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The MF industry has started the financial year 2022-23 on a positive note.
AMFI data shows that the MF industry has recorded net inflows of Rs.73000 crore across all scheme categories. While equity funds have recorded net inflows of Rs.15,890 crore, debt funds saw inflows of Rs.54,757 crore in April 2022.
In addition, retail equity assets in the MF Industry, which indicates health of the industry, has grown by 40% in one year to reach all time high of Rs.19.27 lakh crore.
The total industry assets have also increased by 20% to reach Rs. 38.89 lakh crore in one year.
NS Venkatesh, Chief Executive, AMFI said, “It has been a good start to new Fiscal - FY 23 with net flows for overall mutual fund schemes in the positive territory and continued positive equity flows for consecutive 12 months. Despite market volatility in Apr 22, retail investors trust in mutual fund asset class continues to be strong, as reflected by the 36% rise to an all-time high retail AUM.”
He further said, “Going forward, we see mutual fund investors continue with their SIP mode of investments on equity side and reallocate their savings in debt funds more towards shorter duration schemes owing to recent hike in rates by RBI.”
Here are the key numbers:
SIP and AUM
SIP AUM has increased from Rs. 5.76 lakh crore in Mar 22 to Rs. 5.78 lakh crore in Apr 22. Though the monthly SIP contribution declined from Rs. 12,328 crore to Rs. 11,863 crore in a month, the number of SIP accounts stood at an all-time high of 5.39 crore in Apr 22. Overall, the mutual fund industry has added 11.29 lakh SIPs in Apr 22.
Equity funds
Equity funds (growth/equity-oriented schemes) have seen net inflow of Rs. 15,890 crore; lower than Rs. 28,463 crore in Mar 22.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC said, “Despite volatility in markets and fear around macros both globally and locally, it is good to see continuous positive flows in equities. SIP flows are also holding strong. It will be interesting to see ongoing investment trends given the intensity of volatility being very high, I do expect positive trend to continue going forward though.”
In line with the last month, fund flows have been positive across all schemes. Sectorial/thematic funds, large & mid cap funds and small cap funds have recorded the highest net inflows in April 2022.
Debt
Debt fund flows have turned positive with net inflows of Rs. 54,757 crore. However, half of the total 16 debt scheme categories have recorded negative fund flows.
While categories like short duration funds, banking and PSU funds and corporate bond funds have recorded massive outflows, the overall debt fund flows are largely supported by net inflows in liquid funds, money market funds and ultra-short duration funds.
Hybrid
Hybrid funds have recorded net inflows of Rs. 7,240 crore. Among hybrid category, arbitrage funds and dynamic asset allocation funds have seen the highest net inflows in April.
