MF Update: February AUM falls marginally on sequential basis

The asset under management (AUM) of domestic mutual fund has declined marginally in the month of February 2019 on a sequential basis. The MF AUM at the end of January 2019 stood at Rs. 23.37 lakh crore compared to Rs. 23.16 lakh crore at the end of February 2019 a drop of around 1 per cent. The reason for such a fall is that most MF categories have seen an outflow in the month of February.

Out of the 10 categories such as ‘income’, ‘balanced’, ‘gilt’ for which the industry body Association of Mutual Funds in India (AMFI) publishes its report, 5 have shown net outflow in the month of February. Overall, the net outflow for the month was Rs. 20,083 crore. ELSS, other ETFs and equity schemes have seen positive inflows during the last month. They saw a net inflow of Rs. 1,174 crore, Rs. 5,234 crore and Rs. 3,948 crore, respectively. Inflows in the equity scheme touched its 25 month low in the month of February.
The liquidity crisis seems to be still haunting Indian corporates as we see Rs. 24,509 crore of net outflows from Liquid or money market fund in the latest month.

Overall, we see lower inflows to mutual fund this year to date. Total net inflows in the current year are Rs. 1,32,058 crore compared to Rs. 3,22,549 crore in the same period last year.