MUMBAI: Assets managed by
mutual funds (MFs) in the country crossed the Rs 25-lakh-crore milestone at the end of August, helped by strong participation of
retail investors in the last few years and substantial inflow into
liquid funds from corporates last month. From Rs 23.1 lakh crore at the end of July, assets under management (AUM) of the 42 fund houses together was Rs 25.2 lakh crore on August 31, data by industry trade body
AMFI showed.
As of August 2017, the AUM was Rs 20.2 lakh crore.
According to AMFI CEO
N S Venkatesh, the monthly rise in AUM was because of the industry body’s investor awareness campaign and strong participation from retail investors. About a year ago, AMFI, on behalf of the MF industry, had launched an awareness campaign with the tag line ‘Mutual funds sahi hai’, which has now emerged to be popular among Indians.
Retail investors have also been putting money in mutual funds schemes, especially in those that invested mainly in shares through the
systematic investment plan (
SIP) route. As of August, inflows through SIPs were nearly Rs 7,700 crore, compared to Rs 4,947 crore in August 2017 and Rs 3,334 crore as of August 2016, AMFI data showed.
“Aided by SIPs, retail inflows have been positive for 29 consecutive months. The overall number of folios have risen for 51 months in a row. This has translated into the MF industry’s AUM crossing Rs 25 lakh crore, a significant milestone for the industry,” Venkatesh said.
In August, about Rs 1.7 lakh crore worth of funds came into liquid and money market funds, while equity schemes saw inflows of about Rs 7,700 crore. However, income funds witnessed outflows of about Rs 6,500 crore.
