The mutual fund industry awaits its euphoric moment as MF assets inch close to Rs.20 lakh crore milestone. The latest AMFI data shows that AUM of the MF industry has reached Rs.19.94 lakh crore in July 2017. It has increased by 5% or Rs.1 lakh crore compared to Rs.18.96 lakh crore in June 2017.
Experts say that increasing interest of retail investors and the on-going uptrend in the stock market have fuelled the growth in the MF industry.
Reflecting the positive sentiment in the stock market, equity funds saw an inflow of Rs. 12,037 crore. If we include ELSS, balanced funds, and ETFs that track indices, the overall inflows in equity funds recorded an all time high Rs.22,344 crore in July. The rise in the inflows of equity funds is mostly due to investments by retail investors through SIPs.
Another factor that has contributed to the growth of equity AUM is inflows in arbitrage funds. “Since spreads in the derivative markets are attractive, investors have put money in arbitrage funds. In arbitrage funds, one can predict the expected returns every month based on spreads. Large investors like corporates and HNIs use this strategy to park money in arbitrage funds for short term,” said a Mumbai based distributor.
Balanced funds have been flavour of the season. AMFI data shows that investors have poured in Rs.7,864 crore, taking its total AUM to Rs.1.21 lakh crore. Experts say that many HNIs have started putting money in balanced advantage funds as the market is at a peak.
In the debt funds category, income funds received inflows of Rs. 60,084 crore as against Rs. 20,685 crore in June while liquid funds witnessed an outflow of Rs. 19,511 crore.
Overall, the MF industry witnessed an inflow of Rs. 63,504 crore in July, 2017.
Monthly AUM and net inflows/outflows for July 2017
|
Category |
July AUM |
Net inflow/outflow |
|
in Rs Crore |
||
|
Equity |
5,59,409 |
12,037 |
|
ELSS |
70,047 |
690 |
|
Balanced |
1,21,243 |
7,864 |
|
ETFs other |
52,823 |
1,753 |
|
ETFs gold |
5,098 |
(38) |
|
Income |
8,45,484 |
60,084 |
|
Gilt |
15,606 |
651 |
|
Liquid |
3,23,351 |
(19,511) |
|
FOFs investing overseas |
1,670 |
(26) |
|
Total |
19,94,731 |
63,504 |
