MF industry AUM touches nearly Rs. 11 lakh crore

The industry’s assets under management went up by 14% from Rs. 9.59 lakh crore in September to Rs. 10.95 lakh crore in October.

Thanks to the market rally, new fund offers and robust inflows in liquid schemes, the industry’s assets under management touched an all-time high of Rs. 10.95 lakh crore in October.

With the exception of two categories (overseas fund of funds and Gold ETFs), the industry saw positive inflows across all categories.

Equity

Since the beginning of FY 2014-15, equity funds have seen positive inflows each consecutive month. So far, the industry has attracted inflows of nearly Rs.40,000 crore in April-October 2014. The BSE Sensex has shot up 24% during the same period.

The AAUM of equity funds went up to Rs. 2.62 lakh crore due to mark to market gains and healthy inflows in existing schemes. Reflecting the positive sentiment among investors, equity funds saw an addition of 5.51 lakh folios (excluding ELSS). The total number of equity folios went up from 2.32 crore in April to 2.38 crore in October 2014.

Among the new fund offers, closed end equity funds launched in October mopped up Rs.1,512 crore while open ended equity funds mopped up close to Rs. 685 crore. AMFI data shows that the mutual fund industry collected Rs. 2,197 crore from equity NFOs in October.

However, a large part of the inflows came in existing equity funds which received Rs 7,043 crore. The Sensex scaled new highs in October, nudging investors to rush to equities.

Debt

After three months of consecutive outflows, income funds saw net inflows of Rs. 15,446 crore. In September, the category witnessed outflows of Rs. 10,567 crore. Experts attribute this reversal to growing expectations of a rate cut in the RBI’s upcoming monetary policy announcement. Also, few fund houses had come out with gilt funds having maturity of close to 10 years in October, they added.

In the debt category, liquid funds received the largest share of inflows in October, receiving net inflows of more than Rs. 1 lakh crore. In September, liquid funds witnessed net outflows of Rs. 67,318 crore due to quarter end. Typically, corporate investors pull out money in the last week of quarter and invest in the first two weeks of subsequent quarters.

ETFs

Lackluster performance of gold led investors to pull out money from gold ETFs. The category saw net outflows of Rs.38 crore in October. However, other ETFs, which track the equity indices, received inflows of Rs.429 crore in October.

Overseas fund of funds

Overseas fund of funds saw net outflows of Rs.49 crore in October. Last month, overseas FOFs witnessed net outflow of Rs.103 crore. There are 31 international funds in the industry which manage Rs. 2,856 crore.

All in all, the industry saw net inflows of Rs.1.24 lakh crore on account of robust inflows in liquid funds, income funds and equity funds. This helped the industry’s AUM touch nearly Rs. 10.95 lakh crore in October, up 14% from Rs. 9.59 lakh crore in September.

Net inflow/outflow in October

Source: AMFI