ICRA’s Monthly Update On Mutual Funds Industry - May 2019
Industry AUM grows to Rs. 25.94 lakh crore in May 2019
According to the Association of Mutual Funds in India (AMFI), Assets Under Management (AUM) of the Indian mutual fund industry came in at Rs. 25.94 lakh crore in May 2019, up 4.63% against Rs. 24.79 lakh crore in April 2019. Also, it grew 14.78% from Rs. 22.60 lakh crore in May 2018.
Income/Debt Oriented category saw AUM growth of 6.53% MoM to Rs. 13.26 lakh crore. Meanwhile, AUM under Equity, including Equity Linked Savings Schemes or ELSS (including close-ended and interval schemes), came in at Rs. 7.59 lakh crore in May 2019, up 2.82% MoM and 2.42% YoY.
Equity fund inflows surge 17.47% MoM in May 2019
The mutual fund industry saw net inflows of Rs. 76,990 crore in May 2019 as against net inflows of Rs. 100,460 crore in April 2019. The downside reflects fall in net inflows in Income/Debt Oriented Schemes category at Rs. 67,930 crore in May 2019 as against net inflows of Rs. 101,918 crore in the previous month.
Under the Income/Debt Oriented Schemes category, Credit Risk Fund saw the maximum net outflows of Rs. 4,156 crore in May 2019 as against net outflows of Rs. 1,253 crore in April 2019 amid recent credit events. Liquid funds saw the maximum net inflows of Rs. 68,583 crore, however, it was lower than the net inflows of Rs. 89,778 crore in the prior month. Meanwhile, net inflows for schemes with maturity up to three years stood at Rs. 72,347 crore in the month under review as against net inflows of Rs. 115,014 crore in April 2019. Fixed term plans registered net outflows of Rs. 1,798 crore as investors remained focused on many non-banking finance companies facing debt woes. However, it fell significantly as against net outflows of Rs. 17,644 crore in April 2019.
After falling significantly on MoM basis in April 2019, inflows in Equity funds (including ELSS and close-ended schemes) grew 17.47% MoM to Rs. 4,968 crore in May 2019. The upside was driven by political stability and healthy corporate earnings growth, according to AMFI. Hybrid schemes also witnessed net inflows of Rs. 1,266 crore in May 2019 as against net outflows of Rs. 1,615 crore in April 2019.
Large-cap funds take the second position in terms of folios in May 2019, beat multi-cap funds
According to AMFI, number of folios under the Growth/Equity Oriented schemes were highest in ELSS (14.47% of total) funds followed by Large Cap Funds (10.50% of total) and Multi-Cap Fund (10.03% of total) in May 2019. In the previous month, Multi Caps were ahead of their Large Cap peers folio wise. Notably, the top five categories in terms of folios under Growth/Equity Oriented schemes (ELSS, Large Cap Fund, Multi-Cap Fund, Sectoral/Thematic Funds and Mid Cap Fund) accounted for approximately 50% of the industry folios. Meanwhile, under the Income/Debt Oriented schemes, Liquid funds topped the chart in terms of no. of folios followed by Low Duration funds.