With a plethora of challenges like the pandemic, worried investor sentiments and tougher regulations from SEBI, the Mutual Fund Industry showed the will and perseverance to grow.
Shifting a major chunk of the investors to online portals in limited time and making sure that their investments were made on time, were some of the remarkable work done during lockdown.
Now its time for them to look back at the challenges they faced and the AUM they generated!
The Average asset under management (AAUM) of the domestic mutual fund industry has increased by 1.42 per cent on a monthly basis to INR 32.29 lakh crs for the month of February 2021.
February 2021 became the eighth month when the equity-dedicated funds witnessed a net outflow. These outflows were to the tune of INR 10,468 crore in February 2021 as against an outflow of INR 9,253 crore in the preceding month.
Inflows via the systematic investment plan (SIP) went through a sharp decline.
Liquid and Money Market Funds were the only two categories that saw significant inflows in the debt category, whereas Short Duration and Corporate Bond Funds witnessed major outflows.
For all these and more such interesting snippets please go through our “Mutual Fund Flows-February 2021”.
Equity mutual funds continued to witness outflows for the seventh straight month even as the benchmark indices scaled new peaks. However, investors infused Rs 2,142 crore in Hybrid schemes.
SIP inflow in December dipped to Rs 8,023 crore from Rs 8,418 crore in the previous month. The total number of SIP folios saw a marginal jump to 3.55 crore from 3.47 crore.
Within the Debt schemes, Liquid funds logged maximum outflow to the tune of Rs 45,316 crore and Low Duration funds saw outflows of Rs 8,041 crore.
Other categories, such as Short-Duration funds, Corporate Bond funds and Banking and PSU funds, witnessed net inflows. Credit-Risk funds saw net inflows of Rs 366 crore in January.
For all these details and much more please refer to our detailed report attached.
The Mutual Fund industry ended the year 2020 with an average AUM of 30.96 Lakh crores in the month of December.
Soaring equity markets provided an opportunity for a lot of investors to book profits which was clearly visible from heavy redemptions across equity mutual fund categories. However sectoral and thematic funds still lured interest of investors with a positive inflow.
Anticipation of rate hike in credit policy due to heavy liquidity and fear of inflationary pressure had led to increase in yields and as a result decrease in returns in the first half of December. As a result, categories like Ultra Short Duration, Low duration and money markets faced heavy redemptions.
Liquid and Overnight funds saw inflows as these categories are used by companies to park their short-term money.
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November month saw a new milestone for MF industry with Rs. 30 Lakh Crore net assets under management.
Indian equity markets saw a surge due to highest ever monthly inflows of FII in Indian markets and better than expected economic data. This surge was treated as an opportunity to book profits and heavy redemptions were seen in equity mutual fund schemes across categories.
In debt, money flowed from low duration categories to higher duration categories for better returns through accruals in a low interest rate scenario.
The MPC of the Reserve Bank of India unanimously voted to keep the key rates unchanged and maintained an accommodative stance amid elevated inflation constraints. Find below the key highlights and implications of the policy on 4th December 2020.
The Mutual Fund industry recorded its highest ever total Assets Under Management (AUM) in October 2020.
The Industry AUM has grown leaps and bounds from Rs.6.46 trillion as on 31st Oct 2010 to reach Rs.28.23 trillion as on 31st Oct 2020.
Equity funds witnessed net outflow of Rs 2,725 crs in October, as against Rs.734 crs during the previous month.
Debt schemes and Corporate Bond Funds saw the biggest inflows in October in more than a year.
For all this and more such analysis do have a look at our report on Mutual Fund Flows – Oct 2020
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In September 2020, the mutual fund industry saw a net outflow of approx. INR 52,000 Crs with a decrease in the Avg. AUM by 0.14%.
Notably, in the Debt category, Liquid Funds faced heavy outflows on account of advance tax payments in the quarter end.
Do have a look at a brief analysis of the Mutual Fund Flows of September 2020 for more information.