AUM of mutual funds up 4% at ₹25.47-lakh crore as liquid funds gain traction; equity schemes take a dip

Suresh P Iyengar Mumbai | Updated on September 09, 2019 Published on September 09, 2019

The assets under management (AUM) of mutual funds increased 4 per cent in August to ₹25.47-lakh crore from ₹24.53-lakh crore logged in July, largely due to better inflows into liquid and debt schemes.

Inflows into liquid and debt schemes stood at ₹91,127 crore (₹61,846 crore) with liquid funds registering inflow of ₹79,428 crore (₹45,441 crore), even as outflow from credit risk funds moderated to ₹2,270 crore against outflow of ₹3,411 crore in July, according to data released by the Association of Mutual Funds in India on (AMFI) Monday.

Investments in equity schemes increased 13 per cent to ₹9,152 crore, against ₹8,113 crore registered in July, as investors chased large-cap funds which saw inflow of ₹2,583 crore (₹1,915 crore), while inflows into multi-cap funds stood at ₹1,581 crore (₹327 crore).

However, funds mobilised last month through equity schemes dipped to ₹16,902 crore, against ₹20,319 crore in July.

NS Venkatesh, CEO, AMFI said despite the uncertainty, retail investors’ interest in equity mutual funds has been steady for the fourth consecutive month, displaying the maturity level of investors.

SIP inflows

On outlook for next month, he said systematic investment plans (SIPs) would continue to witness robust inflows, and on debt side, liquid funds may see volatility owing to the quarter-end phenomenon.

Retail AUM was up a tad at ₹10.71-lakh crore, against ₹10.70-lakh crore recorded in July.

Investments through SIPs fell marginally at ₹8,231 crore in August, against ₹8,324 crore, while the AUM through SIPs increased to ₹2.71-lakh crore from ₹2.69-lakh crore. The number of SIP accounts increased to 2.81 crore from 2.78 crore.

Slowdown in redemption

Vishal Kapoor, CEO, IDFC Asset Management Company, said redemption in equity schemes has slowed down by 33 per cent month-on-month, which is a good sign for the market. Overnight funds continue to gain traction with their average AUM increasing to ₹20,700 crore in August, up from ₹11,500 crore in April. On the broader debt side, there has been continued flow towards the short end of the curve in categories such as corporate bonds and banking and PSU debt, he said.

Published on September 09, 2019

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