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August 2022 has been tremendous for the MF industry. The industry reported all time high numbers across all key data points be it monthly SIP contribution (Rs.12,693 crore), SIP AUM (Rs.6.40 lakh crore), SIP accounts (5.72 crore), total folio count (13.65 crore) and average AUM (39.53 lakh crore).
AMFI CEO NS Venkatesh said, “Such record figures coupled with continued positive flows in most categories of mutual fund schemes signifies rising and informed investment preference towards mutual funds. Investors continue to stay fully invested and also adhere to goal-based investing.”
He added, “Retail participation as a share of overall MF industry AUM at more than 50% indicates continued interest in the mutual fund asset class.”
The MF industry also reported net inflows of over Rs. 65,000 crore across all mutual fund categories.
Here are the key highlights of August 2022:
Fund flows
Equity funds (Open ended)
Equity funds witnessed net inflow of Rs. 6,119 crore. Apart from dividend yield funds which recorded outflows of Rs. 29.96 crore, sectoral/thematic funds (outflows of Rs. 1,266.67 crore) and ELSS (outflows of Rs. 131.06 crore), all other categories reported net inflows.
Debt funds (Open ended)
Debt schemes also reported net inflow of Rs. 49,164 crore largely due to liquid funds.
Majority of debt fund categories like overnight funds, banking and PSU funds and floater funds reported outflows of Rs. 16,405 crore, Rs. 1,380 crore and Rs. 2,285 crore, respectively.
Medium duration funds, medium to long duration funds, credit risk funds and gilt funds with 10 year constant duration also reported net outflows.
N S Venkatesh said, “Investors prefer liquid funds over interest rate sensitive fixed income schemes owing to RBI’s policy to contain inflation. Flows will come into debt schemes once RBI revises its stances to accommodative.”
Hybrid funds (Open ended)
These funds witnessed net outflow of Rs. 6,601 crore largely due to outflows of Rs.8550 crore from arbitrage funds.
Passives
Index funds and equity/debt ETFs reported net inflows of over Rs. 7,000 crore. On the other hand, gold ETFs and FoFs investing overseas reported outflows of Rs.38 crore and Rs. 98 crore, respectively.
SIPs
In the last one month, SIP accounts increased from 5.62 crore to 5.72 crore. The number of new SIPs and matured/discounted SIPs stood at 21.13 lakh and 11.46 lakh, respectively. Also, monthly SIP contribution went up from Rs. 12,139 crore in July to Rs. 12,693 crore in August.
Overall, SIP AUM increased to Rs. 6.40 lakh reflecting the positive market momentum.
