Markets

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

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.