Assets under management of the Indian mutual fund industry fell 2.83 per cent month-on-month to ₹22.60 lakh crore in May compared to April, according to the Association of Mutual Funds in India.

However, assets under management (AUM) witnessed growth of 18.68 per cent year-on-year. The industry witnessed total net outflow of ₹50,000 crore in May, against net inflow of ₹1,37,428 crore in April.

The main reason for this reversal can be attributed to the liquid/money market category, which registered an outflow of ₹46,724 crore in May, against an inflow of ₹1,16,486 crore in April.

Equity funds (including ELSS) witnessed net inflow of ₹11,350 crore, up 1.6 per cent from ₹11,171 crore in April.

Investments by retail investors through systematic investment plans (SIPs) helped y-o-y growth of 5.69 per cent. SIPs continue to gain traction and their contribution has almost doubled in the last two years to ₹6,690 crore in April 2018 from ₹3,122 crore in April 2016, pointed out ICRA.

The AUM under equity (including equity-linked savings schemes or ELSS), balanced and other ETFs for May came in at ₹10 lakh crore, down 0.25 per cent month-on-month (m-o-m) but up 36.42 per cent y-o-y.

The mutual fund industry added approximately 12.63 lakh new folios in May, of which 11.03 lakh were in the equity category (including ELSS). The income category added 2.8 lakh folios. However, the folio count declined in the balanced, liquid/money market and gilt categories.

According to data with the Securities and Exchange Board of India, the total folio count at the end of May stood at 7.35 crore, 1.72 per cent higher than in April. Smaller towns or B30 (beyond top 30 cities) accounted for 13.83 per cent of the total industry AUM at the end of May.

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