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Nov 15, 2017 03:12 PM IST | Source: Moneycontrol.com

Mutual fund AUMs breach Rs 21-lakh-crore mark: AMFI

The assets of equity funds which includes equity linked savings schemes increased 46 percent year-on-year to climb past the 7 lakh crore mark for the very first time.

Himadri Buch @himadribuch

The assets under management of the 43-player mutual fund industry stood at Rs 21.41 lakh crore in October 2017 as against Rs 20.40 lakh crore in September 2017, according to the data on AMFI website.

Among categories, the assets of equity funds which includes equity-linked savings schemes (ELSS) increased 46 percent year-on-year to climb past the 7 lakh crore mark for the very first time.

The total net inflow of the industry for October 2017 stood at Rs 51,148 crore with the maximum inflow of Rs 40,845 crore witnessed in the income category.

Equity (including Equity Linked Savings Schemes or ELSS), balanced and other ETFs saw inflows to the tune of Rs 16,002 crore, Rs 5,897 crore, and Rs 1,675 crore, respectively.

In October 2017, equity funds (including ELSS) witnessed monthly net inflows of Rs 16,002 crore, a significant growth of 70 percent on year.

Fund managers attributed the robust inflows in equity funds to sustained interest of retail investors and mark-to-market gains.

In the first seven months of FY18, cumulative inflows into these funds tripled to Rs 96,359 crore compared with Rs 31,627 crore in the same period of the previous year.

However, net inflows in the equity category (including ELSS) reduced by Rs 4,360 crore in October 2017 from a life-time high of Rs 20,362 crore witnessed in August 2017, which could be a cyclical impact as investors prefer to invest in physical gold during the festival months, states ICRA report.

In terms of mutual fund folio count, the mutual fund industry’s folio count reached 6.32 crore in October 2017, up 1.8 percent on month, according to data from the Securities and Exchange Board of India.

The growth was mainly driven by the addition of 8.41 lakh new folios to the equity category (including ELSS) and 1.85 lakh new folios to the balanced category. However, folio count fell by 5,208 and 653 in Other ETFs and Fund of Funds investing overseas, respectively, from September-end levels.

The B15 towns witnessed AUM growth of 39.3 percent on year in October 2017.

The country’s smaller towns or B15 (beyond top 15 cities) locations accounted for 17.9 percent of the total industry AUM at the end of October 2017.

In the last 12 months, B15 towns have witnessed AUM growth of 39.3 percent to reach Rs 3.9 lakh crore at the end of October 2017 compared with Rs 2.8 lakh crore a year ago.

Awareness campaigns by AMCs and AMFI have been the growth drivers. In October 2017, the share of direct plans in B15 towns stood at 20.9  percent against 45.9 percent in T15 cities.

According to ICRA report, mutual fund AUM grew 30 percent, while inflows in the industry have witnessed growth of approximately 42 percent, respectively, in the post-demonetisation period since November 2016.

Inflows in the equity category (including ELSS) surged 76 percent and Balanced and other ETFs grew nearly 52 percent over the same period amid low interest rates, good performance of equity, and unattractive returns from real estate.

Folios added to the equity (including ELSS) and balanced categories stood at 80.4 lakh and 18.4 lakh, respectively. Sensex experienced a return of nearly 25 percent over the period. AUM growth in B15 towns was nearly 39 percent as the cash-ban helped spur investments from smaller centres.

T15 towns’ growth came in at 27 percent in the period. Systematic Investment Plan (SIP) contribution has increased by 42 percent in September 2017 from November 2016.
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