Mutual fund AUM increases by 2.2 per cent in January

The asset under management (AUM) of the domestic mutual fund industry for the month of January 2019 grew at a rate of 2.2 per cent on a sequential basis.  It stood at Rs. 23.37 lakh crore at the end of January 2019 compared to Rs. 22.85 lakh crore at the end of December 2019. It has increased by 4.1 per cent on yearly basis.

It was again the large inflows in liquid funds that helped the AUM to grow. In the month of January, liquid funds saw total inflow of Rs. 23.51 lakh crore, however, the net inflow was to the tune of Rs. 58,637 crore due to outflow of around Rs 22 lakh crore.

Volatility in the equity market is taking a toll on the inflows to the equity-dedicated schemes. The net inflows dipped below Rs. 5000 crore in equity schemes (excluding arbitrage funds and ELSS). There was actually an outflow from Arbitrage and Balanced funds in the month of January to the tune of Rs. 1,076 crore and Rs. 952 crore, respectively. Nevertheless, due to the tax planning season, the ELSS category saw a net inflow of Rs. 1,244 crore, which is up by 48 per cent on month on month basis.