B30 cities saw their MF assets decline by Rs. 45,441 crore (11.29%) shows latest AMFI data. The higher equity market volatility may have resulted in the fall in AUM in B30 cities. However, overall industry AUM grew by Rs. 1.10 lakh crore during the period indicating a faster growth in T30 assets.
The asset mix of B30 cities continues to tilt towards equities. As in April, 65% of the B30 AUM came into equity schemes in September. On the other hand, allocation to equities increased in T30 cities from 36% to 38% during the period. A quick look at overall inflow – outflow data during the last few months reveals robust inflows in equity schemes while debt schemes have seen net outflow in AUM. Increasing interest rates, IL&FS credit event have made investors slightly cautious of the debt markets. This may have contributed to the fall in debt contribution in T30 cities.
In terms of retail AUM, 22.31% came from B30 cities while the rest came from T30 cities in September. The concentration of corporates in major cities led to 94.04% of the institutional AUM coming from T30 cities.
Overall, all 40% of the industry assets came through the direct route in September. Majority of these assets were in non-equity schemes, which see maximum investments from corporates. The liquid and money-market schemes which see highest corporate participation reported 70% direct investments while the debt category recorded direct investments to the tune of 47%. Meanwhile distributors were the key drivers of inflows in equity schemes with 84% of equity investments coming via the regular plans.
Amongst individual investors, 11% of retail investors and 20% of HNI investors invested through the direct route during the month. Overall, 8% of individual investor AUM came in equity schemes through direct plans while majority (92%) was channelized by distributors.
