Investor assets in MFs hit record high of Rs 28.18 lakh cr; mid, small cap funds see over 100% jump in inflows

Industry expects this positive growth momentum in mutual funds AUM to sustain, driven by budget cues and RBI stance on continuing benign rates

Kumar Shankar Roy Feb 11, 2020

Mutual funds ULIPAs investors continue to pour money in mutual funds (MF) and markets sustain their upward movement, the mutual funds industry’s asset size hits another high. The MF assets stood at a record Rs 28.18 lakh crore in January 2020, driven by positive flows in all categories of open-ended schemes, and growing retail monthly SIP contribution. Debt funds reversed the net outflows of December 2019 and in fact garnered over Rs 1.09 lakh crore in the first month of the new calendar year. Equity funds saw a stellar 75% jump in net inflows, ahead of the Union Budget event. Read on to know more.

Equity funds

Assets under management touched Rs 7.89 lakh crore in equity funds category (open ended) across 328 schemes.

There was one new scheme launched in this month (Tata Quant Fund) that collected Rs 106 crore.

Importantly, net inflows for overall equity funds grew by 75% from Rs 4,499.39 crore in December 2019 to Rs 7,877.40 crore in January 2020.

Multicap funds saw a 236% jump in net inflows at Rs 1,722.29 crore in January 2020 compared to Rs 511.74 crore in December 2019. Largecap funds saw just a 2% jump in net inflows. Smallcap funds reported a 154% boost in net inflows, followed by midcap funds clocking a 125% increase in net inflows, and large & midcap funds saw a 115% rise in net inflows. ELSS similarly experienced a 94% growth in net inflows at Rs 931.72 crore.

However, focused funds witnessed a 28% drop in net inflows at Rs 1,305 crore. Dividend yield funds and value funds/contra funds posted net outflows.

In terms of SIP (Systematic Investment Plan), data shows about 3.03 crore accounts. New SIP folios are 12.07 lakh. SIP contribution during the month was Rs 8,531.90 crore, a new high. SIP AUM stood at Rs 3,24,868.34 crore. Closed or matured SIP accounts were 5.95 lakhs

Debt funds

Assets under management touched Rs 12.41 lakh crore in debt funds category (open ended) across 323 schemes.

There were three new debt schemes (BOI Axa Overnight Fund, Invesco India Overnight Fund and HSBC Ultra Short Duration Fund) launched in this month that collected Rs 2,149 rore. This number includes two fixed term plans.

Importantly, net inflow picture for overall debt funds changed from net outflows of Rs 78,426.83 crore in December 2019 to Rs 109,305.61 crore net inflows in January 2020.

Most of the debt fund categories saw money coming in January 2020, a stark contrast to what happened in December 2019 when corporates redeemed to show larger cash in their balance sheets. Overnight funds saw net inflows of Rs 22,652.40 crore. Liquid funds witnessed robust inflows of Rs 59,682.29 crore.

Others like ultra short duration funds(Rs 8,152.75 crore), low duration funds (Rs 5,562.09 crore), money market funds (Rs 6,989.65 crore), short duration funds (Rs 2,903.63 crore), corporate bond funds (Rs 1,969.32 crore), banking & PSU funds (Rs 3,032.93 crore), and floater funds (Rs 496.88 crore) saw healthy flows.

N S Venkatesh, CEO, AMFI said:”We expect this positive growth momentum in mutual fund AUMs to continue, driven by growth-oriented budget and RBI stance on continuing benign Interest Rate cycle, resulting in 15% to 20% growth for the mutual fund industry this fiscal.”

However, 6 debt categories saw net outflows in January 2020. These include medium duration funds (Rs 252.92 crore), medium to long duration fund Rs (Rs 87.06 crore), and dynamic bond funds (Rs 83.74 crore). Credit risk funds saw a whopping Rs 1,214.70 crore net outflows. Gilt funds also witnessed Rs 512 crore worth net outflows, but gilt funds with constant maturity saw marginal net inflows.

Hybrid funds

Assets under management touched Rs 3.62 lakh crore in hybrid funds category (open ended) across 130 schemes.

Importantly, the net flows for hybrid funds changed from net outflows of Rs 1,183.75 crore in December 2019 to net inflows of Rs 1,259.52 crore in January 2020.

Notably, arbitrage funds and multi asset allocation saw over 170% rise in net inflows each. Dynamic asset allocation funds saw nearly 60% jump in net inflows in January 2020. Importantly, net outflows in balanced hybrid/agressive hybrid funds narrowed by about 40% while net outflows rose by 23% in conservative hybrid funds.

Equity Fund flows

Equity Scheme Name Flows in Jan 2020 Flows in Dec 2019
Multi Cap Fund 1,722.29 511.74
Large Cap Fund 1,154.00 1,134.80
Large & Mid Cap Fund 692.45 321.48
Mid Cap Fund 1,798.16 796.08
Small Cap Fund 1,072.68 421.63
Dividend Yield Fund -63.76 -23.12
Value Fund/Contra Fund -739.08 -818.3
Focused Fund 1,305.14 1,837.37
Sectoral/Thematic Funds 3.8 -161.86
ELSS 931.72 479.57
Sub Total 7,877.40 4,499.39

All figures in Rs crore

Debt fund flows

Debt Scheme name Flows in Jan 2020 Flows in Dec 2019
Overnight Fund 22,652.40 -8,868.63
Liquid Fund 59,682.29 -71,158.51
Ultra Short Duration Fund 8,152.75 -2,522.54
Low Duration Fund 5,562.09 -1,596.67
Money Market Fund 6,989.65 -3,005.61
Short Duration Fund 2,903.63 3,457.17
Medium Duration Fund -252.92 -518.95
Medium to Long Duration Fund -87.06 -145.8
Long Duration Fund -1.95 17.69
Dynamic Bond Fund -83.74 -151.02
Corporate Bond Fund 1,969.32 1,383.36
Credit Risk Fund -1,214.70 -1,190.94
Banking and PSU Fund 3,032.93 4,770.23
Gilt Fund -512.63 386.69
Gilt Fund with 10 year constant duration 16.68 2.68
Floater Fund 496.88 714.02
Sub Total 1,09,305.61 -78,426.83

All figures in Rs crore


Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. Kumar is a financial journalist, with a functional experience of 15 years. He tracks mutual funds, insurance, pension, PMS, fixed income/debt and alternative investments markets closely. He has worked for The Times of India, The Hindu Business Line, Deccan Chronicle Group, DNA, and Value Research, among others, across different cities in India. He is deeply interested in marrying data insights with actionable opinion. He can be contacted at kumarsroy@rupeeiq.com.

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