2020 ended on a good note for the MF industry as the industry’s AUM touched Rs.31 lakh crore in December as compared to Rs.26.54 lakh crore a year ago. This was largely due to mark-to-mark gains in equities and inflows in debt funds. Benchmark indices Sensex and Nifty 50 each surged 8% reaching their historic highs while debt funds witnessed record inflows last year.
While equity funds witnessed net outflows for the sixth consecutive months last year, SIP inflows bounced back after witnessing a decline for couple of months.
Let’s look at the 2020 highlights for the MF industry:
Unique investors and folios
- The MF industry has added 12.50 lakh new investors in 2020 taking the total count of unique investors to 2.15 crore in December 2020 from 2.02 crore last year. The industry has added 1.40 lakh new investors in December
- The industry’s total folio count has risen to 9.43 crore in December 2020 from 8.71 crore in December 2019, an increase of 72 lakh new folios
Redemption
- Overall, gross redemptions have come down significantly to Rs.7.54 lakh crore in December 2020 from Rs.12.12 lakh crore in December 2019. However, it has risen on a monthly basis from Rs.5.39 lakh crore in November
- However, equity funds have witnessed net outflows for the sixth consecutive month. Net outflows in equity funds were Rs. 10,147 crore compared to 12,917 crore in November
- On the contrary, debt funds have recorded net inflows of Rs. 13,862 crore in December compared to net inflow of Rs. 44,983 crore in November
T30 vs B30
- T30 cities have accounted for Rs.25.83 lakh crore (83%) of industry’s total AUM while B30 cities have AUM of Rs.5.19 lakh crore, which comprises 17% of the total industry AUM
- AUM in T30 cities has grown by 17% on year to Rs.25.83 lakh crore in December 2020 from Rs.22.17 lakh crore in December 2019
- Similarly, AUM in B30 cities has risen by 19% to Rs.5.19 lakh crore in December 2020 as against Rs.4.37 lakh crore in December 2019
Average AUM per folio
- Average AUM per retail folio has increased by 4% to Rs.1.76 lakh in December 2020 from Rs.1.70 lakh in December 2019
- Average AUM per folio of retail investors in both B30 and T30 cities has risen by 7% and 3% respectively to Rs.1.04 lakh and Rs.2.28 lakh on a yearly basis
ARNs
- 497 individuals joined the MF distribution business in December
- 3,648 ARNs were renewed in December – 2,482 individual distributors, 166 corporates and 1,000 corporate employees
- Maharashtra holds the top position in terms of new ARN and EUIN registration with 16.9% followed by Uttar Pradesh (8.8%), Gujarat (8.7%)
