Equity AUM reached a record high at Rs.10.35 lakh crore in January

2018 started with positive news for the mutual fund industry. AMFI data shows that equity AUM, including pure equity funds, balanced, ELSS and equity ETFs, of the industry touched a record high at Rs.10.35 lakh crore in January. Equity AUM increased by 2.61% or Rs.27,000 crore in a month.  

AMFI data also shows that despite the record AUM, inflows in equity in January 2018 have declined compared to December 2017. Equity funds, including pure equity funds, balanced, ELSS and equity ETFs, received inflows of Rs.20,821 crore in January 2018 compared to net inflows of Rs.24,239 crore in December 2017.

Experts attribute this to the cautionary approach of investors ahead of the Union Budget 2018. “Many investors who invest in equity through lumpsum were in a wait-and-watch mode last month due to Budget 2018,” said Navneet Munot, CIO, SBI MF.

Seconding Navneet’s view, S Krishnakumar, CIO (Equity), Sundaram MF, said, “We have seen volatility in the mid and small cap space last month. Many investors have either redeemed their investment or shifted to large cap funds.”  

Except ELSS, all equity funds have witnessed a marginal decline in inflows in January 2018 compared to December 2017.

Pure equity funds received the highest net inflows of Rs.13,404 crore among the equity funds. The AUM of these funds was Rs.7 lakh crore in January 2018.

Balanced funds, which saw continuous upsurge in its inflows in 2017, have seen decline in inflows. The category witnessed inflows of Rs.7,700 crore in January 2018 as against Rs.9,800 in December 2017.

Barring income funds, gold ETF, gilt funds and FOFs investing overseas, all other categories witnessed inflows. Overall, the industry witnessed inflows to the tune of Rs.1.06 lakh crore while the total AUM for the month of January stood at Rs.22.41 lakh crore.

Monthly AUM and net inflows/outflows for January 2018

Source: AMFI