of ₹10,255 Crore of net inflows into passive funds (thanks to index funds), and a negative price impact of ₹(2,988) Crore. Bulk of the price depletion effect came from index ETFs and index funds; while gold funds were relatively immune.