AUM Accretion May 2025 – Net flows versus Price Spike

12 Jun 2025 , 09:26 AM

AUM ACCRETION – MAY 2025 MACRO STORY

What was the quality of the AUM shift between April 2025 and May 2025? In this period; the AUM of open-ended funds bounced from ₹69.74 Trillion to ₹71.94 Trillion, assisted by tepid inflows but robust value accretion. That is AUM accretion of ₹2,19,921 Crore on MOM basis. In May 2025, open-ended funds saw limited net inflows of ₹29,573 Crore, led by active equity and hybrid funds. This effectively means the positive impact of price accretion on AUM in May 2025 was a whopping ₹1,90,348 Crore. Active equity funds, hybrid funds, and passive funds cornered bulk of the equity price accretion benefits in May 2025.

AUM  ACCRETION OF ACTIVE DEBT FUNDS – MAY 2025

In May 2025, debt funds saw negative flows, and consolation came from price accretion.

Active Debt Market Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Floater Fund	-254.06	51,205.42	225.67	479.73	212.58%
Medium Duration Fund	-47.11	25,365.58	201.87	248.97	123.34%
Medium to Long Duration Fund	44.13	11,999.02	139.97	95.84	68.47%
Banking and PSU Fund	484.13	81,949.60	1,351.74	867.61	64.18%
Gilt Fund – 10-Y Duration	41.54	5,101.48	94.59	53.04	56.08%
Short Duration Fund	1,789.79	1,22,759.56	3,051.02	1,261.23	41.34%
Dynamic Bond Fund	566.74	37,087.95	856.66	289.92	33.84%
Ultra Short Duration Fund	1,847.57	1,29,110.00	2,673.29	825.72	30.89%
Low Duration Fund	3,133.60	1,27,552.76	4,110.42	976.82	23.76%
Corporate Bond Fund	11,983.35	1,95,987.39	14,033.62	2,050.27	14.61%
Money Market Fund	11,223.08	2,79,475.78	13,085.85	1,862.77	14.23%
Long Duration Fund	466.13	21,415.25	541.36	75.22	13.90%
Gilt Fund	1,385.93	43,000.14	1,571.48	185.55	11.81%
Overnight Fund	-8,120.03	79,184.26	-7,649.56	470.47	-6.15%
Liquid Fund	-40,205.36	5,22,714.52	-37,109.66	3,095.70	-8.34%
Credit Risk Fund	-247.93	20,437.00	-48.35	199.58	-412.75%
Active Debt Funds	-15,908.48	17,54,345.70	-2,870.04	13,038.45	-454.30%

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

The 4 categories at the bottom; Liquid Funds, Overnight Funds, Gilt Funds, and Long Duration Funds; saw least price impact. Price impact was more intense in Credit Risk Funds, Floater Funds, and Medium Duration Funds. Overall, net AUM depletion of active debt mutual funds in May 2025 stood at ₹(2,870) Crore. This was composed of ₹(15,908) Crore of net outflows, partially offset by positive price contribution of ₹13,038 Crore. The 3 rate cuts of 100 bps overall and the 100 bps CRR cut have resulted in strong price gains on debt.

AUM  ACCRETION OF ACTIVE EQUITY FUNDS – MAY 2025

May 2025 equity fund flows were modest, but price accretion did the magic.

