MF industry AUM crosses Rs 8 lakh crore, up 9 percent in January

Industry’s assets went up to Rs 8.26 lakh crore in January, up 9% from Rs 7.59 lakh crore in December helped by robust inflows in liquid and income schemes.

Helped by robust inflows of Rs 62146 crore in liquid and income funds, the MF industry’s assets under management crossed Rs 8 lakh crore mark for the first time in January from Rs 7.59 lakh crore in December. The industry received net inflows of Rs 60732 crore in January compared to net outflows of Rs 40900 crore in December.

As markets continued to go up in January, the trend of equity fund outflows continued. Equity funds (including ELSS) saw net outflows of Rs 2690 crore in January from Rs 1718 crore in December.  The BSE Sensex breached the 20,000 mark and gained 468 points in January. Equity fund net outflows reached Rs 13317 crore (YTD).

Gilt funds continued to attract investors attention, registering net inflows of Rs 1145 crore as these funds are expected to benefit from a softening interest rate environment. Gilt funds saw net inflows of Rs 985 crore in December when the expectations of rate cut were high. Gold ETF inflows moderated in January with Rs 81 crore net inflows compared to Rs 474 crore in December.

Among the new fund offers, Indiabulls Gilt Fund collected Rs 102 crore while income schemes collected Rs 5107 crore.

“There will be a revival in FMPs in February and March because of increase in short term yields. Equity continues to be a challenge,” said Anthony Heredia, MD& CEO, Morgan Stanley Mutual Fund.

Net inflows/outflows in January