The assets under management (AUM) of mutual funds increased 3 per cent in March to ₹23.79-lakh crore against ₹23.16-lakh crore logged in February, despite the equity market scaling new heights.
Outflow from liquid and money market schemes stood at ₹51,343 crore last month, against ₹24,509 crore in February. Balanced and arbitrage funds also registered increased outflows of ₹3,181 crore and ₹3,998 crore last month, compared to outflows of ₹1,077 crore and ₹482 crore logged in February.
However, income funds registered inflow of ₹13,856 crore, against outflow of ₹4,214 crore.
Buoyed by the bull-run in the capital market, inflows into equity scheme, including equity-linked saving schemes (ELSS) more than doubled to ₹11,756 crore from ₹5,122 crore in February.
Inflows into exchange-traded funds (ETFs) gained at ₹10,540 crore from ₹5,234 crore with a fresh mop-up by the government through the ETF route.
The retail AUM of mutual funds was up 7 per cent at ₹10.73-lakh crore last month, against ₹10.01-lakh crore. The retail folio numbers increased to 6.93 crore from 6.87 crore.
SIP receives less
Inflow through systematic investment plans (SIPs) fell marginally at ₹8,055 crore (₹8,094 crore). However, the number of SIP accounts climbed to ₹2.62 crore from 2.59 crore in February.
NS Venkatesh, CEO, Association of Mutual Funds in India, said mutual funds have done well to hold their ground despite volatility in equity markets, tension at the Indo-Pak border, and interest payment default by NBFCs.
In fact, he said, the increase in the number of new SIP accounts opened is a testimony to retail investors’ faith in mutual funds as a preferred investment vehicle.
Yearly equity inflow down
The assets of mutual funds in the financial year ended March increased 11 per cent compared to ₹21.36-lakh crore in March 2018. Inflows into equity schemes fell 35 per cent in FY19 to ₹1.11-lakh crore, against ₹1.71-lakh crore in the year ended March 2018.
Retail AUM increased 16 per cent from ₹9.22-lakh crore in March 2018 on the back of increase in folios to 6.93 crore from 5.94 crore.
Opening of new SIP accounts was not impacted despite SEBI trimming the commission paid to distributors, said Venkatesh.