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Assets under management of the mutual fund industry has crossed the ₹25-lakh crore landmark for the first time to touch ₹25.2-lakh crore in August, against ₹23.05-lakh crore logged in July, registering a growth of 9 per cent on the back of strong inflow into liquid schemes and uptrend in equity markets.
Retail assets of the industry were up 26 per cent at ₹10.55-lakh crore. Inflow into equity schemes, including equity-linked saving schemes, was down 11 per cent at ₹8,375 crore, against ₹9,452 crore, even as AUM was up 31 per cent at ₹15,702 crore (₹11,923 crore) due to better performance of equity market. The benchmark Sensex was up 1,123 points to 38,645 in August-end from 37,522 level on August 1.
The monthly inflow through SIPs into MF schemes was up a tad at ₹7,658 crore (₹7,554 crore) with 90 per cent inflows into equity.
NS Venkatesh, CEO, AMFI, said the industry target of touching ₹50-lakh crore in the next three years would happen sooner than later with the steady inflow from retail investors and favourable macro-economic situation, he said. Retail investors’ trust in mutual funds can be gauged from the fact that retail inflows have been positive for 29 consecutive months and overall folios rising for 51 months in a row, he added.
Record inflows
Liquid funds witnessed an inflow of ₹1.71-lakh crore against an outflow of ₹31,000 crore in July. However, liquid fund AUM was down at ₹17.19-lakh crore, against ₹21.54-lakh crore logged in July. Balanced funds recorded a net inflow of ₹2,630 crore against an addition of just ₹287 crore in July.
Income funds saw an outflow of ₹6,520 crore, against ₹7,950 crore outflow in the previous month. Arbitrage funds logged outflow of ₹2,452 crore, against inflow of ₹1,333 crore. On the outflow from some of the schemes, Venkatesh said investors are switching their investments from income funds due to hardening of yields and parking them in liquid funds before rebalancing their portfolios.
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