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Despite the equity and debt markets going through a not so good phase, the mutual fund industry has not taken much of a hit in the last three months, thanks to a good flow of new investments.
AMFI data shows that the average assets under management (AUM) of the mutual fund industry stood at Rs. 37.70 lakh crore in the first quarter of FY 2023, 1.8% lower than the previous quarter AUM of Rs. 38.40 lakh crore.
In the corresponding period, Nifty50 registered a decline of 10.5% and the broader market index Nifty 500 dropped 11%. Debt funds returns ranged from -1.6% to 1.5% and gold prices were almost flat.
This shows that high inflows might have cushioned the impact of market decline. The industry received a net inflow of Rs. 73,000 crore in April and registered an outflow of Rs. 7,500 crore in May. AMFI is yet to release June data.
A look at the detailed AMFI data shows that most mutual funds were able to save their AUMs from the market fall. Majority of the fund houses either saw a small decline or registered a slight growth. For example, the top two fund houses SBI and ICICI Prudential saw their AUM change 0.1% and -0.6%, respectively.
