The Indian mutual fund industry’s assets under management (AUM) rose 1.4% in May 2015 to reclaim the Rs 12 trillion mark and close at its record high as per the latest numbers declared by the Association of Mutual Funds in India (AMFI). The increase was primarily propelled by inflows in equity and income funds. Outflows in liquid funds, though, capped further gains.
Equity funds scale new highs
Investors continued to pump money into equity funds despite volatility in the asset class in recent months. The category logged inflows for the 13th consecutive month in May, with Rs 100.76 billion flowing in. Cumulatively, the category has seen inflows of Rs 918.49 billion over the 13-month period. Equity funds’ AUM rose 5.8% or Rs 200.37 billion to a record high of Rs 3.65 trillion in May, buoyed by higher inflows and mark to market (MTM) gains. Although ridden with volatility, the market as represented by the CNX Nifty gained 3.1% in May, after the benchmark fell 3.7% and 4.6%, in April and March, respectively.
Balanced funds also ride positive wave
Mutual fund category | Net inflow/ outflow (Rs billion) | Month-end AUM (Rs billion) | ||||
May-15 | Apr-15 | 2015 Total | May-15 | Apr-15 | Difference | |
Income funds | 42.05 | -25.10 | 47.79 | 5,221.78 | 5,146.28 | 75.50 |
Infrastructure debt funds | 0.00 | 2.30 | 2.30 | 14.29 | 14.18 | 0.11 |
Equity funds* | 100.76 | 105.84 | 413.05 | 3,651.66 | 3,451.29 | 200.37 |
Balanced funds | 12.02 | 11.83 | 59.46 | 287.49 | 270.15 | 17.34 |
Liquid / money market funds | -156.57 | 1,015.92 | 677.57 | 2,538.99 | 2,667.22 | -128.23 |
Gilt funds | 8.75 | 1.64 | 63.49 | 156.52 | 147.39 | 9.13 |
Gold ETFs | -0.86 | -0.69 | -4.71 | 66.88 | 68.18 | -1.30 |
Other ETFs | -3.34 | -5.79 | 5.90 | 73.17 | 74.04 | -0.87 |
Fund of funds investing overseas | -0.38 | -0.26 | -3.27 | 24.69 | 24.91 | -0.22 |
Total | 2.43 | 1,105.69 | 1,261.58 | 12,035.47 | 11,863.64 | 171.83 |
* Includes ELSS | ||||||
Source - AMFI |