Active Equity Market Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
ELSS	-678.11	2,46,293.05	7,242.43	7,920.54	109.36%
Dividend Yield Fund	-20.82	32,177.14	844.23	865.05	102.47%
Value Fund/Contra Fund	-92.28	1,96,339.39	5,482.79	5,575.07	101.68%
Sectoral/Thematic Funds	2,052.48	4,92,403.81	22,064.76	20,012.28	90.70%
Small Cap Fund	3,214.21	3,36,005.21	28,837.10	25,622.89	88.85%
Mid Cap Fund	2,808.68	4,08,092.68	25,008.97	22,200.29	88.77%
Large Cap Fund	1,250.47	3,83,666.59	9,146.88	7,896.40	86.33%
Focused Fund	947.18	1,55,870.44	5,647.39	4,700.21	83.23%
Large & Mid Cap Fund	2,690.69	2,87,392.50	14,134.08	11,443.39	80.96%
Flexi Cap Fund	3,841.32	4,71,974.48	17,306.57	13,465.25	77.80%
Multi Cap Fund	2,999.29	1,95,159.76	12,026.95	9,027.67	75.06%
Active Equity Funds	19,013.12	32,05,375.05	1,47,742.16	1,28,729.04	87.13%

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

The low variance in the Price Dominance column indicates that impact of price accretion was largely uniform across categories. Overall, net AUM accretion of active equity funds in May 2025 stood at ₹1,47,742 Crore. This comprised of ₹19,013 Crore of net inflows into equity funds, and positive price impact of ₹1,28,729 Crore. Bulk of the positive price effect came from ELSS funds, dividend yield funds, Value Funds, and sectoral funds. The top 3 actually saw negative flows, and were entirely about price appreciation.

AUM  ACCRETION IN HYBRID FUNDS – MAY 2025

In May 2025, hybrid fund saw robust inflows, with equal support from price accretion.

Hybrid and Solution Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
Retirement Fund	52.91	31,006.98	1,010.77	957.86	94.77%
Aggressive Hybrid Fund	341.39	2,31,900.98	5,892.94	5,551.55	94.21%
Children’s Fund	124.42	23,523.85	837.75	713.33	85.15%
Dynamic Asset Allocation/BAF	1,136.12	2,99,506.76	6,956.81	5,820.69	83.67%
Conservative Hybrid Fund	89.31	28,825.35	465.94	376.63	80.83%
Equity Savings Fund	569.46	43,012.57	1,131.63	562.16	49.68%
Multi Asset Allocation Fund	2,926.80	1,18,153.73	5,144.32	2,217.52	43.11%
Arbitrage Fund	15,701.97	2,33,962.92	20,949.34	5,247.37	25.05%
Hybrid Allocation Funds	20,942.38	10,09,893.13	42,389.50	21,447.12	50.60%

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

The impact of price dominance was the maximum in Retirement Funds, Aggressive Hybrid Funds, and Children’s Funds; due to a combination of tepid flows and strong equity exposure. In absolute terms, BAFs and Arbitrage Funds also contributed to overall price accretion in May 2025. Overall, net AUM of hybrid funds in May 2025 saw accretion of ₹42,390 Crore. This comprised of ₹20,943 Crore net inflows into hybrid funds, supported by price accretion of ₹21,447 Crore. It was the equity price effect that played a big role.

AUM  ACCRETION IN PASSIVE FUNDS – MAY 2025

In May 2025, passive funds saw limited traction in flows but very strong traction in terms of price accretion.

Index and Passive Funds	Net Inflow in the Fund	AUM Closing Value	AUM Accretion	Price Accretion	Price Move Dominance
FOFs investing overseas	42.83	27,014.15	2,177.98	2,135.15	98.03%
Index Funds	1,104.42	3,00,811.48	8,605.58	7,501.16	87.17%
Other ETFs	4,086.81	8,33,965.85	20,845.20	16,758.38	80.39%
GOLD ETF	291.91	62,452.94	1,030.74	738.83	71.68%
Passive Funds	5,525.98	12,24,244.42	32,659.49	27,133.52	83.08%

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

Here is what we read from the AUM shift of passive equity funds in May 2025. Overall, the net AUM accretion of passive funds in May 2025 stood at ₹32,660 Crore. This comprised of ₹5,526 Crore of net inflows into passive funds, and positive price impact of ₹27,134 Crore. Bulk of the price accretion in absolute terms came from index ETFs and index funds in that order. The variance between various categories was quite low in May 2025.