Year 2021 started on a positive note for the MF industry. In line with the equity markets rally, the total AUM of the MF industry has reached Rs.31.84 lakh crore in January 2021 from Rs.30.96 lakh crore in December 2020, a growth of 3%.
However, equity funds continue to witness outflows for the seventh consecutive month with a net outflow of Rs.9,253 crore in January 2021.
N S Venkatesh, CEO, AMFI said, "January 2021 saw measured maturity-driven redemptions led by smart, goal-based investing and the desire to book profits with equity indices reaching all-time high. Inflows continued via the SIP route, as seen from rising number of new SIP registrations coupled with robust monthly SIP contribution. On the debt side, owing to regulatory measures to ease liquidity, and also the stance to hold on to the policy rates, some of the debt categories like corporate bond fund, banking & PSU fund, short duration funds have seen positive flows. Even the credit risk funds are now moving into positive flows, given that the risk-return dynamics is working in favour of retail investors. All this has resulted in the mutual fund industry AAUMs breaching all time high at Rs.31.84 lakh crore".
Let us look at key numbers of January 2021:
Equity schemes
- Overall, equity schemes have witnessed net outflows of Rs.9,253 crore in January
- However, net outflows have reduced from Rs.10,147 crore in December
- All equity funds except sectoral/thematic and dividend yield funds have registered net outflows due to profit booking
- Flexi cap funds saw highest net outflows of Rs.5,933 crore followed by multi cap fund with net outflows of Rs.2,857 crore
- Large cap fund have witnessed net outflows of Rs.2,853 crore
- Mid and small cap funds have seen net outflows of Rs.1,206 crore and Rs.1,572 crore respectively
- Number of folios in equity funds has risen by 6.69 lakh to 6.44 crore in January
Debt schemes
- Debt funds have witnessed net outflows of Rs.33,408 crore led by huge outflows in liquid funds of Rs.45,315 crore followed by low duration funds with net outflows of Rs.8,000 crore
- The industry has also recorded net outflows in money market funds, medium to long duration funds, long duration funds and gilt funds
- On the other hand, short duration funds, corporate bond fund, floater funds and medium duration funds and banking and PSU fund have seen net inflows
Hybrid schemes
- Hybrid fund have witnessed net inflows led by arbitrage funds with net inflows of Rs.5,234 crore
- Balanced advantage fund and conservative hybrid fund have also witnessed net inflows
- On the other hand, aggressive hybrid fund, multi asset allocation fund and equity savings fund have recorded net outflows
SIP trend
- SIP inflows have witnessed a marginal decline as SIP inflows decreased to Rs.8,023 crore in January from Rs.8,418 crore in December
- In addition, SIP folios grew to 3.56 crore in January from 3.47 crore in December
- Overall, SIP AUM has declined to Rs.3.90 lakh crore in January from Rs. 3.98 crore in December
Broad trend
- Overall, the MF industry has witnessed net outflow of over Rs.35,586 crore
