The mutual fund industry witnessed a fall in average assets in February. The latest AMFI data shows that AAUM of the MF industry was Rs.23.17 lakh crore in February 2018. It decreased by 0.34%, or Rs.23,000 crore, from Rs.23.25 lakh crore in January 2018.
AMFI monthly data show that the month-end AUM was Rs.22.20 lakh crore.
While AAUM is the average assets of the entire month that is calculated by factoring in all working days of the period, month-end AUM is the assets of the industry as on the last working day of the month.
In February, there was a marginal decline in AUM across all categories except liquid and infrastructure debt funds because of the mark to market losses. The equity markets plummeted after the Budget reintroduced long-term capital gains tax. BSE Sensex lost 1,781 points or 4.95% in February.
If we take a one-year view, AAUM was up 25.3% from Rs.18.48 lakh crore in February 2017.
In the last 10 years, the AUM has increased four times, from Rs.5.05 lakh crore as on March 2008 to Rs.22.20 lakh crore as on February 2018. The data shows that in a span of less than four years, the AUM has increased more than two times, from Rs.10 lakh crore in May 2014.
However, despite the fall in AAUM, inflows into equity mutual funds remained strong. The total net inflow for February 2018 stood at Rs.12,092 crore with the maximum inflow of Rs.14,683 crore witnessed in the pure equity category.
“The increase was mainly driven by sustained inflows through SIPs. Compared with January 2018, there was a marginal decline in AUM across all categories except liquid and infrastructure debt funds. Also, the income category witnessed net outflows to the tune of Rs.9,800 crore possibly because of the rise in yields,” ICRA said.
Similarly, the addition of new folios remained robust in February. The industry added more than 15.7 lakh new folios despite volatile markets.