Money deluge for MFs thanks to equity boom

| Updated on: Jan 15, 2018

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Gold ETF is the lone loser with a 13% dip in mop-up due to a fall in prices

The mutual fund industry has made the most of the bullish market sentiments and managed to register sharp growth in asset under their management in the financial year ended March 2017.

ICICI Prudential Mutual Fund, which topped the AUM table, registered a rise of 38 per cent in its AUM at ₹2.43 lakh crore (1.76 lakh crore).

HDFC MF and Reliance MF logged in 35 per cent and 33 per cent increase at ₹2.37 lakh crore and ₹2.12 lakh crore, respectively. Birla Sun Life MF’s AUM was up 43 per cent at ₹1.95 lakh crore (₹1.37 lakh crore) while SBI MF posted a growth of 47 per cent to ₹1.07 lakh crore.

Overall, the industry AUM was up 42 per cent at ₹17.54 lakh largely due to increase in inflow into equity and income schemes.

Investment in equity schemes were up 40 per cent at ₹4.82 lakh crore (₹3.44 lakh crore) while income funds’ mop up improved by 31 per cent to ₹7.43 lakh crore (₹5.65 lakh crore).

Equity linked tax saving schemes inflows increased by 47 per cent to ₹61,403 crore (₹41,696 crore). Gold ETFs has been the only laggard with mop up falling 13 per cent to ₹5,480 crore (₹6,346 crore) largely due to fall in gold prices.

Reaches via network DP Singh, Chief Marketing Officer, SBI MF, said the fund house has managed to attract investments from rural regions by tapping into the banking network of the parent SBI besides increasing the dealers network.

“We expect the inflows into mutual funds to continue this fiscal too but the only issue has been on the supply side with shortage in availability of quality stocks to invest,” he said.

However, he added the constrain may ease with government planning to offload its stake in equity market and promoters looking to sell part of their holding with stock prices rising relentlessly.

A few quality initial public offerings are also expected with some of the company that have benefited from the economic boom looking to tap the market, added Singh.

SIP to remain favourite SBI MF expects Systematic Investment Plan to remain the favourite option for retail investors entering the market. The inflow into equity market through SIP route has gone up by 40 per cent to ₹4,200 crore (₹3,000 crore) as of financial year ended March 31, 2017. SBI MF’s SIP book has nearly doubled to ₹455 crore from ₹250 crore.

“I will not be surprised if the industry attracts inflows of about ₹6,400 crore through SIP next fiscal,” said Singh.

Published on April 12, 2017
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