With Indian equity market at a record high, the MF industry’s AUM crossed Rs.30 lakh crore for the first time to reach Rs.30.96 lakh crore as on December 2020.
However, equity funds have witnessed net outflows for the sixth consecutive session as investors booked profits. A silver lining here was that after witnessing decline for a few months, SIP inflows in December has increased to Rs. 8,418 crore in December from Rs. 7,302 crore in November.
Commenting on this trend, NS Venkatesh, CEO, AMFI, said "MF industry AUM at an all-time high, increase in retail folios and also SIP folios, is reflective of investor confidence in mutual fund asset class. While net-inflows in equity funds and hybrid are indeed negative, on the back of profit-led redemptions, the gross inflows are a healthy Rs.36,000 crores in these two categories. On the debt side, I expect RBI to continue maintaining an accommodative stance and keep rates at current levels for economy to play a catch up, which is reflected in positive flows in corporate bond funds owing to the schemes holding quality paper and also shorter duration strategies including floater and dynamic bond schemes."
Equity schemes
- Overall, equity schemes have recorded net outflows of Rs. 10,147 crore in December. However, net outflows reduced from Rs. 12,917 crore in November
- All equity funds (except dividend yield funds) witnessed net outflows due to profit booking
- Large cap schemes have witnessed highest net outflows of Rs. 3,876 crore followed by multi cap schemes with net outflows of Rs.3,540 crore
- Mid cap and small cap schemes have seen net outflows of Rs. 1,635 crore and Rs.696 crore respectively
- Number of folios in equity funds has risen by 2 lakh to 6.37 crore in December
Debt schemes
- Debt schemes have witnessed net inflows of Rs. 13,862 crore led by strong inflows in overnight funds, corporate bond funds and liquid funds
- The industry has recorded net inflows in short duration funds, medium duration funds, long duration funds and banking and PSU funds
- On the other hand, ultra-short duration funds, low duration funds, money market funds, credit risk funds and gilt funds have seen net outflows last month
Hybrid schemes
- Barring conservative hybrid funds, all categories of hybrid funds have recorded net outflows of Rs. 5,932 crore
- While balanced hybrid fund and balanced advantage have seen net outflow of Rs. 3,913 crore and Rs.546 crore respectively, conservative hybrid funds saw net inflow of Rs.81 crore
SIP trend
- After witnessing decline for a few months, SIP inflows in December has increased to Rs.8,418 crore in December from Rs.7,302 crore in November
- In addition, the industry has seen a marginal increase in number of SIP folios to 3.47 crore from 3.41 crore
- Overall, SIP AUM has grown to Rs 3.98 lakh crore in December from Rs.3.78 lakh crore in November
Broad trend
- Overall, the MF industry has witnessed net inflow of over Rs.2, 967 crore
- The total AUM of the MF industry has reached Rs.30.96 lakh crore from Rs.29.83 lakh crore in November
