MF AUM crosses Rs.23 lakh crore in April

The new financial year started on a positive note for the mutual fund industry. Its assets under management reached an all-time high of Rs.23.25 lakh crore, shows the latest AMFI data. The AUM rose 9% last month, from Rs.21.36 lakh crore in March.

The growth is due to healthy inflows in liquid, income and equity funds.

AMFI data shows that equity funds received inflows of Rs.10,700 crore in April. If we include ELSS, balanced funds, and ETFs that track indices, the overall inflows in equity funds rose to Rs.15,000 crore in April. The rise in the inflows of equity funds is mostly due to investments by retail investors through SIPs.

Similarly, balanced funds recorded the second highest inflows in equity category in April. These funds received inflows of Rs.3,500 crore.

Inflows in ELSS and ETFs stood at Rs.447 crore and Rs.305 crore in April, respectively.

The assets of equity funds including ELSS, ETFs and balanced funds have also reached an all-time high at Rs.10.60 lakh crore. This is largely due to increased inflows in equity funds and mark to market gains. While the industry received inflows of Rs.16,000 crore in April, BSE Sensex and Nifty 50 reached close to their previous highs last month.

AMFI has started disclosing inflows and assets of arbitrage funds separately from this month. The industry has collected Rs.1,238 crore through arbitrage funds. Largely corporates/HNIs invest in arbitrage funds for tax purposes. This separate disclosure will help the MF industry get a better picture on net inflows.

Among debt funds, income and liquid funds received inflows of Rs.5,200 crore and Rs.1.16 lakh crore respectively, in April largely because of investments from corporates and institutions. Experts say that corporate and institutions generally redeem their investments at the end of a quarter from debt funds to pay advance tax.

Net inflows/ outflows in April (in Rs crore)

Figures in Rs.crore

Source: AMFI