October ended on a good note for the MF industry. The industry’s average AUM has reached its peak at Rs.28.34 lakh crore in October compared to Rs.27.74 lakh crore in September. This is largely due to increasing net inflows in fixed income funds. Barring credit risk and long duration funds, the industry has received healthy net inflows across all debt fund categories.
Let’s look at the summary of October month for the MF industry:
Unique investors and folios
- The MF industry has added 52,674 new investors in October taking the total count of unique investors to 2.13 crore
- The industry’s total number of folios has risen to 9.37 crore in October from 9.33 crore in September, an increase of 4.12 lakh new folios
Redemptions
- Overall, gross redemptions have come down significantly to Rs.5.45 lakh crore in October from Rs.7.18 lakh crore in September
- However, equity funds have witnessed net outflows for the four consecutive month. Net outflows in equity funds were Rs.2,700 crore compared to Rs.730 crore in September
- On the contrary, debt funds have recorded net inflows of Rs.1.10 lakh crore in October compared to net outflow of Rs.51,900 crore in September
T30 vs B30
- T30 cities account for Rs.23.54 lakh crore (83%) of industry’s total AUM while B30 cities have AUM of Rs.4.69 lakh crore, which comprises 17% of the total industry AUM
- AUM in T30 cities has grown by 5% to Rs.23.54 lakh crore in October from Rs.22.34 lakh crore in September
- Similarly, AUM in B30 cities has risen by 4% to Rs.4.69 lakh crore in October as against Rs.4.52 lakh crore in September
- Folio count in both T30 and B30 cities grew marginally last month
Average ticket size
- Average AUM per retail folio has increased by 2% to Rs.1.58 lakh in October from Rs.1.55 lakh in September
- Average AUM per folio of retail investors in both B30 and T30 cities has risen by 2% each to Rs.92,700 and Rs.2.06 lakh, respectively
ARNs
- 453 individuals joined the MF distribution business in October
- 2,628 ARNs were renewed in October – 1,565 individual distributors, 136 corporates and 927 corporate employees
- Maharashtra continues to holds the top position in terms of new ARN and EUIN registration with 20% followed by Gujarat (10.19%), Uttar Pradesh (8.70%)
