ICRA’s Monthly Update On Mutual Funds Industry - June 2019
AAUM grows to Rs. 25.81 lakh crore in June, B30 account for 15.50% of the AAUM
According to the Association of Mutual Funds in India (AMFI), the mutual fund industry’s total Average Assets Under Management (AAUM) came in at Rs. 25.81 lakh crore in June 2019, up 1.50% MoM.
The country’s smaller towns or B30 (beyond top 30 cities) accounted for 15.50% of the total industry AAUM in June 2019, up from 15.26% at the end of May 2019 and 14.09% in June 2018. Non-associate distributors, direct plans and associate distributors contributed 50.82%, 41.03% and 8.15% to the total AAUM, respectively.
State-wise, AAUM from Maharashtra and New Delhi came in at approximately Rs. 10.80 lakh crore and Rs. 2.29 lakh crore, respectively, in the month under review. Maharashtra continued to be the biggest contributor (41.84%) followed by New Delhi (8.86%). Karnataka and Gujarat took third and fourth positions. Contribution from Karnataka (7.06%) fell MoM, while it grew for Gujarat (6.94%).
As per AMFI data for June 2019, out of 37 states and Union territories, 16 had more than 50% assets in Equity schemes. Maharashtra, New Delhi, Karnataka and Gujarat contributed 26.30%, 36.64%, 39.92% and 42.00%, respectively, to Equity schemes in June 2019. Meanwhile, contribution to Liquid schemes came in at 30.89%, 25.95%, 20.59% and 17.10% from Maharashtra, New Delhi, Karnataka and Gujarat, respectively.
Equity-oriented schemes account for 42.31% of AAUM in June, up from 41.84% in May
Out of total AAUM, proportionate share of Equity-oriented schemes came in at 42.31% in June 2019 against 41.84% in the previous month. Meanwhile, for Liquid and Debt oriented schemes put together, it came in at 51.91% in June 2019 against 52.73% in the previous month. Exchange Traded Funds (ETFs) and Fund of Funds (FoFs) share stood at 5.78% in June 2019.
Contribution from Individual investors at 54.34% in June 2019
According to AMFI, Individual investors (including high net worth individuals) contributed 54.34% of the industry AAUM in June 2019 as against 54.12% in May 2019. Institutional investors formed the balance 45.66%, out of which 90.74% is constituted by corporates and rest by banks and FIIs.
SIP contribution comes in at Rs. 8,122 crore in June, up 71% in 2-year period
Total contribution of Systematic Investment Plans (SIPs) to mutual funds came in at Rs. 8,122 crore in June 2019, down 0.75% compared with Rs. 8,183 crore in May 2019, according to AMFI. However, it grew 7.52% YoY and nearly 71% in a 2-year period. The monthly SIP contribution has remained above the Rs. 8,000 crore mark for the seventh consecutive month. The mutual fund industry has added about 9.32 lakh SIP accounts each month on an average in FY20.