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The MF industry has crossed Rs.50 lakh crore milestone in December 2023. AMFI data shows that the average AUM of the MF industry reached Rs.51.09 lakh crore in December 2023 despite net outflows of close to Rs.40,684 crore.
Let us look at some key highlights of December:
Healthy inflows in equity funds
Equity funds saw healthy net inflows of close to over Rs.17,000 crore, with sectoral/thematic funds leading the pack with net inflows of over Rs.6,000 crore. Small-cap funds received the next highest net inflows Rs.3,900 crore.
Among other categories that received healthy net inflows were large & mid cap fund (Rs. 2,300 crore), multi-cap funds (Rs.1,850 crore) and mid cap funds (Rs. 1,400 crore).
Interestingly, equity funds saw net inflows for the 34 months in a row.
Debt fund saw outflows due to liquid phenomena
Debt funds saw net outflows of Rs. 75,600 crore due to major outflows of Rs. 40,000 crore from liquid funds.
Low duration funds and money market funds also recorded outflows of Rs.9,000 crore and Rs.8,300 crore.
Among debt categories that received net inflows were short-duration funds (Rs. 595 crore), long-duration funds (Rs. 270 crore), corporate bond funds (Rs.188 crore) and gilt funds with a 10-year constant duration (Rs. 54 crore).
Hybrid funds: The arbitrage show
Hybrid funds saw net inflows of Rs. 15,000 crore mainly due to net inflows of Rs.10,600 crore in arbitrage funds.
Multi-asset allocation funds saw the second highest net inflows of Rs. 2,400 crore while the dynamic asset allocation/balanced advantage funds saw net inflows of Rs. 1,400 crore.
However, aggressive hybrid fund and conservative hybrid fund saw outflows last month.
Passives funds
Index funds, gold ETFs and other ETFs saw net inflows of Rs. 570 crore in December. Index funds and gold ETFs received net inflows of Rs.700 crore and Rs. 88 crore, respectively. While, other ETFs, which include both equity and debt ETFs saw net inflows of Rs. 200 crore.
Other key highlights
- 21 NFOs received Rs.9,900 crore in December
- Retail MF folios now stand at 13.18 crore
- The total MF folios reached an all-time high of 16.50 crore
- Retail AUM grew to Rs. 29 lakh crore
- Monthly SIP contribution all time high at 17,610 crore
- SIP accounts stood at 7.63 lakh crore
- The SIP AUM grew to Rs. 9.95 lakh crore
- The industry added 40 lakh new SIP accounts
- SIP matured/discontinued/paused were close to 21 lakh
Akhil Chaturvedi, CBO, Motilal Oswal MF said, “Overall, investor sentiment remained buoyant on back of persistence of market strength. Market and investor sentiment in the run up to the year of general elections remains positive.”
Manish Mehta Head-Sales, Marketing and Digital Business, Kotak Mutual Fund said, “December witnessed a 50 by 50. Overall, industry crossed Rs.50 lakh crore of AUM and equity gross sales crossed Rs.50,000 crore. This included NFO listings. SIPs inflow continued to be strong. Investors continued to choose the SIP to take market exposure to iron out volatility. It was jingle bells jingle bells SIP all the way. Thanks to our industry’s Santa, our mutual fund distributors, mutual fund investors continue to benefit from the power of SIPs.”
