Year 2017 started on a positive note for the mutual fund industry. The assets managed by the Indian mutual industry have grown from Rs.12.73 lakh crore in January 2016 to Rs.17.36 lakh crore in January 2017, shows the latest AMFI report. This translates to a growth of 36% in assets.
In December 2016, the industry monthly AAUM crossed the landmark of Rs.17 lakh crore and highest ever quarterly AAUM of Rs.16.93 lakh crore for the quarter ended December 2016.
The growth in MF assets is largely due to renewed interests of investors in equity funds.
If we take into account inflow in balanced funds (Rs. 3304 crore), ELSS (Rs. 1166 crore) and equity ETFs (Rs. 6748 Rs. crore), the combined inflow in equity category is close to Rs. 15,000 crore in January. In fact, the equity AUM of the industry has now crossed Rs.6 lakh crore (including balanced, ELSS and equity ETFs).
However, most of the inflows in January has come through the FFO of CPSE ETF. Reliance Mutual Fund has collected Rs.6000 crore during the FFO, shows the latest AMFI data.
If we exclude CPSE ETFs, the industry has received close to Rs.9000 crore in equity funds, ELSS, balanced funds and index funds in January. Sharing his analysis of these inflows, D P Singh, ED & CMO (Domestic Markets), SBI MF told Cafemutual, “Since Rs.4000 crore comes from SIP every month and Rs.500 crore has come in index funds, one can make out that the industry has received Rs.4500 crore in equity funds through lump sum mode.”
Encouragingly, a predominant share of the flow has come in pure equity funds (not arbitrage), say fund officials. “Arbitrage funds have received inflows of only Rs.500 crore in January due to unattractive spreads,” says D P Singh.
About Rs.4000 crore comes from SIPs every month, which is helping the category grow. On an annualised basis, this works out to Rs. 48,000 crore inflow. Sustained inflow helped equity funds receive Rs. 56,000 crore net inflow in April – January in equity funds and ELSS, shows SEBI data.
Interestingly, the industry does not have to rely on NFOs to shore up its equity assets. The two equity fund NFOs in January collected Rs. 231 crore.
Barring gilt funds and gold ETFs, all other categories have received positive inflows in January.
Inflows/outflows in January 2017
|
Category |
Net inflow/outflow |
AUM |
|
Equity |
3714 |
442810 |
|
ELSS |
1166 |
53886 |
|
ETFs |
6748 |
37412 |
|
Balanced |
3304 |
71021 |
|
Income |
28588 |
783778 |
|
Liquid |
10541 |
321889 |
|
Gilt |
-212 |
16907 |
|
Gold ETFs |
-35 |
5670 |
|
FOF investing overseas |
3 |
1838 |
|
Total |
1562388 |
1737087 |
Source: AMFI
