MF Update: Domestic AUM stood at Rs. 26L crore in May 2019

The asset under management (AUM) of the domestic mutual fund industry has grown by 4.6 per cent on a monthly basis for the month of May 2019. It increased from Rs. 24.78 lakh crore at the end of April 2019 to Rs 25.93 lakh crore at the end of May 2019.

Almost all the major categories have witnessed growth in the month of May 2019. Contrary to the normal perception that turmoil in the debt market is impacting the flows in debt funds, they have witnessed the best growth at a broader level. Liquid fund category has witnessed the largest inflows to the tune of Rs. 68,582 crore. Major outflows were witnessed in Credit Risk funds and short to medium duration funds. Banking & PSU funds attracted around Rs. 3,381 crore.

In terms of equity funds, total equity AUM has increased by around 3 per cent to Rs. 7.24 lakh crore. In terms of net inflows, on a monthly basis, it has crossed Rs. 5,000 crore mark once again. It stood at Rs. 5,407.75 crore for the month of May compared to Rs. 4,608 crore. Focused funds, mid-cap funds and small-cap funds attracted most inflows in equity-dedicated funds. Last time (April 2019) it was multi-cap funds that attracted most of the inflows among equity funds. With the news of the formation of a stable government in the centre, investors are more confident in the performance of small-cap and mid-cap funds that remained the laggards in the last one and half years.

The lowest growth was witnessed in hybrid categories of funds. The AUM of hybrid funds grew by a mere 1.9 per cent. Nevertheless, against the outflow of Rs. 1,614 crore in April 2019, in the month of May 2019 it saw an inflow of Rs. 1,265 crore.