The mutual fund industry has finally crossed the Rs.20 lakh crore milestone. The latest AMFI data shows that average assets under management (AAUM) of the MF industry crossed the Rs.20 lakh crore milestone to reach Rs.20.42 lakh crore in July 2017. It has increased by 2.5% or Rs.50,000 crore from Rs.19.92 lakh crore in June 2017.
AMFI monthly data shows that the month end AUM of the MF industry is just short of Rs.20 lakh crore mark at Rs.19.94 lakh crore. The industry received net inflows of Rs.63,500 crore in July 2017.
While AAUM is the average assets of the entire month which is calculated by factoring in all working days of the month, month end AUM is the assets of the industry as of the last working day of the month.
In the last five years, the AUM has increased three and half times from Rs.5.87 lakh crore as on March 2012 to Rs.19.97 lakh crore as on July 2017. The data shows that in a span of three years, the AUM has doubled from Rs.10 lakh crore to Rs.20 lakh crore.
Experts say that increasing appetite of retail investors in equity funds and mark-to-market gains have resulted in the growth of AUM in the MF industry. They also attributed the increase in AUM to the investor awareness programs. Growth in folios reflect this increasing appetite for mutual funds among retail investors. In July, the MF industry has added 12 lakh folios, of which 7 lakh folios were equity folios.
Another factor that has contributed to the growth in AAUM is increasing inflows in mutual funds through SIP. AMFI data shows that the industry has added about 8.23 lakh SIP accounts each month on an average during the FY 2017-18 i.e. 27,000 new SIP accounts were opened each day. The total SIP account stood at 1.52 crore, increased by 17 lakh from March 2017. The industry has collected close to Rs.5,000 crore through SIP in July.
