The financial year 2020-21 ended on a positive note for the MF industry.
Despite the pandemic, the industry has added 20 lakh new investors and the average AUM of the industry has grown by 30% to Rs.32 lakh crore.
Let’s look at the key highlights of the MF industry in March 2021:
Unique investors and folios
- The MF industry has added 5.15 lakh new investors in March 2021 taking the total count of unique investors to 2.27 crore in March 2021 as against 2.07 crore in February 2021
- The industry’s total folio count has risen to 9.79 crore in March from 9.62 crore in February
Redemption
- Overall, gross redemptions have come down significantly to Rs.8.73 lakh crore in March 2021 from Rs.15.25 lakh crore in March 2020. However, it has risen on a monthly basis from Rs.5.97 lakh crore in February
- After witnessing net outflows for nine consecutive months, equity funds have finally seen net inflows of Rs.9,115 crore in March
- On the contrary, debt funds have witnessed net outflows of Rs.52,528 crore in March as compared to net inflow of Rs.1,734 in February largely due to redemption from liquid funds
T30 vs B30
- T30 cities have Rs.26.07 lakh crore (83%) of industry’s total AUM while B30 cities have AUM of Rs.5.36 lakh crore
- AUM in T30 cities has grown by 39% from March 2020 to Rs.26.07 lakh crore in March 2021 from Rs.18.71 lakh crore in March 2020
- Similarly, AUM in B30 cities has risen by 51% to Rs.5.36 lakh crore in March 2021 as against Rs.3.55 lakh crore in March 2020
Average AUM per folio
- Average AUM per retail folio has increased by 33% to Rs.1.77 lakh in March 2021 from Rs.1.33 lakh in March 2020
- Average AUM per folio of retail investors in both B30 and T30 cities has risen by 35% and 33% to Rs.1.04 lakh and Rs.2.30 lakh in March 2021 from March 2020, respectively
ARNs
- 1,400 individuals have joined the MF distribution business in March
- 5,438 ARNs were renewed in March– 3,396 individual distributors, 183 corporates and 1,857 corporate employees
- Maharashtra holds the top position in terms of new ARN and EUIN registration with 25.29% followed by Gujarat (12.26%) and Uttar Pradesh (8.35%)
