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With equity inflows of close to Rs.80,000 crore, the MF industry registered growth of 33% in terms of net equity inflows in the first six month of FY 2023, shows an analysis of AMFI data done by Cafemutual. In April-Sept 2021, the MF industry had witnessed net inflows of Rs.60,000 crore.
On an average, the the industry has been receiving net inflows of over Rs.13000 crore every month through equity funds. The industry received highest inflows of Rs.18500 crore in the month of May 2022.
Interestingly, the bulk of inflows has come from NFOs during the first six months of FY 2023. The industry collected Rs.57000 crore or 71% of the total inflows during NFOs in April-September 2022. Such a collection was just Rs.21,000 crore or just 35% of the total inflows in the corresponding period last year.
Debt
Debt funds witnessed outflows of over Rs 80,000 crore in April-Sept 2022 largely due to redemption from short term categories liquid and ultra-short term funds. Surprisingly, in April-Sept 2021, the industry witnessed net inflows of Rs.71000 crore.
Hybrid
The first six months of the current financial year wasn’t good for hybrid funds. The category witnessed net outflows of Rs.4500 crore during April-September 2022. Last year, the category saw massive inflows of Rs.70,000 crore. This is largely due to redemption from arbitrage funds and NFOs launches in April-Sept 2021.
Passives
The popularity of passive funds has been growing. This is evident from the fact the category received net inflows of Rs.85,000 crore during April-Sept 2022. Such an inflow was Rs.53,500 crore in April-Sept 2021.
Overall
Due to heavy redemption from debt funds, the industry received net inflows of Rs.77,000 crore in April-Sept 2022 compared to huge net inflows of Rs.2.53 lakh crore in April-Sept 2021, a decline of 69% in just a year.
However, the good part is growth in AUM despite heavy redemptions. The industry saw AUM growth of 10% in the first six month of the current financial year. Equity funds reached AUM of Rs.15 lakh crore in Sept 2022 compared to Rs.12.65 lakh crore in Sept 2021, a growth of 17%.
Passives funds registered healthy growth of 42% to reach Rs.6.04 lakh crore in September 2022.
