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MOSL: FUND FOLIO (May 2019)-Indian Mutual Fund Tracker — AUM up for second consecutive month

FUND FOLIO (May 2019): Indian Mutual Fund Tracker — AUM up for second consecutive month; net inflows moderate

 

Key observations

• Post an impressive finish to FY19 (the Nifty rallied 7.7% in Mar’19) and after a gap of eight months, the market charted a new life-time high of 11,856 in April. However, it ended flattish with marginal gains of 1% in the month.
• Net inflows moderated in April as nervousness gripped markets owing to credit events, rating downgrades, global trade war tensions and uncertainty over outcome of general elections.
• The mutual fund industry’s total AUM increased 4.2% MoM (INR1.0t) to INR24.8t in Apr’19, primarily led by inflows in income and debt oriented schemes.
• Equity inflows (including ELSS and Arbitrage) saw slowdown with net inflows of INR58b in Apr’19 v/s INR78b recorded in Mar’19. However, April flows cannot be compared to the previous month, as reported April data is in the new format prescribed by the SEBI with focus on regrouped and reclassified schemes.
• Equity mutual funds attracted steady flows, largely due to investor participation through systematic investment plans (SIPs). Total amount garnered through SIPs stood at INR82.4b in Apr’19 (+2.3% MoM and +23.1% YoY).