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MOSL: FUND FOLIO (June 2019)-Indian Mutual Fund Tracker — MF industry AUM hits new record high-inching towards INR26t mark

FUND FOLIO (June 2019): Indian Mutual Fund Tracker — MF industry AUM hits new record high; inching towards INR26t mark

 

Key observations

• With positive momentum of the last two months intact, the domestic mutual funds (MF) industry created a new record in May’19 — total AUM hit the INR25.9t (+4.6% MoM) mark, surpassing the previous high of INR25.2t in Aug’18. Notably, the MF industry’s AUM has surged a staggering 3.9x in the past 10 years (INR6.6t in May’09).
• The MoM increase can be primarily attributed to a rise in AUM of income/debt, equity and ETF-oriented schemes.
• Equity AUM (including ELSS and Arbitrage) increased 3.2% MoM to INR8.2t in May, led by a rise in market indices (Nifty up 1.5% MoM). While equity scheme sales were up 21% MoM to INR278b, redemptions increased marginally by 5% MoM to INR180b. Consequently, net inflows were up 69% MoM to INR97b in May.
• In wake of the on-going debt crisis, the MF industry faced immense redemption pressure in May’19, with MFs recording INR20b net outflow in close-ended debt-oriented schemes.