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Despite heightened volatility in both equity and debt market in May, the MF industry continued to witness healthy inflows in equity schemes especially through SIPs.
Monthly SIP contribution rose back to the Rs. 12,000 crore mark after falling a bit in April. SIP registrations and folio counts also registered a decent growth. While SIP registrations stood at 19.74 lakh in May, the retail folio count rose to 10.6 crore.
AMFI CEO NS Venkatesh said that retail investors are taking the SIP path for long-term savings. “Retail mutual fund investors continue to embrace SIP mode and equity and hybrid asset class for their long-term savings. Their confidence in equity asset class stems from the fact that India growth story continues to be promising and intact relative to other major economies," he said.
Akhil Chaturvedi, Chief Business Officer of Motilal Oswal AMC said, “I believe the consistent SIP flows are supporting the net positive sales numbers in equities. Through the on-going volatility, we see continued interest amongst retail investors to allocate to equity schemes. The spread of new flows is well diversified across equity and hybrid categories.”
Here are the key highlights of May 2022:
SIP and AUM
- The average AUM in May declined to Rs. 37.4 lakh crore from Rs. 38.9 lakh crore in April
- Folio count reached a new all-time high of 13.33 crore in May. A year ago, the count stood at 10 crore
- The industry recorded a monthly SIP contribution of Rs. 12,286 crore in May, which was Rs. 423 crore higher than the contribution in April
- The number of SIP accounts reached 5.48 crore and SIP AUM stood at Rs. 5.65 lakh crore
Equity funds
Equity funds received a net inflow of Rs. 18,500 crore in May compared to Rs. 15,890 crore in April. All schemes posted positive net inflows with flexicap funds receiving the highest net inflow at Rs. 2,900 crore. Thematic funds, largecap funds and large & midcap funds also posted a net inflow of above Rs. 2,000 crore.
Debt funds
Debt funds continued to bleed as interest rate hikes spooked the market. Investors withdrew a net of Rs. 32,700 crore from debt funds in May.
Money market funds witnessed the highest net outflow at Rs. 14,600 crore. Short duration funds and floater funds also witnessed high redemptions. The fund categories recorded net outflow of Rs. 8,600 crore and Rs. 5,300 crore, respectively.
Hybrid funds
Balanced advantage funds, aggressive hybrid funds and arbitrage funds received highest net inflows in the hybrid category. While balanced advantage received net inflow of over Rs. 2,000 crore, aggressive hybrid and arbitrage recorded a net inflow of over Rs. 1,000 crore.
