mutual funds AUMThe mutual fund industry crossed Rs 25 lakh crore in total assets under management at the end of the first month of the new financial year.  The AUM growth in the last month has been supported by debt funds which brought in Rs 1.2 lakh crore net inflows in April 2019, while pure equity funds contributed Rs 4,608 crore. The total AUM as of March 31 was Rs 23.79 lakh crore. The good news is systematic investment plan (SIP) book continues to grow amid volatile markets. RupeeIQ looks at the details.

In a first, MF industry lobby AMFI has revealed the monthly assets, net inflows, and folios for all the 38 open-ended category schemes, 6 closed-ended category schemes, and 3 interval category schemes. This means it will be difficult to compare flows data of specific categories in April with earlier time periods since that data is not there.

Open-ended schemes saw Rs 1.19 lakh crore net inflows, but closed-ended schemes saw net outflows of Rs 18,949 crore in April. Closed-ended scheme category Fixed Maturity Plans (FMPs) recorded Rs 17,644 crore net outflows as a bunch of redemptions took place in April 2019.

In the open-ended equity fund category (total of 10 types), multi cap funds saw the highest net inflow of Rs 1,873 crore, followed by Rs 955 crore in smallcap funds, Rs 567 crore in thematic funds, and Rs 491 crore in midcap funds. Large & Mid Cap funds, as well as dividend yield funds, saw net outflows in April.

Equity funds flow in April 2019

Scheme Name No. of Schemes No. Of Folios Net Inflow or Outflow Net Aum
Multi Cap Fund 34 8,718,034 1,873.06 152,056.40
Large Cap Fund 29 8,179,430 48.27 126,595.93
Large & Mid Cap Fund 24 4,352,083 -20.50 51,426.53
Mid Cap Fund 24 6,128,989 491.04 75,058.47
Small Cap Fund 20 4,946,766 955.83 43,872.11
Dividend Yield Fund 6 505,530 -32.03 4,825.60
Value Fund/Contra Fund 18 4,465,360 39.69 58,196.25
Focused Fund 18 2,865,887 227.57 37,392.52
Sectoral/Thematic Funds 91 6,317,911 567.17 62,082.45
ELSS 43 11,484,832 458.65 92,043.50
Total 307 57,964,822 4,608.74 703,549.78

In open-ended hybrid scheme category (total of 6 types), balanced hybrid/aggressive hybrid schemes saw net outflow of Rs 2,121 crore, followed by Rs 708 crore going out of equity savings funds, Rs 239 crore in conservative hybrid funds and Rs 229 crore net outflows in multi-asset allocation funds.

In open-ended debt fund category (total of 16 types), liquid funds garnered maximum Rs 89,778 crore net inflows, followed by Rs 11,037 crore in ultra-short duration, Rs 6,418 crore in money market funds, and Rs 4,913 crore in low duration funds. Credit risk funds saw outflows of Rs 1,253 crore and medium duration funds saw Rs 531 crore going out.

In the SIP performance, April 2019 continued to see healthy growth. As much as Rs 8,238 crore came in April, a rise of 2% compared to March. N S Venkatesh, CEO, AMFI said: “Steady growth in Equity SIPs, continued net inflows into equity schemes and overall AAUMs crossing Rs 25 lakh crore, driven by inflows into liquid funds in April 2019 is reflective of the overall retail and institutional investor confidence in the India growth story.”

Explaining net outflows and subdued response to Fixed Maturity Plans (FMPs) and credit risk fund categories, Venkatesh said: “Overall nervousness in the markets owing to credit events, rating downgrades, and defaults, coupled with global trade imbalance, and uncertainty over outcome of general elections has led to investors getting into wait–n– watch mode. We expect investors would return in a big way, as corporate earnings improve further and once the general elections related uncertainty and global headwinds recede over the next few months.”

Author
Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. He can be contacted on contact@rupeeiq.com