Equity AUM touches an all-time high in March

Thanks to the market rally and their superior fund performance, equity funds are seeing renewed interest.

The industry has attracted inflows of over Rs.71,000 crore in equity funds in FY 2014-15, shows AMFI data.  Thus, the total AAUM of equity mutual funds (including ELSS) has reached an all-time high at Rs.3.45 lakh crore in March 2015 due to mark to market gains, inflows in existing schemes and NFOs.

Reflecting the positive sentiment among investors, equity funds saw an addition of 3.82 lakh folios (excluding ELSS) in February resulting in total equity folio count reaching 3.12 crore. The industry has added 16.14 lakh folios in equity funds during April-February 2015.

In March, equity mutual funds received net inflows of over Rs. 8,480 crore. Investors poured in close to Rs.17,300 crore in March in equity funds (new launches and existing schemes especially ElSS) while redemption stood at Rs. 9,250 crore.

While a large part of inflows (Rs.16,000 crore) came in existing funds, new fund offers mopped up Rs.1,500 crore. AMFI data shows that 11 new close end equity funds including two ELSS were launched in March which collectively mopped up Rs. 1300 crore.

Net inflows/outflows in equity funds in FY 2014-15

Source: AMFI

Debt funds

Debt funds saw huge outflows due to the year end. Income funds saw net outflows of Rs.8,927 crore in March while liquid funds saw net outflows of Rs.1.13 lakh crore. Typically, corporate investors pull out money in the last week of quarter end and put it back in the first two weeks of the subsequent month.

Investors backed gilt funds on expectations of a rate cut by RBI. Gilt funds, which have seen continuous outflows in the recent past, saw net inflows of over Rs1,439 crore in March.

ETFs

Lackluster performance of gold has led investors away from gold ETFs. The category saw net outflows of Rs.111 crore in March. However, other ETFs, which track the equity indices, received inflows of Rs.623 crore in March.

Overseas fund of funds

Overseas fund of funds saw net outflows of Rs.83 crore in March. Last month, overseas FOFs witnessed net outflow of Rs.78 crore. There are 31 international funds in the industry which manage Rs. 2,526 crore.

All in all, the industry saw net outflows of Rs.1.10 lakh crore largely on account of outflows from liquid funds. As a result, the industry’s AUM dipped to Rs.10.82 lakh crore in March from Rs.12.02 lakh crore in February.

Net inflow/outflow in March

Source: AMFI Rs. cr