Markets

MF assets improve marginally to ₹24.5-lakh cr in July

?Suresh P Iyengar Mumbai | Updated on August 08, 2019 Published on August 08, 2019

Log in an overall monthly inflow of ₹87,088 crore

The assets under management (AUM) of the mutual fund industry was up a marginal 1 per cent in July at ₹24.53-lakh crore against ₹24.25-lakh crore logged in June with better inflow into liquid and equity schemes.

The industry logged an overall inflow of ₹87,088 crore last month, against an outflow of ₹1.59-lakh crore in June, according to data released by the Association of Mutual Funds in India (AMFI) on Thursday.

Reflecting the bearish trend in the stock market, the AUM of equity schemes was down 5 per cent at ₹6.84-lakh crore, against ₹7.23 lakh crore in June. This is despite equity-oriented schemes witnessing an inflow of ₹8,112 crore (₹7,663 crore).

Retail AUM was down 4 per cent at ₹10.7-lakh crore (₹11.16-lakh crore) largely due to mark-to-market loss in equity market. The benchmark Sensex was down 5 per cent in July.

Similarly, the AUM of systematic investment plans (SIP) was also down 4 per cent at ₹2.68-lakh crore (₹2.81-lakh crore) despite inflows through SIPs increasing to a three-year high of ₹8,367 crore in July against ₹8,122 crore logged in the previous month.

Inflows into multi-cap schemes dipped to ₹327 crore, against ₹1,835 crore as the flow into mid-cap funds jumped sharply to ₹1,394 crore (₹845 crore).

Among debt-oriented schemes, liquid funds saw an inflow of ₹44,441 crore, against an outflow of ₹1.52-lakh crore in June. This boosted the AUM of debt schemes to ₹10.72-lakh crore in July against ₹10-lakh crore logged in June.

Turnaround hopes

With fear of more defaults, outflow from credit risk funds increased to ₹3,411 crore (₹2,695 crore). Banking and PSU schemes registered an inflow of ₹5,913 crore (₹799 crore) on expectation of a turnaround in banking sector fortunes.

NS Venkatesh, CEO, AMFI, said the mutual fund industry has managed to hold fort despite the bearish sentiment in the equity market and the rise in inflow through the SIP route is a reflection of retail investors’ faith in mutual funds.

Published on August 08, 2019
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