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MOSL: FUND FOLIO (July 2017)-Indian Mutual Fund Tracker — AUM up 6.7% QoQ in 2QCY17-rises for the 15th consecutive quarter

​FUND FOLIO (July 2017): Indian Mutual Fund Tracker — AUM up 6.7% QoQ in 2QCY17; rises for the 15th consecutive quarter; Defensives preferred in June

AUM scales new highs; defensives preferred in June

Domestic mutual fund (MF) industry average AUM increased for the 15th consecutive quarter in 2QCY17 (+6.7% QoQ) to a new high of INR19.6t. On YoY basis, average AUM saw a 35% rise (INR5.1t), primarily on account of inflows in growth (equity), income and liquid funds, backed by increased participation of domestic investors in equity schemes. The rise in the benchmark index (Nifty) was higher at 14.9% YoY.

Equity AUM rose for the seventh consecutive month in June to scale a new high of INR5.9t (+1.3% MoM and +38% YoY). The increase in equity AUM was led by a rise in equity scheme sales (INR264b; +10% MoM). Redemptions rose 38% MoM to INR183b and market indices were down (Nifty -1% MoM), leading to a fall in net inflows (INR82b, -24% MoM).

Equity AUM as a percentage of total AUM rose 60bp MoM to 31.2% in June. Equity AUM accounts for 4.7% of India’s market capitalization.